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The FBI and US Attorney’s Office have launched a formal investigation into NY Attorney General Letitia James for alleged mortgage fraud involving properties in Brooklyn and Virginia, potentially exposing the hypocrisy of the woman who spent years targeting President Trump.
Key Takeaways
- NY Attorney General Letitia James is under formal FBI investigation for allegedly falsifying residence information on mortgage applications in both Virginia and Brooklyn
- The criminal investigation follows a referral from Federal Housing Finance Agency Director William Pulte, alleging James provided false information to lenders
- Critics point to James’s 2018 campaign promises to investigate Trump as evidence of political bias and prejudicial intent before any evidence of wrongdoing
- James denies all allegations, claiming the investigation is politically motivated retaliation for her civil fraud case against President Trump
Federal Authorities Target James for Mortgage Fraud
The tables have dramatically turned on New York Attorney General Letitia James as federal authorities launch a formal investigation into her own financial dealings. The FBI, working alongside the US Attorney’s Office for the Northern District of New York, is investigating serious allegations that James falsified residence information and financial data on mortgage applications for properties in both Brooklyn and Virginia. The investigation stems from a criminal referral by Federal Housing Finance Agency Director William Pulte, who alleges James deliberately misled lenders and falsified property records.
One of the primary concerns involves James allegedly claiming a Virginia home as her primary residence in 2023, despite New York law requiring the state’s Attorney General to reside within New York state. Additionally, investigators are examining discrepancies surrounding a Brooklyn property James purchased in 2001. The allegations suggest potential violations of federal mortgage fraud statutes – ironic given James’s aggressive pursuit of financial fraud cases during her tenure as Attorney General.
🚨I commend the FBI and the U.S. Attorney for the Northern District of New York for investigating New York Attorney General Letitia James over mortgage fraud. Nobody is above the law. These serious allegations—falsifying records to secure favorable loan terms on properties in… pic.twitter.com/zDotSYscUp
— Elise Stefanik (@EliseStefanik) May 8, 2025
Questions of Political Bias and Targeted Prosecution
The investigation has brought renewed attention to James’s 2018 campaign rhetoric, which critics have long pointed to as evidence of improper political motivation. US Attorney John A. Sarcone III highlighted troubling aspects of James’s campaign conduct that suggested predetermination to target President Trump without specific allegations of criminal activity. This raises serious concerns about prosecutorial ethics and the weaponization of state legal powers against political opponents.
“The US attorney said James ‘unethically ran around the state campaigning on getting Donald Trump,’ and essentially accused her of finding a criminal target without an alleged crime,” US Attorney John A. Sarcone
Throughout her 2018 campaign, James repeatedly vowed to investigate President Trump’s business dealings, statements that President Trump and his allies have consistently characterized as evidence of a political witch hunt. The current federal investigation into James may finally provide vindication for those claims, as the Attorney General who targeted the President now finds herself under scrutiny for potentially similar financial improprieties that she aggressively prosecuted in others.
Media Coverage and Denials
Despite the severity of the allegations against a high-profile state official, mainstream media coverage has been notably sparse. Mediaite founder Dan Abrams expressed surprise at both the seriousness of the allegations and the relative media silence surrounding the investigation. Initially skeptical of the claims as potential political retaliation, Abrams changed his assessment after reviewing the substance of the allegations.
“When I first heard that the attorney general had been referred, there was a criminal referral made by the director of the federal Housing and Finance Agency, my initial response was, ‘Oh boy, here we go. Trump is just weaponizing the departments and, in this case, making a reference to the DOJ, and I’m sure this was all nonsense,” said Dan Abrams
James has categorically denied any wrongdoing, insisting the investigation represents politically motivated retaliation for her civil fraud case against President Trump. However, the federal nature of the investigation and its origin from the Federal Housing Finance Agency suggest legitimacy beyond simple political payback. As the investigation proceeds, it may reveal whether those who have wielded legal authority so aggressively against political opponents have themselves adhered to the same standards of legal compliance they’ve demanded of others.