New York Attorney General Letitia James is facing scrutiny following a federal referral for possible criminal prosecution over alleged mortgage fraud involving properties in Virginia and Brooklyn, CBS News reported over the weekend.
Director of the Federal Housing Finance Agency, William Pulte, wrote a letter obtained by CBS News New York to US Attorney General Pam Bondi alleging that James “has, in multiple instances, falsified bank documents and property records to acquire government-backed assistance and loans and more favourable loan terms.”
According to the letter, James may have misrepresented her primary residence in order to secure better mortgage rates for a home purchased in Norfolk, Virginia, in 2023.
The letter claims James granted power of attorney to Shamice Thompson-Hairston to make the property her “principal residence”, despite her role as New York attorney general requiring her to reside in-state.
”At the time of the 2023 Norfolk, VA property purchase and mortgage, Ms James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York even though her mortgage applications list her intent to have the Norfolk, VA property as her primary home,” Pulte wrote.
Pulte also pointed to a Brooklyn property James purchased in 2001, alleging she misrepresented the building as having four units, the maximum eligible for certain loan programmes, when it actually had five.
The discrepancy, according to the letter, may have enabled James to qualify for lower interest rates.
Another claim involved a 1983 mortgage document, in which James and her father allegedly signed as husband and wife.
Pulte concluded that the actions, if substantiated, could result in charges such as wire fraud, mail fraud, bank fraud, and making false statements to a financial institution. Bondi acknowledged receiving the referral and confirmed that her office would review it.
Spanning the last two decades, Ms. James has consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications.
“It appears that Ms. James may have listed the Brooklyn, NY property as four units instead of five units in order to meet the conforming loan requirements and thus receive better interest rates,” Pulte said.
In response, a spokesperson for the New York attorney general’s office stated, “Attorney General James is focused every single day on protecting New Yorkers, especially as this administration weaponises the federal government against the rule of law and the Constitution.
“She will not be intimidated by bullies, no matter who they are.”
James later appeared on NY1, describing the accusations as “baseless” and part of a “revenge tour,” linking the referral to political retaliation following her high-profile lawsuit against former President Donald Trump.
In 2022, James led a civil case that resulted in Trump and his organisation being found liable for fraud, with penalties totalling over $500m after interest.
Governor Kathy Hochul commented on the situation, suggesting James should be allowed to respond to the allegations. “He said he was going to go after his enemies… and he’s finally gotten down to maybe the J’s on his list — Tish James,” Hochul said.
Legal expert Nicole Brenecki noted the potential seriousness of the claims, highlighting that James could face civil fraud charges if the allegations are proven. However, she also emphasised that statutes of limitations may limit the relevance of older allegations, such as the 1983 document.
At this time, James has not been formally charged with any crime.