The Trump administration is considering federal criminal charges against New York Attorney General Letitia James, following serious allegations of mortgage fraud related to multiple property transactions. The charges could include wire fraud and making false statements to a financial institution.
A letter sent Tuesday from the Federal Housing Finance Agency (FHFA) to the U.S. Department of Justice accuses James of falsifying loan documents to obtain more favorable mortgage terms. FHFA Director William Pulte detailed allegations that James listed a Virginia property as her primary residence—despite being required by New York law to maintain her primary residence in-state—and misrepresented her father as her husband on federally backed mortgage applications.
According to the documents, James acquired a Norfolk, Virginia home using the false residency claim to secure better loan terms. In a separate transaction dating back to 1983, James is alleged to have listed her father as her husband in a Brooklyn property purchase to qualify under favorable borrower conditions. Pulte’s letter asserts the fraud was ongoing, culminating shortly before James launched her high-profile civil fraud case against President Donald Trump.
That trial, which ended in a $454 million civil judgment against Trump and his company, is currently under appeal. The charges James brought were based on accusations that Trump inflated property values for personal gain—charges his legal team has vigorously denied.
The referral raises concerns about the impartiality of James’s pursuit of Trump, especially given the allegations that she engaged in real estate misrepresentation herself. Pulte’s letter to U.S. Attorney General Pam Bondi states the documented evidence “raises serious concerns” and calls for a federal investigation.
James’s office dismissed the charges as politically motivated. In a statement, her team claimed she would “not be intimidated by bullies,” accusing the Trump administration of weaponizing federal power against political adversaries.
Letitia James, elected in 2018, has repeatedly clashed with President Trump, leading or joining multiple lawsuits against his administration over issues ranging from immigration policy to federal funding rollbacks. The FHFA’s referral signals a new chapter in the battle between the two legal powerhouses, now with potential criminal consequences on the horizon.
