New York Attorney General Letitia James has come under scrutiny for potential mortgage fraud, leading to a criminal referral by the Trump administration.
Breitbart reported that shortly before her office achieved a major financial victory against the Trump Organization, New York Attorney General Letitia James was referred for potential prosecution related to alleged discrepancies in mortgage applications.
The issue began when Donald Trump's administration, through Federal Housing Finance Agency (FHFA) Director William Pulte, moved to refer James for prosecutorial consideration to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche.
This referral was rooted in alleged falsehoods surrounding a home loan for a property in Virginia, reported to be James's main residence in 2023 while she was serving as a prosecutor in New York.
These allegations surfaced weeks before James initiated a significant civil fraud trial against the Trump Organization. In the trial, she accused the organization of overinflating property values to enhance asset valuations for loans and insurance benefits.
This litigation culminated in a $454 million judgment against the Trump Organization, favoring the state of New York—a verdict currently under appeal by the organization.
The referral letter specifically highlighted that James had declared the Norfolk, Virginia, property as her primary home on mortgage applications, despite legal mandates requiring her residency in New York. This contradiction raised questions over the honesty of her declarations when securing home loans.
Furthermore, the investigation pointed out potential misrepresentations by James regarding the property and mortgage details for her 2023 purchase in Norfolk, Virginia.
These alleged discrepancies were purported to help her secure more advantageous loan conditions, such as a lower interest rate.
In an earlier related incident from 2001, James reportedly purchased a five-family property in Brooklyn, inaccurately presenting it as a four-unit property in both building permits and mortgage documents. This past behavior, similarly aimed at obtaining favorable lending terms, was also noted in the referral.
Additionally, the letter disclosed another property transaction involving James and her father, where incorrect familial relationship information was purportedly listed.
These documented inconsistencies across different transactions suggested a pattern of behavior that could influence lending terms and enforcement examine these allegations closely.
Director William Pulte, in the referral, expressed concern that James might have "falsified records to meet certain lending requirements and receive favorable loan terms" for the properties mentioned, adding further weight to the allegations against her.
Legal analyst Johnathan Turley highlighted a potential defense for James, suggesting she could argue that these misrepresentations were conducted by third parties.
However, he noted the irony, pointing out that James had dismissed such defenses in her prosecution of the Trump Organization, where she had maintained that Trump should have personally ensured the accuracy of the submissions made under his or his company's name.
Turley also observed that it would be contradictory for James to diminish the seriousness of these allegations, given her previous stance that no one, regardless of their wealth or power, is above the law. This statement was a cornerstone of her arguments during the Trump Organization trial.