The FBI has unsheathed its investigative claws, targeting New York Attorney General Letitia James for alleged mortgage fraud. The probe, sparked by a referral from Federal Housing Finance Agency Director William Pulte, accuses James of falsifying records to snag favorable loans.
The New York Post reported that the FBI and Albany’s US Attorney’s Office are digging into claims that James misrepresented details to secure loans for a Virginia home bought in 2023 and a Brooklyn brownstone she’s owned since 2001.
This investigation, first reported by the Albany Times Union, has James in the hot seat for allegedly claiming the Virginia property as her primary residence while serving in New York. Actions, it seems, have consequences.
Last month, Pulte fired off a letter to the Justice Department, urging a criminal probe into James’ financial dealings. He alleged she fudged records to meet lending requirements, a move that could spell wire fraud, mail fraud, or bank fraud charges. The irony of a law enforcer potentially breaking the law is thicker than a Brooklyn accent.
The investigation falls under New York’s Northern District, led by US Attorney John Sarcone III, a known Trump ally.
This detail hasn’t escaped James, who’s quick to cry foul, labeling the probe a “revenge tour” by President Trump. Her dismissal of the allegations as “baseless” sounds like a desperate dodge.
James’ office hired Abbe David Lowell, a high-profile attorney who’s represented Hunter Biden, to fend off the accusations. Notably, Lowell’s fees will be footed by New York taxpayers, not James herself. The state’s generosity with public funds for her defense raises eyebrows.
Democrats in Albany are poised to greenlight a $10 million fund to cover legal fees for state officials, even for probes unrelated to their jobs. James plans to tap both this fund and a private legal defense fund to battle the allegations. It’s a cozy setup for someone facing serious charges.
James has a history of tangling with Trump, launching a 2019 investigation that led to a $454 million judgment against him and his real estate empire.
Her claim that “no one is above the law” during that probe now rings hollow as she faces her legal scrutiny. The hypocrisy is almost poetic.
“These baseless and long-discredited allegations,” Lowell said, “are suddenly back in the news just days after President Trump publicly attacked Attorney General James.” He insists the probe is political retribution, but the facts suggest otherwise. Falsifying records isn’t exactly a clerical error.
“This appears to be the political retribution President Trump threatened,” Lowell continued, “that AG Bondi assured the Senate would not occur on her watch.” His attempt to paint James as a victim falls flat when you consider the gravity of the accusations. Crocodile tears won’t erase loan documents.
America First Legal, a Trump-aligned group, piled on by filing a complaint against James with New York’s Committee on Professional Standards on April 24, 2025. They argue that if James deceived lenders, she’s guilty of professional misconduct as a lawyer. The group’s letter pulls no punches, and rightly so.
“If Ms. James has engaged in fraud,” America First Legal stated, “she has violated her obligations as a lawyer and is subject to discipline.”
The complaint underscores the stakes: James’ career could be on the line. It’s a far cry from her days crusading against Trump.
Rep. Elise Stefanik cheered the investigation, calling it “a vital step toward justice.” She vowed to “hold these failed Democrat leaders in NY accountable.” Her enthusiasm reflects a growing sentiment that James’ alleged misdeeds can’t be swept under the rug.
Despite the probe, James was spotted leaving her Fort Greene, Brooklyn home on April 22, 2025, and later appeared at the National Action Network in Harlem on May 3, 2025. At the event, she endorsed Adrienne Adams for New York City mayor, projecting business as usual. The bravado is bold, but the FBI isn’t easily distracted.
Neither the FBI nor the US Attorney’s Office in Albany commented on the investigation when pressed on Thursday. James’ office also clammed up, offering no rebuttal beyond her earlier “baseless” claim. Silence speaks volumes when the feds are circling.