Trump administration seeking criminal prosecution against Letitia James for mortgage fraud

 April 18, 2025

The Trump administration has launched a bold move against New York Attorney General Letitia James, accusing her of mortgage fraud and seeking her criminal prosecution.

The BBC reported that the Federal Housing Finance Agency (FHFA) alleged James falsified property records to secure favorable loan terms, prompting a referral to the Justice Department. No charges have been filed, but the accusations have ignited a firestorm of controversy.

In 2023, James led a high-profile civil case against President Donald Trump, accusing him of inflating property values to obtain better loan and insurance terms.

The Trump Organization was found liable, with a judge ruling that a penthouse at Trump Tower was misrepresented as three times its actual size. Trump was ordered to pay over $350 million in damages, a judgment he is currently appealing.

James’ office has fired back, accusing the Trump administration of weaponizing the federal government to target political adversaries. A spokesperson for James declared that she remains focused on protecting New Yorkers and will not be intimidated by what they call bullying tactics.

Allegations Of Mortgage Fraud Surface

FHFA Director William Pulte, in a letter to U.S. Attorney General Pam Bondi, detailed the allegations against James. He claimed James misrepresented a New York building as a four-unit structure instead of five to secure a better loan deal. Pulte further alleged that James listed a Norfolk, Virginia, property as her primary residence in 2023 to obtain a lower interest rate.

Mortgages for primary residences typically come with more favorable terms, giving weight to the FHFA’s accusations. However, as New York’s attorney general in 2023, James was legally required to maintain her primary residence in New York. The discrepancy in her mortgage applications has raised serious questions about her conduct.

Trump, never one to shy away from confrontation, took to Truth Social on Monday to denounce James. He called her a “wacky crook” and demanded her immediate resignation. His post reflects the personal animosity that has defined their legal battles.

The 2023 civil case brought by James was a significant blow to the Trump Organization. The court found that Trump and his company falsified records and financial statements to secure advantageous loan and insurance terms. Trump frequently attacked James during the case, labeling her “biased and corrupt.”

In a separate criminal case, Trump was convicted on 34 counts of falsifying business records related to a hush-money payment to Stormy Daniels. This conviction, led by Manhattan District Attorney Alvin Bragg, further intensified Trump’s resolve to confront his legal adversaries. James and Bragg both had their security clearances revoked by Trump, signaling his aggressive stance.

During his campaign, Trump vowed to seek retribution against political enemies, including former President Joe Biden and others who opposed him.

His administration has already taken action against prosecutors tied to special counsel Jack Smith, firing several involved in criminal probes against him. Law firms connected to former special counsel Robert Mueller have also faced repercussions.

James’ Office Responds Defiantly

A spokesperson for James emphasized her commitment to her duties, stating, “She will not be intimidated by bullies-no matter who they are.”

The spokesperson accused the Trump administration of undermining the rule of law and the Constitution. This defiant response highlights the escalating tensions between James and the White House.

No charges have been filed against James, and the White House has confirmed this, noting that more details will emerge if the Justice Department acts. The absence of formal charges has led some to question whether the allegations are politically motivated. James’ office remains steadfast, framing the accusations as an attack on her integrity.

The FHFA’s claims hinge on specific allegations about James’ mortgage applications. Pulte’s letter pointed to the Norfolk, Virginia, property, which James allegedly claimed as her primary home despite her legal obligations in New York. This detail has fueled speculation about potential ethical violations.

Trump’s actions against James, Bragg, and others suggest a broader strategy to target perceived adversaries within the legal system. His revocation of security clearances and firing of prosecutors indicate a willingness to use executive power decisively. These moves have sparked concerns about the politicization of justice, even among some conservatives.

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