ALBANY, N.Y. (WRGB) — A significant legal storm is brewing for New York Attorney General Letitia James as federal prosecutors have officially opened a criminal investigation into her real estate transactions. This probe, led by the FBI, follows a criminal referral from William Pulte, the director of the Federal Housing Finance Agency (FHFA), who accused James of falsifying bank documents and property records to secure government-backed assistance and favorable loan terms.
The allegations against James surfaced after Pulte alleged in an April letter to U.S. Attorney General Pam Bondi that James misrepresented her primary residence status on a mortgage application for a home in Norfolk, Virginia. This home was reportedly listed as her principal residence despite her position as attorney general in New York. Such misrepresentation could allow borrowers to access lower interest rates typically reserved for primary residences.
James has vehemently denied the allegations, labeling them as "baseless." Her attorney, Abbe Lowell, has characterized the investigation as politically motivated, suggesting it is a retaliation orchestrated by former President Donald Trump, who has been a vocal critic of James since she won a half-billion-dollar civil fraud case against him in 2024. Lowell stated, "This appears to be the political retribution President Trump threatened to exact that AG Bondi assured the Senate would not occur on her watch."
During a media event in Albany, U.S. Attorney John Sarcone declined to provide details about the investigation, stating, "I only know what I've read in the paper or what's been reported in the media." He added, "Whatever's reported in the media is all that my office is aware of," leaving many questions unanswered.
The investigation reportedly began after Pulte's referral, which included claims that James had falsified documents to obtain loans and assistance. It specifically alleges that she misrepresented the number of units in a Brooklyn brownstone she purchased in 2001, claiming it was a four-family property instead of five to meet loan requirements.
In his referral, Pulte noted several instances of alleged misconduct, including a claim that in 1983, James and her father signed mortgage documents stating they were husband and wife, raising further questions about the integrity of her financial dealings. This particular allegation has drawn scrutiny due to its age, but it underscores the seriousness of the claims against her.
Lowell has responded to these allegations by asserting that any discrepancies in James' applications are mere paperwork mistakes, emphasizing that James had informed loan originators that the Norfolk property would not be her primary residence. He stated, "In the hundreds of pages that comprise the Norfolk loan application and other mortgage documents, Director Pulte points to a two-page power of attorney that was clearly mistaken and failed to reference Ms. James' clear and repeated accurate statements."
The political implications of this investigation are profound. James has been a prominent figure in legal battles against Trump, leading a civil suit that accused him of inflating his assets to secure favorable loans and insurance deals. In February 2024, a New York judge ordered Trump and his company to pay approximately $364 million, a figure that has now risen to over $500 million with accumulated interest. Trump has since appealed the ruling, maintaining that the case is a politically charged attack.
Trump's animosity towards James has been evident in his public comments, where he has labeled her a "total crook" and a "disaster for New York." His criticisms intensified following her victory in the civil fraud case against him, and he has repeatedly called for investigations into her conduct. At a recent White House event, he stated, "Pam is going to have to do what she wants. She's a very bad person. She's a very, very bad, a very bad person who campaigned solely on, I'm going to get Donald Trump, over and over again."
As the investigation unfolds, both sides are preparing for a potentially lengthy legal battle. James' office has declined to comment further on the investigation, but her legal team is gearing up to challenge the allegations vigorously. Lowell has indicated that they are ready to counter what they perceive as false claims with factual evidence.
This investigation marks a significant moment in the ongoing tensions between James and Trump, highlighting the intersection of law and politics in the current climate. As both sides prepare for what could be a protracted legal fight, the outcome of this investigation could have lasting implications for James' career and for the broader political landscape.
In the realm of public service and law enforcement, the integrity of officials is paramount. The scrutiny that James is currently facing underscores the critical importance of transparency and accountability in government. Whether the allegations hold merit or are dismissed as political retribution will likely shape the narrative surrounding both James and Trump in the months to come.
As this story develops, many will be watching closely to see how it unfolds and what impact it may have not only on James but also on the broader political discourse as the nation heads into potentially contentious elections.
