In a dramatic escalation of their ongoing feud, New York Attorney General Letitia James has been referred for criminal prosecution by a top housing official in President Donald Trump’s administration. This referral comes from Federal Housing Finance Agency Director William Pulte, who alleges that James may have committed mortgage fraud in connection with two properties she owns, one in Virginia and the other in Brooklyn, New York.
The allegations against James have sparked a fierce backlash from her allies, who accuse Trump of using the justice system as a weapon against his political adversaries. James, a prominent critic of Trump, has previously won a significant civil fraud case against him, resulting in a $454 million judgment for inflating the value of his assets to secure better loan terms.
In a letter dated April 14, 2025, Pulte argued that James had “falsified records” to obtain favorable mortgage terms. He pointed to a 1,450-square-foot home in Norfolk, Virginia, where James co-signed a $219,780 mortgage with her niece in 2023. Pulte claims that James misrepresented her intent to occupy the property as her principal residence, which would be a violation of mortgage regulations.
Additionally, Pulte's letter accused James of understating the number of units in her Clinton Hill brownstone, which she has listed as a four-unit property. However, a 2001 certificate of occupancy indicates that it is a five-unit building. Pulte suggested that these misrepresentations could have enabled James to secure lower interest rates on her loans.
James has vehemently denied the allegations, labeling them as “baseless” and part of a “revenge tour” orchestrated by Trump. “The allegations are nothing more than a headline, nothing more than retaliation against all the actions I have taken successfully against Donald Trump,” she stated in an interview with NY1. James emphasized that she will not litigate the case in the media, but will respond appropriately at the right time.
In her defense, James pointed out that the mortgage documents for the Virginia property include a clause allowing the lender to waive the requirement for the borrower to occupy the property if it would cause undue hardship. Furthermore, her office provided a partial copy of a loan application where James indicated she did not intend to occupy the Virginia home as her primary residence.
Legal experts have weighed in on the situation, noting that the claims against James are complex and require further investigation. Natalia Sishodia, a Manhattan-based real estate attorney, remarked that the seriousness of the matter hinges on whether James or her family member benefited from the alleged misrepresentations. “If it led to some benefit, then it could be potential fraud because no one can provide untruthful information on the mortgage documents,” she explained.
James has maintained that her Brooklyn property has always been a four-unit, owner-occupied building, and that the discrepancies in unit counts stem from records filed by previous owners. Her office noted that city finance records classify the building as a four-unit property, despite the older certificate of occupancy listing it as having five units.
The political implications of this feud are significant. James has been a thorn in Trump’s side since she took office, launching multiple investigations into his business practices. The attorney general’s office is currently engaged in legal battles against several executive orders issued by Trump since he returned to the White House in January 2025.
New York City Council Speaker Adrienne Adams, a supporter of James, defended her against the allegations, stating, “Letitia James has spent her career standing up to powerful interests and fighting for everyday New Yorkers. Now she’s being targeted by a president who abuses the power of the federal government to go after his enemies.”
Trump has not held back in his criticism of James, posting on his Truth Social platform that she is a “totally corrupt politician” who should resign immediately. He has consistently accused her of pursuing him for political purposes, a claim that has been echoed by his allies.
The backdrop to this conflict is a series of legal confrontations that began in 2018 when James pledged to investigate Trump during her campaign for attorney general. Since then, she has pursued numerous cases against him, including a civil lawsuit that resulted in the hefty penalty for fraud.
As the situation unfolds, James remains steadfast in her commitment to her role as attorney general. “I will not be silenced. I will not be bullied. I will not bend, I will not break, and I will not bow to anyone,” she declared. The coming weeks are likely to see further developments in this contentious legal battle, as both sides prepare for what promises to be a high-stakes confrontation.
