Donald Trump is grinning ear to ear after hearing this news. One of his major adversaries is about to go down in flames.
And this top Trump enemy just turned white as a ghost after what the FBI announced.
Letitia James Faces Mortgage Fraud Investigation
In a stunning development, New York Attorney General Letitia James finds herself at the center of a criminal investigation launched by the FBI and the US Attorney’s Office in Albany. The probe, which focuses on allegations of mortgage fraud, has sent shockwaves through the political landscape, raising questions about integrity, accountability, and the pursuit of justice. A source close to the investigation confirmed to the New York Post that the inquiry is underway, marking a significant turn in James’ tenure as the state’s top legal officer.
The investigation stems from a referral by William Pulte, Director of the Federal Housing Finance Agency, who last month urged the Justice Department to examine James’ financial dealings. The Albany Times Union first broke the story, shedding light on claims that James may have manipulated records to secure favorable loan terms for properties in Virginia and Brooklyn. The case has been assigned to New York’s Northern District, under the leadership of US Attorney John Sarcone III, a known ally of President Trump.
Allegations of Deception
At the heart of the probe are serious accusations detailed in Pulte’s letter to Attorney General Pam Bondi. According to the referral, James allegedly “falsified records” to obtain advantageous loans for a Virginia home purchased in 2023 and a Brooklyn residence she has owned since 2001. Pulte claims James misrepresented the Virginia property as her “principal residence” while serving as New York’s Attorney General and provided inaccurate details about the number of units in her Brooklyn home.
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte wrote. If substantiated, these actions could lead to charges such as wire fraud, mail fraud, bank fraud, or making false statements to a financial institution, carrying significant legal consequences.
Political Firestorm
The investigation has ignited a fierce political debate, with figures like Rep. Elise Stefanik (R), who represents the district where the initiation of the probe occurred, praising the FBI and Albany prosecutors. “The investigation into Letitia James is a vital step toward justice,” Stefanik declared. “I will continue to fight to expose NY corruption, protect constitutional rights, and hold these failed Democrat leaders in NY accountable.” Her remarks reflect the charged atmosphere surrounding the case, as political lines are drawn.
James, a prominent Democrat, has dismissed the allegations as “baseless” and framed the investigation as part of a “revenge tour” orchestrated by President Trump. The Attorney General’s high-profile civil fraud case against Trump and his company, which culminated in a $454 million judgment, has fueled speculation that the current probe is retaliatory. James’ famous assertion, “no one is above the law,” made during her 2019 investigation into Trump, now echoes with irony as she faces scrutiny herself.
Legal Defense and Public Funds
In response to the allegations, the Attorney General’s Office has enlisted Abbe David Lowell, a high-profile attorney known for representing Hunter Biden in his legal battles. Notably, Lowell was retained by the office, not James personally, meaning New York taxpayers will likely cover his fees, per the Times Union.
Reports indicate that Albany Democrats are poised to approve a $10 million fund to cover “any reasonable attorneys’ fees and expenses incurred” by state officials, even for investigations unrelated to their official duties. James’ office confirmed to the New York Post that she intends to draw on both this fund and a private legal defense fund to mount her defense.
Lowell has come out swinging, branding the mortgage fraud claims as a baseless attack rooted in Trump’s vendetta against James. In a scathing letter to Bondi, he argued the allegations lack merit.
A Call for Accountability
The controversy has drawn attention from groups like America First Legal (AFL), a legal watchdog aligned with the Trump administration. Last month, AFL filed a complaint with the New York State Unified Court System’s Committee on Professional Standards, which oversees lawyer conduct. The complaint alleges that if James deceived lenders or the government to secure financial benefits, she violated her ethical obligations as a lawyer. “If Ms. James has engaged in fraud… then she has engaged in professional misconduct and violated her obligations as a lawyer and is subject to discipline by the New York Bar,” the group stated.
What’s Next?
The case promises to be a high-stakes battle, with far-reaching implications for James’ career and the political dynamics in New York. Whether the allegations hold water or prove to be politically motivated, the probe has cast a shadow over James’ tenure and raised pressing questions about trust in public office.
Stay tuned to The Federalist Wire.
