New York Attorney General Letitia James faces serious mortgage fraud allegations as the Federal Housing Finance Agency refers her case to the Department of Justice for potential criminal prosecution.

Top Takeaways

• The Federal Housing Finance Agency (FHFA) has sent a criminal referral to the Department of Justice alleging mortgage fraud by New York Attorney General Letitia James.
• James is accused of misrepresenting property details and falsely claiming her father as her husband on mortgage applications.
• The allegations include potential wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.
• Critics note the irony of these accusations, as James previously prosecuted former President Trump for similar financial misrepresentations.
• James has avoided answering questions about the allegations, while her office stated she “will not be intimidated by bullies.”

Federal Criminal Referral Details Serious Allegations

The Federal Housing Finance Agency has sent a criminal referral to the Department of Justice accusing New York Attorney General Letitia James of mortgage fraud. FHFA Director William Pulte claims James falsified records on multiple properties to secure favorable loan terms. The accusations include misrepresenting a Virginia property as her principal residence and incorrectly listing a New York property as having four units instead of five. These allegations could potentially lead to charges of wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.

According to documents cited in the referral, James allegedly listed her father as her spouse on property documents from 1983 and 2000. “Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” stated Pulte in his referral letter.

The mortgage fraud accusations against NYS AG Letitia James are serious and cannot be written off as politically motivated. Here’s the roadmap why – having covered corporate accounting scandals, taxes and the IRS, the details here are pretty overwhelming. Again, these are… pic.twitter.com/H2jPCXXHN3

— Elizabeth MacDonald (@LizMacDonaldFOX) April 16, 2025

Ironic Echoes of James’ Case Against Trump

The allegations against James have drawn immediate comparisons to her own prosecution of President Donald Trump. James previously brought a high-profile civil fraud suit against Trump and his organization in 2022, resulting in a $454 million judgment currently under appeal. Legal experts have pointed out the parallel circumstances between the cases, both involving alleged misrepresentations to financial institutions.

“This is a person who prosecuted Trump for everything short of ripping a label off a mattress, and among the charges that were brought in New York, in just the civil but the criminal case, was making false or misleading statements to financial institutions. As for James, if we apply the Letitia James standard that she created, there’d be little question here. This seems pretty straightforward,” said Fox News contributor Jonathan Turley.

President Trump has publicly called for James’ resignation, writing: “Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY. Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office.” Critics of the attorney general have suggested these allegations undermine her credibility, particularly given her frequent assertion that “no one is above the law.”

James Avoids Questions As Investigation Develops

When confronted by reporters outside her Brooklyn home, James notably avoided answering questions about the mortgage fraud scandal. According to reporting by the New York Post, the attorney general pretended to be on a phone call when approached for comment. This comes as a significant development for James, who has led multiple legal actions against the Trump administration in 2025, including lawsuits related to federal government actions and funding cuts.

“The documents presented by Sam Antar, and the research he has done, appear entirely authentic. In which case, AG James appears to have engaged in the very sort of fraud which she alleged in her ludicrous case against Donald Trump. Let’s see now, if indeed, as AG James has stated herself, nobody is above the law,” said Retired NYPD Inspector and Fox News contributor Paul Mauro.

In response to the allegations, a spokesman from James’ office stated, “Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies — no matter who they are.” The Department of Justice has not yet responded to the referral or indicated whether a formal investigation will be launched. Legal analysts suggest the situation could have significant political and legal implications for James, particularly given her high-profile position and previous actions against Trump.