Overview

• The FBI has formally opened a criminal investigation into New York Attorney General Letitia James over allegations of falsifying records to secure favorable mortgage terms for properties in Virginia and Brooklyn.
• The investigation stems from a referral by Federal Housing Finance Agency Director William Pulte, alleging James misrepresented her residency and property details to obtain government-backed loans.
• James has denied any wrongdoing, calling the allegations politically motivated retribution tied to her legal actions against Donald Trump, including a $454 million fraud judgment against him in 2024.
• New York's state budget draft, expected to pass soon, includes a provision for a $10 million legal defense fund for state officials, which could be used by James to cover her legal expenses.
• James has hired high-profile attorney Abbe Lowell and plans to fund her defense through both private donations and the state-provided legal fund.