Overview

• The FBI and U.S. Attorney’s Office in Albany have opened a criminal investigation into New York Attorney General Letitia James for alleged mortgage fraud involving properties in Virginia and Brooklyn.
• The allegations, based on a referral from FHFA Director William Pulte, claim James misrepresented residency and property details to secure favorable mortgage terms.
• Federal prosecutors have impaneled a grand jury in Maryland as part of the investigation, which is still in its early stages.
• New York's state budget includes a $10 million legal defense fund for state officials facing federal probes, a move criticized by Republicans as a misuse of taxpayer money.
• James denies the accusations, calling them politically motivated retribution tied to her prior legal actions against Donald Trump, including a high-profile civil fraud case.