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2d ago

FBI Opens Criminal Investigation Into New York AG Letitia James Over Mortgage Fraud Allegations

Federal authorities are probing claims that James falsified records for favorable loan terms, as New York lawmakers propose taxpayer funding for her legal defense.

New York Attorney General Letitia James speaks during a news conference outside Manhattan federal court in New York on Friday, Feb. 14, 2025.
NEW YORK, NEW YORK - FEBRUARY 14: NY Attorney General Letitia James speaks as Connecticut Attorney General William Tong (L) listens on during a press conference on the Department of Government Efficiency (DOGE) at Manhattan Federal Courthouse on February 14, 2025 in New York City. James was joined by Tong for a press conference ahead of a scheduled court hearing as they discussed their ongoing lawsuit with 17 other state attorneys general to stop Elon Musk’s DOGE from accessing personal data housed in the Treasury Department. (Photo by Michael M. Santiago/Getty Images)
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New York State Attorney General Letitia James attends the National Action Network National Convention in New York City, U.S., April 4, 2025. REUTERS/Shannon Stapleton/File Photo

Overview

  • The FBI and U.S. Attorney’s Office in Albany have launched a formal criminal investigation into New York Attorney General Letitia James, following a referral by FHFA Director William Pulte.
  • Allegations include misrepresenting a Virginia property as her primary residence and misstating unit counts for a Brooklyn brownstone to secure better loan terms.
  • A grand jury in the Eastern District of Virginia has issued subpoenas as part of the investigation, signaling an escalation in the probe.
  • James, who denies any wrongdoing, has characterized the allegations as politically motivated retaliation tied to her legal battles with Donald Trump.
  • New York Democrats have proposed a $10 million legal defense fund in the state budget, which could cover James’s legal expenses, drawing criticism from Republicans.