New York Attorney General Letitia James, who once proudly proclaimed that “no one is above the law,” got some very bad news on Tuesday — James has been referred to the Department of Justice for potential prosecution on mortgage fraud charges.
Federal Housing Finance Agency (FHFA) Director William Pulte sent the criminal referral letter to Attorney General Pam Bondi and Deputy AG Todd Blanche on Tuesday, alleging that James “falsified records” to secure favorable loan terms on multiple properties.
The referral comes less than a year after James won a $454 million civil fraud judgment against President Donald Trump and the Trump Organization for inflating property values to obtain better loan terms.
Pulte’s letter outlines three specific allegations against James. First, she allegedly claimed a Norfolk, Virginia property as her “principal residence” in mortgage applications filed in August 2023, despite being required by law to maintain her primary residence in New York as the state’s attorney general.
According to the documents, James granted power of attorney to a relative, Shamice Thompson-Hairston, to sign the August 17, 2023 purchase authorization for the Virginia property. She secured a $218,780 mortgage in the transaction.
The second allegation involves a five-family dwelling in Brooklyn that James purchased in February 2001. Pulte claims she “consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications.”
This could have reduced James’ mortgage interest rate by as much as 1% and provided lower monthly payments under the federal Home Affordable Modification Program, according to the referral.
The third allegation dates back to 1983 and 2000, when James allegedly purchased property with her father as a co-signer but falsely listed the pair as “husband and wife” on mortgage documents.
“While this was a long time ago, it raises serious concerns about the validity of Ms. James’ representations on mortgage applications,” Pulte wrote.
James could face criminal charges including wire fraud, mail fraud, bank fraud, and making false statements to a financial institution.
“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 stated in the referral.
A spokesperson for James’s office fired back against the allegations.
“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 commented on whether it will pursue an investigation based on the referral.
George Washington University law professor Jonathan Turley pointed out to Fox News that the allegations against James mirror those she brought against Trump.
“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,” Turley said. “As for James, if we apply the Letitia James standard that she created, there’d be little question here. This seems pretty straightforward.”
James’ office has led five legal actions against the Trump administration in 2025 alone. Trump has repeatedly criticized James on social media and blasted the recent allegations.
“Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY,” he wrote Monday.