The Federal Bureau of Investigation (FBI) and the U.S. Attorney’s Office in Albany have launched a formal criminal investigation into New York Attorney General Letitia James. The probe centers on allegations that James provided false information on mortgage applications to secure favorable loan terms on properties in Virginia and Brooklyn.
According to multiple sources, the investigation was prompted by a referral from Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump administration appointee. The referral alleges potential violations of federal law, including wire fraud, bank fraud, and making false statements to financial institutions.
At issue is James’s reported claim that a home she purchased in Virginia in 2023 was her primary residence, a declaration that allegedly enabled her to receive more favorable loan terms. However, as New York’s attorney general, James is legally required to maintain her primary residence in New York. Investigators are also reviewing documents related to a Brooklyn property James has owned since 2001, citing discrepancies in occupancy records.
In response to the allegations, James has denied any wrongdoing and characterized the investigation as politically motivated retaliation. “These claims are baseless and clearly intended to distract from the legal accountability others are facing,” a spokesperson for her office said. James previously led a high-profile civil fraud lawsuit against former President Donald Trump, resulting in significant financial penalties, according to reports.
James has retained prominent defense attorney Abbe Lowell, who is also representing President Joe Biden’s son, Hunter Biden, in unrelated federal matters. Reports indicate that her legal fees are being covered through a combination of private contributions and state funds. Notably, a recently passed provision in the New York state budget allows up to $10 million in taxpayer funds to cover legal defense costs for state officials under federal investigation—a measure now drawing increased scrutiny.
As of now, no formal charges have been filed, and the investigation remains ongoing.
