WASHINGTON — New York Legal professional Common Letitia James was hit with a federal prison referral for cases of alleged mortgage fraud on Tuesday, in keeping with a letter obtained by The Submit.
Federal Housing Finance Company (FHFA) Director William Pulte despatched the missive to Legal professional Common Pam Bondi and Deputy AG Todd Blanche, alleging that James had “falsified information” to get dwelling loans for a property in Virginia that she claimed was her “principal residence” in 2023 — whereas nonetheless serving as a New York state prosecutor.
That occurred in late August 2023, weeks earlier than James started her civil fraud trial towards the Trump Group for over-inflating the values of lots of its properties, which led to a $454 million judgment.
In February 2001, James additionally bought a five-family dwelling in Brooklyn — however has “constantly misrepresented the identical property as solely having 4 models in each constructing allow purposes and quite a few mortgage paperwork and purposes,” the letter famous.
Pulte hooked up a number of paperwork additionally displaying that James bought one other property together with her father as a co-signer — however falsely listed the pair as “husband and spouse” in 1983 and 2000.
“Whereas this was a very long time in the past, it raises severe considerations in regards to the validity of Ms. James representations on mortgage purposes,” he wrote.
“Legal professional Common James is concentrated each single day on defending New Yorkers, particularly as this Administration weaponizes the federal authorities towards the rule of regulation and the Structure. She is not going to be intimidated by bullies — regardless of who they’re,” a spokesman for the Workplace of the Legal professional Common mentioned in an announcement.
The letter referenced earlier media reviews about purportedly falsifying her residence standing to get a decrease mortgage fee in Virginia and misrepresenting her five-unit residence in Brooklyn, that had been first reported by the outlet White Collar Fraud.
James granted energy of legal professional to Shamice Thompson-Hairston, a relative, to signal an Aug. 17, 2023, doc authorizing the acquisition of the primary property, in keeping with authorized filings reported by the outlet.
She secured a $218,780 mortgage to take action.
Loans secured for the latter property might have diminished her mortgage rate of interest by as a lot as 1% and had decrease month-to-month funds beneath the federal Residence Help Modification Program (HAMP) because it was listed as containing simply 4 models, in keeping with Pulte.
“Ms. James, for each properties listed above, seems to have falsified information in an effort to meet sure lending necessities and obtain favorable mortgage phrases,” he instructed Bondi and Blanche.
That might quantity to prison prices, together with wire fraud, mail fraud, financial institution fraud and false statements to a monetary establishment, amongst others, Pulte added.
The prison referral dropped the identical day James’ workplace confirmed it was preliminarily scrutinizing whether or not insider buying and selling was in play relating to the 90-day pause President Trump placed on “reciprocal” tariffs final week.
It isn’t but a full-fledged probe, the AG’s workplace instructed The Submit earlier Tuesday. It isn’t clear if there are particular folks or firms which can be being reviewed.
Trump declared on Reality Social that it was a “GREAT TIME TO BUY” simply earlier than the US markets opened on April 9 — as indexes had been in a free fall over tariff uncertainty. He later introduced he was suspending custom-made charges whereas conserving a ten% baseline responsibility in impact on most imports.
Trump has lashed out at James since returning to the White Home, posting on his Reality Social Monday: “Letitia James, a completely corrupt politician, ought to resign from her place as New York State Legal professional Common, IMMEDIATELY.”
“Everyone seems to be making an attempt to MAKE NEW YORK GREAT AGAIN, and it could by no means be completed with this wacky criminal in workplace,” he added.
The Justice Division didn’t instantly reply to a request for remark.
