New York Attorney General Letitia James is currently under investigation by the Justice Department for her real estate transactions, marking the first known criminal probe of a law enforcement official who has taken action against former President Donald Trump. Sources familiar with the case indicate that a grand jury in the Eastern District of Virginia has issued subpoenas related to a mortgage application in which James claimed she intended to make a single-family home in Norfolk her primary residence.
According to documents reviewed by The Washington Post, James’s signature is present on a two-page power of attorney document that grants her niece, Shamice Thompson-Hairston, the authority to execute the purchase. This investigation unfolds amidst a backdrop of legal battles where James has collaborated with other Democratic state attorneys general to file lawsuits against both Trump administrations, successfully halting several of the president’s significant initiatives.
The scrutiny of James’s real estate dealings follows a criminal referral from William J. Pulte, the director of the U.S. Federal Housing Finance Agency, who was appointed by Trump. Pulte's referral alleges that James “falsified bank documents and property records to acquire government-backed assistance and loans,” as well as more favorable loan terms. Citing various media reports, Pulte accused James of misrepresenting her primary residence status on the loan document while serving as New York’s attorney general.
Moreover, the letter from Pulte claims that James misrepresented the number of units in a brownstone she has owned in Brooklyn since 2001. James’s attorney, Abbe Lowell, responded by asserting that any discrepancies in the documentation were merely administrative errors and characterized the criminal referral as an act of political retribution orchestrated by Trump.
Pulte’s letter indicated that James may have violated several federal laws, including a statute that makes it illegal to provide false claims to mortgage lenders. He highlighted that mortgages for primary residences typically offer more favorable loan terms compared to those for secondary residences. In a related case, the former Democratic state’s attorney in Baltimore, Marilyn Mosby, faced conviction under the same statute last year.
In defense, Lowell pointed out that Pulte had “cherry-picked” a single mistake from a comprehensive application package, arguing that numerous other documents clearly stated James’s intention not to reside in the Norfolk home. “Director Pulte ... absolutely ignored her very clear and all caps statement two weeks earlier,” Lowell emphasized, stating that the property would be used as her niece’s primary residence.
The ongoing investigation highlights the long-standing tensions between Trump and James, who has relentlessly pursued legal actions against him. James has been a central figure in lawsuits challenging various policies from the Trump administration, including attempts to eliminate school grants and end birthright citizenship. Additionally, she successfully obtained a judgment against Trump and the Trump Organization totaling hundreds of millions of dollars for fraudulent business practices.
New York Supreme Court Justice Arthur Engoron noted in a recent decision that Trump and his executives utilized “blatantly false financial data” in dealings with lenders and insurers. This legal battle, which spanned 11 weeks, saw Trump and his supporters vocally criticize James and her efforts.
Trump's animosity towards James has not diminished; in March, he ordered federal agencies to revoke her security clearance. In a recent directive to her staff, Attorney General Pam Bondi established a “weaponization working group” aimed at investigating claims of politicized justice during President Joe Biden's administration, specifically naming James and Manhattan District Attorney Alvin Bragg.
As this investigation progresses, it highlights the complexities of political and legal interactions in today’s climate, especially regarding prominent figures in government. The outcomes of these proceedings could have significant implications for both James and Trump as they continue to navigate their contentious relationship.
