| Published April 16, 2025
In a stunning development, the Trump administration has formally referred New York Attorney General Letitia James to the Department of Justice for possible criminal prosecution over alleged mortgage fraud — a move that dramatically escalates the legal and political feud between the two camps.
The referral, initiated by the Federal Housing Finance Agency (FHFA), centers on accusations that James misrepresented key details about a Brooklyn property she owns. According to documents reviewed by officials, James allegedly claimed the building had four residential units instead of five, allowing her to qualify for a more favorable mortgage and secure government-backed benefits under programs like the Home Affordable Modification Program (HAMP).
“This is a serious matter involving potential fraud and abuse of federal housing programs,” FHFA Director William Pulte said in a statement released Tuesday. “We have referred the matter to the Department of Justice for further investigation and possible charges.”
The Brooklyn home James is accused of misrepresenting for a lower mortgage rate.
Multiple Properties Under Scrutiny
In addition to the Brooklyn property, James is also facing scrutiny over a Virginia property she reportedly designated as her primary residence — a claim the FHFA suggests may not be true.
“Evidence indicates she did not actually reside in the property,” said an official familiar with the investigation. “This could represent another instance of misrepresentation to obtain homeowner benefits.”
The allegations, if proven true, could result in serious legal consequences, including potential felony charges tied to mortgage fraud, misuse of federal programs, and false declarations.
Political Firestorm Brewing
The timing of the referral is impossible to ignore. Letitia James has long been a political nemesis of Donald Trump. As New York’s top prosecutor, she led high-profile investigations into the Trump Organization and was central to civil fraud lawsuits that resulted in massive financial penalties against Trump and his business empire.
With Trump now back in the White House, critics are sure to label the move as politically motivated — while supporters argue it’s long-overdue accountability for someone they say has abused her position for partisan purposes.
James has so far not publicly responded to the allegations but has previously vowed to continue pursuing legal action against Trump, despite his reelection.
“I will never back down from holding powerful people accountable — no matter who they are or how much power they think they have,” James said in a recent interview.
DOJ Yet to Respond
As of Wednesday morning, the Department of Justice has not issued any public response regarding the referral. Whether the DOJ will take up the case remains to be seen — but the political implications are already reverberating through Washington and New York alike.
What Comes Next?
This case, if pursued, could mark one of the most high-profile legal confrontations between a sitting president and a state attorney general in modern history. Supporters of both sides are bracing for what could be a drawn-out legal and political battle — with 2026 midterms already on the horizon.
SOURCES: THE GATEWAY PUNDIT – Trump Administration Criminally Refers NY AG Letitia James to Justice Department for Mortgage Fraud as First Reported on The Gateway Pundit
THE NEW YORK POST – Trump administration refers NY AG Letitia James for potential prosecution over alleged mortgage fraud
TOWNHALL – NY AG Letitia James Might Be Charged With Mortgage Fraud
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