New York Attorney General Letitia James accused of possible mortgage fraud

New York Attorney General Letitia James has been referred for federal criminal prosecution for alleged mortgage fraud related to a Virginia home and a New York property.

William Pulte, director of the Federal Housing Finance Agency (FHFA), wrote a letter obtained by CBS News New York to U.S. Attorney General Pam Bondi alleging that James “has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms.”

Details of the allegations

Pulte alleges James may have falsified her residence status at a home in Norfolk, Virginia, to get a better mortgage rate.

According to Pulte, in 2023 James granted Shamice Thompson-Hairston power of attorney to make the Norfolk property, purchased in August of that year, her “principal residence,” despite James actually living and serving as attorney general in New York at the time.

“At the time of the 2023 Norfolk, VA property purchase and mortgage, Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA property as her primary home,” Pulte wrote.

Pulte also alleges James bought a five-family property in Brooklyn in 2001 with a loan that is only available for homes with four units or less.

“Spanning the last two decades, Ms. James has consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” Pulte wrote. “It appears that Ms. James may have listed the Brooklyn, NY property as four units instead of five units in order to meet the conforming loan requirements, and thus receive better interest rates.”

It’s also alleged James and her father signed mortgage documents in 1983 stating they were husband and wife.

“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 concluded, adding that it could lead to charges such as wire fraud, mail fraud and bank fraud, along with making false statement to a financial institution.

Bondi said she was aware of the referral and will be reviewing it.

James responds to 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,” a spokesperson for the New York attorney general’s office said.

James went after Trump over fraud allegations

In 2022, James sued Donald Trump for years of alleged financial fraud, claiming Mr. Trump and his family participated in a conspiracy to inflate his net worth by billions of dollars in order to secure better loan rates, among other things. A judge found them liable and ultimately ruled Trump and the Trump Organization must pay $354 million in fines, though the actual total recently climbed to above $500 million due to interest while he appeals.

“He said he was going to go after his enemies. He’s declared he’d be going after his enemies, and he’s finally gotten down to maybe the J’s on his list – Tish James. He’s going to keep going,” Gov. Kathy Hochul said. “I’m going to allow her to have a chance to explain all this.”

Legal expert on the allegations

“[James] has built her entire career on exposing deception. So right now it’s a very problematic situation for her because she’s being accused of the same acts that she accused Trump of, and I think there’s a high probability they will go after her. Civil fraud is when you sign a declaration or make any statements to obtain some favorable outcome, some benefits of any type. So in this particular case, it would be more favorable mortgage terms. If that is proved, then that constitutes civil fraud,” legal expert Nicole Brenecki said.

Brenecki said, however, there are statutes of limitations in cases of fraud.

“I think that is why that last instance where she allegedly declared her husband, her father, her husband, that was mentioned the last in the letter, because it’s just, I think, inflammatory at this point, because it was so long ago,” Brenecki said.

James has not been charged with anything.