New York Attorney General Letitia James is facing investigations following a federal referral for possible criminal prosecution over alleged mortgage fraud involving properties in Virginia and Brooklyn, CBS News reported over the weekend.
William Pulte, Director of the Federal Housing Finance Agency, wrote a letter obtained by CBS News New York to US 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 favourable loan terms.”
According to the letter, James may have falsified her principal residence in order to obtain lower mortgage rates on a home acquired in Norfolk, Virginia, in 2023.
According to the letter, James granted Shamice Thompson-Hairston power of attorney to make the property her “principal residence”, despite the fact that her position as New York attorney general requires her to live in-state.
“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 cited a Brooklyn property James purchased in 2001, claiming she misrepresented the building as having four apartments, the maximum allowed under certain lending programmes, when it fact had five.
The difference, according to the letter, may have allowed James to qualify for reduced interest rates.
Another accusation related to a 1983 mortgage contract, which she and her father supposedly signed as husband and wife.
Pulte determined that the conduct, if proven, might lead to accusations of wire fraud, mail fraud, bank fraud, and making false claims to a financial institution. Bondi acknowledged receipt of the referral and said that her office would review it.
“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.
“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,” Pulte said.
In reaction, a spokesperson for the New York attorney general’s office stated, “Attorney General James is focused every single day on protecting New Yorkers, especially as this administration weaponises the federal government against the rule of law and the Constitution.
“She will not be intimidated by bullies, no matter who they are.”
James later went on NY1, calling the claims “baseless” and part of a “revenge tour”, implying that the referral was political reprisal for her high-profile lawsuit against former President Trump.
In 2022, James led a civil lawsuit that found Trump and his company guilty of fraud, with penalties amounting to more than $500 million after interest.
Governor Kathy Hochul remarked on the incident, saying she should be given the opportunity to reply to the claims.
“He said he was going to go after his enemies… And he’s finally gotten down to maybe the J’s on his list — Tish James,” Hochul said.
Legal expert Nicole Brenecki emphasised the gravity of the allegations, stating that James might face civil fraud charges if the allegations are proven. However, she also stated that statutes of limitations may limit the relevance of previous charges, such as the 1983 paper.
At the time of filing this report, she has yet to be formally charged with any crime.
