On May 8, 2025, the U.S. Department of Justice announced that it has opened a criminal investigation into New York Attorney General Letitia James, focusing on allegations of mortgage fraud related to her personal real estate dealings. The investigation, being led by the FBI and taking place in Virginia, examines whether James misrepresented her primary residence in order to obtain favorable loan terms for a property in Norfolk, Virginia, in 2023. Additionally, the inquiry includes allegations that James inaccurately reported the number of units in a Brooklyn property to secure better financing.
The allegations were brought forward by William Pulte, Director of the Federal Housing Finance Agency, a Trump appointee. James, who is known for her high-profile civil fraud lawsuit against former President Donald Trump, resulting in a $454 million judgment, has strongly denied the accusations, calling them politically motivated. Her attorney, Abbe Lowell, contends that any discrepancies were merely clerical errors and that the claims are without merit.
This investigation has sparked significant political controversy, with many questioning the ethical implications of a public official’s personal financial dealings. The case raises questions about the intersection of personal finances and public service, particularly when those involved hold influential positions.
As the investigation continues, it remains unclear how this will affect James’s position as New York’s top law enforcement official, or the wider political landscape.
