Investigation follows April referral by FHFA Director Bill Pulte; potential charges include wire, mail, and bank fraud
The U.S. Department of Justice (DOJ) has launched a formal criminal investigation into New York Attorney General Letitia James, according to multiple published news reports.
The probe, which became public Thursday, May 8, follows an April referral from Federal Housing Finance Agency (FHFA) Director William Pulte, who cited alleged mortgage application fraud involving James’ properties in Norfolk, Virginia and Brooklyn, New York.
Key Allegations In FHFA Letter
- Virginia Property: James is accused of falsely claiming a Norfolk, Virginia home as her primary residence in 2023 to secure better mortgage rates, despite her official residence being in New York. A power-of-attorney document signed by James granted her niece authority to execute the purchase, listing the property as James’s principal residence.
- Brooklyn Property: FHFA alleged that James misrepresented a five-unit Brooklyn brownstone as a four-unit property to qualify for a loan intended for smaller multifamily homes, and claimed this happened multiple times dating back to the early 2000s. That misrepresentation could have gained her access more favorable loan terms, according to FHFA.
- Mortgage Document: An additional claim involves a 1983 mortgage document where James and her father allegedly signed as husband and wife, potentially to meet lending requirements. The two also listed themselves as married in documentation 17 years later in May 2000, FHFA alleged.
Legal Implications
Now it all depends where the DOJ’s investigation leads. If substantiated, these allegations could lead to charges such as wire fraud, mail fraud, bank fraud, and making false statements to financial institutions, according to multiple news outlets. Each of those federal offenses carries significant penalties, including large fines and potential imprisonment…