The Trump administration has referred New York Attorney General Letitia James for criminal prosecution, accusing her of mortgage fraud related to property purchases dating back decades. According to documents obtained by Fox News, the Federal Housing Finance Agency (FHFA) sent a criminal referral to the Department of Justice, addressed to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche. FHFA Director William Pulte alleged that James falsified records to secure favorable loan terms for two properties. The first involves a Virginia property James allegedly claimed as her principal residence in 2023, despite serving as New York’s attorney general, a role requiring New York residency. The second concerns a Brooklyn property purchased in February 2001, which James reportedly misrepresented as a four-unit dwelling instead of a five-unit structure in mortgage and permit applications, potentially allowing her to obtain more favorable loan terms. Legal analyst Jonathan Turley, speaking on Fox News’ The Ingraham Angle, described the allegations as “perfectly crushing” given James’ history of prosecuting Trump for similar financial misconduct. “This is a person who prosecuted Trump for… making false or misleading statements to financial institutions,” Turley said. “If we apply the Letitia James standard that she created, there’d be little question here.” He noted that the Supreme Court’s March 2025 ruling in Thompson emphasized the need for “knowing false statements” in such cases, adding that the documents appear “quite damning.” James has been a prominent adversary of Trump, leading a 2022 civil fraud lawsuit against him, the Trump Organization, and his adult children, which resulted in a $454 million judgment currently under appeal. She also celebrated Trump’s 2024 conviction on 34 counts of falsifying business records in a Manhattan criminal trial. In 2025, James has initiated at least five legal actions against the Trump administration, including lawsuits challenging the administration’s decision to restrict grant funding to universities and to limit the Department of Government Efficiency (DOGE)’s access to Treasury Department systems. The allegations, if pursued, could lead to charges such as wire fraud, mail fraud, bank fraud, or making false statements to financial institutions. (YWN World Headquarters – NYC)
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