FBI & DOJ Launch Formal Investigation into Letitia James Over Alleged Real Estate Scheme
In a stunning turn of events, the FBI and the U.S. Attorney’s Office in Albany have opened a criminal investigation into New York Attorney General Letitia James, focusing on multiple allegations of mortgage and real estate fraud, according to law enforcement sources cited by Times Union.
The probe centers around personal property transactions involving James—including allegedly falsified loan applications, misrepresented property details, and illegitimate residency claims—which could amount to federal mortgage fraud.
Key Allegations: Misrepresentation and Falsified Documents
The Federal Housing Finance Agency (FHFA) referred James to the Justice Department following a review of her real estate dealings. Among the most damning claims:
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James allegedly misrepresented a 5-unit Brooklyn building as a 4-unit property to qualify for conforming loans backed by Fannie Mae/Freddie Mac, which only allow financing for up to 4-unit properties.
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She obtained a Home Affordable Modification Program (HAMP) loan in 2011 under these allegedly false pretenses, saving tens of thousands of dollars annually.
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Official records, including the Certificate of Occupancy, clearly state the Brooklyn building has five units, contradicting what she claimed on mortgage forms for over 20 years.
Virginia Property Raises More Questions
Letitia James is also accused of falsely claiming a Virginia property as her “primary residence”, a move that may have secured her additional loan benefits. According to FHFA Director Bill Pulte, the claim was deceptive and may further bolster the mortgage fraud case against her.
Double Standards in Justice?
Legal experts are already pointing out the irony and hypocrisy in James’ situation. Johnathan Turley remarked:
“This is a person who prosecuted Trump for everything short of ripping a label off a mattress… If we apply the Letitia James Standard she created, there’d be little question here. This seems pretty straightforward.”
James has been at the center of high-profile prosecutions—including her civil suit against Donald Trump—often accusing others of financial misrepresentations. Now, those same allegations appear to apply directly to her own conduct.
1983 Loan Document Raises Even More Eyebrows
Records from the New York City Department of Finance reveal that in 1983, Letitia James and her father, Robert James, took out a real estate loan listed as “husband and wife”—either an inexplicable clerical error or another instance of fraudulent documentation. James’ mother is listed as Nellie James, not Robert’s spouse.
Fallout and What Comes Next
Letitia James has not yet publicly commented on the investigation. The DOJ’s decision to refer the case to the Northern District of New York rather than the Southern District (where the transactions occurred) has raised questions, but officials say the Albany office is leading due to the statewide nature of her role.
If prosecuted, James could face serious federal charges—the very same types she once sought against her political opponents.
This is a developing story. More details to follow as the investigation unfolds.
