The FBI and the U.S. Attorney’s Office in Albany have launched a formal criminal investigation into New York Attorney General Letitia James, following allegations that she falsified mortgage documents to obtain favorable loan terms—potentially violating multiple federal laws.
The probe centers on claims that James misrepresented critical information on mortgage applications tied to properties in both Brooklyn and Norfolk, Virginia. In one instance, she allegedly declared the Virginia property as her “primary residence” in 2023—despite her legal obligation to reside in New York while serving as the state’s top law enforcement official.
The investigation was triggered by a referral from Federal Housing Finance Agency Director William Pulte, who accused James of knowingly submitting false documentation. Investigators are also scrutinizing longstanding discrepancies related to a Brooklyn property James has owned since 2001, including apparent misstatements about the number of residential units on official forms.
Legal experts warn that if the allegations are substantiated, James could face serious federal charges, including wire fraud, bank fraud, and making false statements to financial institutions.
James has fired back, dismissing the investigation as politically motivated retaliation—linking it to her aggressive legal actions against former President Donald Trump, including the civil fraud case that resulted in a massive financial judgment against him earlier this year. Her attorney, Abbe Lowell, claims the accusations are based on document misinterpretations, insisting that the Virginia property in question was intended for her niece—not for James herself.
Still, the growing scrutiny marks a major turning point for a state official who has styled herself as a crusader against corruption. Now, critics say, she may be facing legal consequences for the very kind of misconduct she’s spent years prosecuting.
As the investigation unfolds, the political fallout is likely to intensify, with Republicans demanding full transparency and Democrats facing pressure to distance themselves from one of their own. Whether formal charges are ultimately filed remains to be seen—but the message is clear: no one is above the law, not even the attorney general of New York.