A high-ranking official from former President Donald Trump’s administration has referred New York Attorney General Letitia James for criminal prosecution, intensifying an already contentious relationship.This move has prompted accusations from James’ allies that Trump is engaging in political retaliation.

The Referral: A Closer Look

William Pulte, director of the Federal Housing Finance Agency, sent a letter to the U.S. Department of Justice, alleging that James, a Democrat who has been a vocal critic and legal opponent of Trump, his family, and their businesses, may have committed fraud. The accusations center around two properties owned or co-signed by James.

The Properties in Question

• Norfolk, Virginia Property: James co-signed a $219,780 mortgage in 2023 for a 1,450-square-foot, three-bedroom home with her niece.The mortgage documents included a notarized statement declaring her intent to occupy the property as her primary residence.
• Brooklyn Brownstone: Pulte’s letter claims James understated the number of units in her Clinton Hill brownstone. While various forms list it as a four-unit property, a 2001 certificate of occupancy indicates it has five units.

Pulte suggests these alleged discrepancies could have allowed James to secure lower interest rates on her property loans, possibly constituting fraud. Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms, Pulte wrote.

James’ Response: “Baseless” and “Revenge Tour”

James’ office has vehemently denied any wrongdoing, accusing the Trump administration of weaponizing the federal government and using cherry-picked facts to target her. The allegations are baseless, James said in an interview with NY1. The allegations are nothing more than a revenge tour.

Her office maintains that she has always represented her Brooklyn property as a four-unit, owner-occupied building, and that the 2001 certificate of occupancy was filed by a previous owner. City finance records also classify the building as a four-unit property, despite the Department of Buildings listing five units, including two on the top floor.

Regarding the Virginia property, James’ office confirms that her niece occupies the home. The mortgage documents stipulate that the borrower must establish the property as their principal residence within 60 days and continue to occupy it for at least a year. However,the lender can waive this requirement if it causes undue hardship or if there are extenuating circumstances.

Legal Perspectives: Complex and Requires More Information

Real estate attorneys suggest the situation is complex and requires further inquiry. Natalia Sishodia, a Manhattan-based real estate attorney, found it surprising that James would sign a document claiming the Virginia property as her primary address, given her position. However, she emphasized that the severity of the matter hinges on whether James or her family member received a tangible benefit, such as a lower mortgage rate.

I would want to know what benefit she actually received by providing the wrong information on the mortgage document. if it led to some benefit, then it could be potential fraud because no one can provide untruthful information or false information on the mortgage documents.
Natalia Sishodia,Manhattan-based Real Estate Attorney

Michael J. Fichera Jr., a partner at Avenue Law Firm, believes James’ signature on the Virginia mortgage document is a more salient issue than the Brooklyn unit count. If the allegations are correct, and we have to take everything with a grain of salt, it could be a legitimate issue for her, Fichera said.If you’re buying something as an investment, your loan terms are different and your rates are higher. He added that if James’ niece resides at the Virginia property, it could serve as a valid defense.

Political Retribution? A History of Conflict

James and her allies argue that this referral is politically motivated. The attorney general and Trump have been at odds since at least 2018, when James pledged to investigate Trump and his New York-based business during her campaign for attorney general. She subsequently brought numerous cases against Trump and his business, including a civil case where a judge ordered Trump to pay over $450 million in penalties for inflating his net worth to secure better loan terms.Trump is currently appealing this decision.

new York City Council Speaker Adrienne Adams,a James ally,defended the attorney general,stating,letitia James has spent her career standing up to powerful interests and fighting for everyday New Yorkers. Now she’s being targeted by a president who abuses the power of the federal government to go after his enemies.

Trump has long accused James of targeting him for political reasons, dating back to her 2018 campaign. Letitia James, a totally corrupt politician, should resign from her position as New York State attorney General, IMMEDIATELY, Trump posted on his Truth social platform. Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office.

James has stated she will not litigate the case in the media. We will respond to these allegations at the appropriate time and in an appropriate way, she said.