Justice Department urged to Investigate Accuser in Schiff Mortgage Dispute
A legal battle is escalating surrounding accusations of mortgage fraud leveled against Senator Adam Schiff by former President Donald Trump. Preet Bharara, Schiff’s attorney, has formally requested the Department of Justice investigate Timothy Pulte, the head of Fannie Mae, alleging a politically motivated and “highly irregular” effort to discredit the Senator.The controversy stems from a review conducted by Fannie Mae investigators, prompted by a request from the Federal Housing finance agency inspector general’s office. Investigators examined loan files related to two properties owned by Schiff – a home in Potomac, Maryland, and a unit in Burbank, California – and found a “sustained pattern of possible occupancy misrepresentation” between 2009 and 2020.The investigators noted Schiff and his wife had simultaneously identified both properties as their primary residence. However, they stopped short of concluding a crime had been committed.
Trump seized on these findings, publicly accusing Schiff of mortgage fraud. Schiff’s legal team responded swiftly, asserting “no factual basis” for the claims. Bharara’s detailed letter to the Justice Department outlines a robust defense, arguing that Schiff acted transparently and within legal guidelines.
Central to the defense is a 2010 letter Schiff sent to his lender, Quicken Loans, during a refinancing. in the letter, Schiff explained that while California was his “principal legal residence” for tax purposes, he had been advised by both legal counsel and the House Management Committee that the Maryland home could be considered a primary residence for insurance underwriting due to family occupancy.Bharara characterizes this as a “obvious disclosure,” directly contradicting accusations of misrepresentation.
Moreover, Bharara contends that even if inaccuracies existed in Schiff’s mortgage applications – wich he vehemently denies – the statute of limitations for prosecution has expired. The most recent application cited by Pulte is over twelve years old, exceeding the ten-year limit.
However, Bharara’s letter goes beyond defending Schiff, focusing heavily on the conduct of Timothy Pulte. he alleges that the Fannie Mae inspector general’s inquiry into Schiff’s records was initiated “at Mr. Pulte’s behest.” He further claims Pulte personally referred the matter to the Justice Department before receiving the Fannie Mae unit’s findings, raising concerns about a pre-determined outcome.
Bharara also points to the timing of the criminal referral, which was made public amidst heightened scrutiny of President Trump’s connections to convicted sex offender Jeffrey Epstein, suggesting a intentional attempt to divert attention. The public release of Schiff’s address,a direct consequence of the accusations,forced the Senator to increase his security measures and prompted the launch of a legal defense fund.Concluding that pulte has demonstrated a “pattern” of ”misusing his office” to target Trump’s political adversaries,Bharara urges the Justice Department to investigate Pulte’s actions instead of pursuing a case against Schiff. He argues that opening an investigation based on these “deficient facts” would be a “deeply partisan and unjust act,” and ultimately “unworthy of the Department of Justice.”