Federal Agency Refers Letitia James Mortgage Allegations to DOJ Amidst "Revenge Tour" Claims

New York Attorney General Letitia James is facing allegations of mortgage fraud, with a federal agency reportedly referring the matter to the Department of Justice. Sam E. Antar, a financial expert and convicted former CFO, publicly accused James of misrepresenting property details over an extended period to secure advantageous loan terms. The accusations come amidst James's high-profile legal battles, notably against former President Donald Trump.

Antar, known for his work exposing corporate fraud, asserted that James engaged in "42 years of false mortgages," explicitly stating, "No one is that dumb." He detailed claims that James "swore a VA house was your 'principal residence' and kept calling a 5-unit building 1–4 to score better terms," implying deliberate misrepresentation on mortgage documents.

The Federal Housing Finance Agency (FHFA) has sent a criminal referral letter to the Department of Justice, stating that James "appeared to have falsified records" related to properties she owns in Virginia and New York. This development follows a period of intense scrutiny from Trump's allies and online critics, who have highlighted Antar's claims.

Attorney General James has vehemently denied the allegations, describing them as "baseless" and a "revenge tour" orchestrated in retaliation for her successful legal actions against Donald Trump. She told Spectrum News that the claims are "nothing more than a headline, nothing more than, again, retaliation against all of the actions that I have taken successfully against Donald Trump."

The allegations center on two properties. For a Brooklyn home she has owned for two decades, Antar alleges James consistently listed it as a four-unit dwelling on mortgage documents, despite a 2001 certificate of occupancy indicating it has five units. He argues that even if the physical structure is four units, misrepresenting it on loan applications contradicts the legal certificate.

Regarding a Virginia residence purchased with a niece, Antar claims James attested to using it as a principal residence, which can lead to lower mortgage rates. While James's office stated a rider clarified the Brooklyn building as four units, and her mortgage agreement for the Virginia property did not require it to be a primary residence, the FHFA referral suggests further scrutiny.

Sam E. Antar, a former accountant convicted in the "Crazy Eddie" fraud case, has since become a prominent figure in white-collar crime investigations, often utilizing social media. He clarified his motivation, stating, "I don’t work for Trump, don’t like Trump, and don’t take orders from Trump — I investigate for fun," seeking to distance his accusations from political influence.

The criminal referral marks a significant escalation, though it remains unclear whether it will lead to formal charges. The timing aligns with heightened political tensions, with President Trump himself posting Antar's story on Truth Social and calling for James's resignation.