NY AG Letitia James Faces Dual Federal Probes, Special Attorney Appointed in Mortgage Fraud Investigation

New York Attorney General Letitia James is currently at the center of escalating federal scrutiny, facing two distinct investigations by the U.S. Department of Justice (DOJ). This development comes as conservative commentator Dinesh D'Souza recently stated on social media, "Letitia James gets MORE bad news amid ongoing mortgage fraud investigation," highlighting the increasing pressure on the state's top legal officer. The probes include allegations of mortgage fraud and a separate inquiry into whether her office violated the civil rights of former President Donald Trump and the National Rifle Association (NRA).

The mortgage fraud investigation gained significant traction with the recent appointment of Special Attorney Ed Martin by Attorney General Pam Bondi. This probe stems from criminal referrals made by Federal Housing Finance Agency Director Bill Pulte, who alleged that James misrepresented details on property documents. Specifically, the allegations involve a Brooklyn property, claimed as a four-unit dwelling despite potentially being five, and a Norfolk, Virginia, home which James allegedly designated as her principal residence on loan forms while serving as New York AG.

In parallel, the DOJ has issued subpoenas to James's office as part of an investigation into whether she overstepped her authority and violated the civil rights of Donald Trump and the NRA. This inquiry focuses on her successful civil fraud lawsuit against Trump and his organization, which resulted in a judgment exceeding $500 million, and her litigation against the NRA. Grand juries in Virginia and Maryland are reportedly weighing potential criminal indictments related to these matters.

Attorney General James and her legal team have vehemently denied any wrongdoing, characterizing the federal investigations as politically motivated. Her attorney, Abbe Lowell, has publicly stated that these actions represent "the most blatant and desperate example of this administration carrying out the president’s political retribution campaign." These federal actions follow years of James's high-profile legal challenges against Trump and his entities, with Trump himself having previously called for her prosecution.