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By James Bickerton
News Reporter
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New York Attorney General Letitia James has said accusations she committed mortgage fraud are a "baseless retaliation" in response to her involvement in legal proceedings against Donald Trump.
Newsweek contacted the Federal Housing Finance Agency, which referred James for investigation, and James via the New York Attorney General's Office for comment on Friday via email and online inquiry form outside of regular office hours.
Why It Matters
James was referred by the Federal Housing Finance Agency (FHFA) to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche regarding allegations she falsified records to help obtain a mortgage in 2023. She has strongly denied any wrongdoing.
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Since Trump returned to the White House in January, his administration has stripped security clearance from a number of critics including former Secretary of State Mike Pompeo and taken action against a number of law firms which were involved in legal cases against him. Critics claim Trump is systematically targeting his critics whilst the president's team argue he is simply redressing wrongs committed during the Biden administration.
What To Know
Speaking to Spectrum News about the investigation into her, James said: "It is nothing more than a headline, nothing more than, again, retaliation against all of the actions that I have taken successfully against Donald Trump."
James also said she was not contacted in advance before a letter was sent by FHFA director William J. Pulte to Bondi and Blanche alleging she had submitted falsified documents to help get a mortgage.
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In his letter, Pulte said James had in 2023 said a property in Norfolk, Virginia, was her primary residence despite New York residency being required for her job.
Pulte also said that between 1983 and 2000, James purchased a property with her father as co-signer, but listed them as husband and wife, and falsely claimed a Brooklyn property she owns had four units rather than five in 2021.
Speaking to Spectrum News, James described these allegations as "baseless," but said she would save litigation for the courts rather than the TV studio.
However, according to legal filings reviewed by Newsweek, James had amended her records - in a "specific power of attorney" document signed by James on August 13, 2023 - to show her intent to change her residence to Norfolk. The attorney general authorized her relative, Shamice Thompson-Hairston, to act on her behalf in the real estate transaction.
The document states: "I HEREBY DECLARE that I intend to occupy this property as my principal residence." The existence of the documents was first reported by Sam Antar of the White Collar Fraud blog.
James and Thompson-Hairston have co-ownership rights as they are both listed in "joint tenancy with right of survivorship as at common law." Thompson-Hairston signed both the mortgage document and later signed another document, making herself attorney of fact.
New York State law holds: "When an officeholder removes his residence from the territorial limits required by statute, the office is rendered vacant." Experts have told Newsweek that James could face fraud charges but that it is more likely she will face political ramifications, not legal ones, even though there is a legal path to have her removed from office.
"The mortgage company also has legal standing to pursue damages if lower interest was in fact obtained as a result of a false declaration of residency," New York City trial attorney Nicole Brenecki told Newsweek. "However, this appears to be the most far-fetched scenario as litigation is timely and costly, and the potential damages would have to outweigh this expense."
In 2024, Trump was ordered to pay $454 million in a civil fraud judgement after a New York court concluded he had falsely inflated the value of his properties in response to a case brought by James. He has consistently denied wrongdoing and is appealing the decision.
What People Are Saying
During her Spectrum News appearance, James said: "Let me just say to all New Yorkers and all Americans the allegations are baseless. The allegations are nothing more than a revenge tour and as you mentioned my office was successful in securing a $454 million judgement against Donald Trump and others for exaggerating the value of his assets. He engaged in a pattern and practice of fraud and the interest is accruing each and every day whilst the case is on appeal in the first department.
"It's important that individuals know that this is nothing more than a continuation of the tour. He went after law firms, universities, immigrants, women, thousands of federal employees right now are unemployed, our government is in chaos and disarray, Medicaid, social security, CFPB [Consumer Financial Protection Bureau] and the list goes on and on and on.
"And as you know...each and every day my office is leading the fight against these executive orders which have no legal import at all, have no legal significance. We are standing up for the rights and privileges of New Yorkers and Americans. I will not be silenced. I will not be bullied. I will not bend, I will not break, and I will not bow to anyone. Nobody is above the law include the president of these United States."
What Happens Next
Speaking to Newsweek, former assistant U.S. Attorney Gene Rossi said James's referral was likely to "be taken very seriously" and that if true the accusations would be difficult to disprove. James has yet to face any formal legal action and it is unclear if and when this could occur.
Update, 4/18/25 at 11:51 a.m. ET: Additional information was added.
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