The Department of Justice has opened a criminal investigation into New York Attorney General Letitia James, centering on allegations she misrepresented real estate holdings to secure favorable loan terms, Fox News reports.
According to a source familiar with the matter, a grand jury in the Eastern District of Virginia has issued subpoenas as part of the probe. The investigation reportedly stems from claims that James falsely identified a single-family home in Virginia as her primary residence—allegedly to obtain better mortgage conditions. A separate accusation involves a Brooklyn multifamily property, where James is said to have inflated the number of livable units to secure more advantageous financing.
The investigation follows a criminal referral submitted by William Pulte, who served as Director of the Federal Housing Finance Agency under former President Donald Trump. Pulte urged the DOJ to examine both incidents, citing potential fraud.
James’ legal team has pushed back forcefully. Her attorney, Abbe Lowell, denounced the allegations as “baseless and long-discredited,” referencing a letter he sent to the DOJ on April 24 that he claims addressed and debunked the accusations. Lowell suggested that the renewed scrutiny is politically motivated, linking the timing of the investigation to recent public attacks by Trump on James.
“This appears to be the political retribution President Trump threatened to exact that AG Bondi assured the Senate would not occur on her watch,” Lowell said Thursday, referring to US Attorney General Pam Bondi, who received both Pulte’s referral and Lowell’s subsequent response. “If prosecutors are genuinely interested in the truth, we are prepared to meet false claims with facts.”
Letitia James has long been a prominent critic of Trump. As New York Attorney General, she led several lawsuits aimed at blocking Trump administration policies and spearheaded a high-profile civil case that accused Trump and the Trump Organization of falsifying business records to improve loan terms. A judge ordered Trump to pay hundreds of millions in that case—a decision he is currently appealing.
Lowell’s letter also highlighted what he called the “stunning hypocrisy” of Trump, who has repeatedly claimed the DOJ was weaponized against him. “He and others in his administration are now asking you to undertake the very same practice,” Lowell wrote.
In response to the property allegations, Lowell acknowledged that James signed a power-of-attorney document listing the Virginia property as a primary residence, but called it a clerical error. He noted that other documents given to the lender clearly indicated the home was not intended as a primary residence. Regarding the Brooklyn property, Lowell said updated records showed it was a four-unit residence, and accused Pulte of relying on outdated documents, such as a 2001 certificate of occupancy, to support the fraud claim.
James has retained an attorney who previously represented Hunter Biden as part of her defense team.
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