Victoria Ogunyemi
New York Attorney General Letitia James is under federal scrutiny following a criminal referral involving allegations of mortgage fraud related to property acquisitions in Virginia and Brooklyn, according to documents obtained by CBS News.
A letter sent to U.S. Attorney General Pam Bondi by William Pulte, Director of the Federal Housing Finance Agency (FHFA), accuses James of engaging in a series of potentially fraudulent real estate transactions spanning over two decades. The claims suggest James may have falsified documentation to obtain government-backed loans under more favorable terms.
According to the referral, James allegedly misrepresented her primary residence status when securing a mortgage for a home purchased in Norfolk, Virginia, in 2023. At the time, she was serving as New York’s attorney general—a role that requires her to maintain residency in the state. However, mortgage documents reportedly indicated her intent to designate the Virginia property as her principal home.
Pulte further alleges that James granted power of attorney to a woman named Shamice Thompson-Hairston, authorizing her to act as if the property were her primary residence, thereby allowing James to potentially bypass occupancy requirements and secure more advantageous mortgage rates.
In a separate claim, the referral highlights discordance in a Brooklyn property James purchased in 2001. Pulte asserts that James classified the building as a four-unit residence—qualifying it for certain federal loan programs—despite records indicating the property actually consisted of five units. Such a misrepresentation, if proven, could have resulted in reduced interest rates and more accessible financing.
“Spanning the last two decades, Ms. James has consistently misrepresented the same property as having four units in both building permit applications and numerous mortgage filings,” Pulte wrote. “These discrepancies, taken together, may constitute violations of federal statutes including wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.”
The referral also references a 1983 mortgage document allegedly signed by James and her father, wherein the two identified themselves as husband and wife—a claim that, while seemingly unrelated to recent transactions, could raise additional legal questions regarding past loan applications.
Attorney General Bondi’s office has confirmed receipt of the referral and stated it is conducting a preliminary review. No formal charges have been filed against James at this time.
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In response, a spokesperson for the New York Attorney General’s Office dismissed the allegations as politically motivated.
“Attorney General James is focused every single day on protecting New Yorkers—especially as this administration continues to weaponize the federal government against the rule of law and the Constitution,” the statement read. “She will not be intimidated by bullies, no matter who they are.”
Appearing on NY1, James described the allegations as “baseless” and characterized the referral as part of a political “revenge tour.” She drew a direct line between the scrutiny and her 2022 civil suit against former President Donald Trump, which resulted in a sweeping fraud judgment and penalties exceeding $500 million.
Governor Kathy Hochul also weighed in, defending James while acknowledging the need for due process. “He said he was going after his enemies—and now he’s gotten down to the J’s on his list,” Hochul said in reference to Trump’s past remarks targeting political adversaries.
Legal experts have noted that while the allegations could potentially lead to civil or criminal charges if substantiated, some claims—particularly those related to older transactions—may be constrained by statutes of limitations. Nicole Brenecki, a professor of law and financial compliance, emphasized that “the legal viability of these accusations will depend heavily on available evidence and timelines.”