New York Attorney General Letitia James is under criminal investigation by the FBI and U.S. Attorney’s Office over alleged real estate and mortgage fraud, according to reports published May 8, 2025.
The probe centers on possible false statements made in mortgage documents spanning several decades. Law enforcement sources confirmed the inquiry, though no formal charges have been filed.
What the FBI is investigating
At the center of the investigation are multiple property transactions tied to James:
- 2023 Virginia property: James allegedly claimed it as her primary residence while serving as New York’s Attorney General—a potential violation of mortgage lending rules.
- 2021 Brooklyn residence: James reportedly misstated the number of units on the mortgage application.
- 1983 and 2000 transactions: In older filings, she is said to have identified her father as her spouse.
These discrepancies were flagged by Federal Housing Finance Agency (FHFA) Director William J. Pulte, who referred the matter to federal prosecutors citing potential violations including:
- Wire fraud
- Mail fraud
- Bank fraud
- False statements to a financial institution
James has denied the allegations, calling them “baseless.”
Legal pushback and political context
James recently hired criminal defense attorney Abbe Lowell, known for representing high-profile political figures. Lowell issued a strong rebuttal, stating that the referral recycles disproven allegations and is politically motivated.
“The stunning hypocrisy of President Trump’s complaint that the Justice Department had been ‘weaponized’ against him is laid bare,” Lowell wrote in a letter to U.S. Attorney General Pam Bondi, suggesting the referral is itself politically charged.
This latest development comes amid longstanding tensions between James and Donald Trump. James has led major legal actions against the former president, including investigations into the Trump Organization.
Trump responded forcefully this week from the Oval Office:
“She’s a disaster for New York… a total crook,” he said, calling James “a very bad person.”
Background on Letitia James and Trump legal battles
Letitia James has been a leading legal adversary of Trump, launching investigations into:
- Alleged financial misstatements by the Trump Organization
- Attempts to block federal funding for K–12 COVID-19 relief
- Trump-era health care cuts she called a “wrecking ball” to public services
She’s also spearheaded multiple multi-state lawsuits with other Democratic attorneys general aimed at challenging Trump administration policies.
What happens next
So far, the FBI and Department of Justice have not publicly commented on the investigation. James’ office has also declined to respond.
No formal charges have been filed, and it remains unclear if the investigation will result in an indictment.
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