Trump Administration Refers NY AG Letitia James for Potential Prosecution Over Alleged Mortgage Fraud

April 16, 2025 – The Trump administration has referred New York Attorney General Letitia James for potential prosecution over allegations of mortgage fraud, escalating a high-profile clash between the former president and the state prosecutor who pursued a civil fraud case against him. The referral, sent to the Department of Justice by the Federal Housing Finance Agency (FHFA), accuses James of falsifying records on mortgage applications to secure favorable loan terms, according to multiple reports.

The allegations center on mortgage applications for a property in Norfolk, Virginia, where James allegedly claimed the property as her primary residence, despite legal requirements mandating that New York’s Attorney General maintain a primary residence in the state. The timing of the alleged falsification is notable, reportedly occurring just weeks before James launched a civil fraud trial against the Trump Organization, accusing it of inflating property values. That trial culminated in a $454 million judgment, which the Trump Organization is currently appealing.

Legal scholar Jonathan Turley, in a New York Post column, described the accusations against James as “particularly damning” given her public stance of “zero tolerance” for financial irregularities. Turley noted that the Justice Department has previously prosecuted similar cases of mortgage fraud, citing a Puerto Rican man convicted for false statements on a reverse mortgage application. He argued that the allegations undermine James’ credibility, especially after her campaign rhetoric emphasizing that “no one is above the law.”

The DOJ has not yet confirmed whether it will pursue charges.

The referral follows a contentious history between James and Trump. During her 2018 campaign, James vowed to investigate Trump’s business practices, a promise that led to the civil fraud case. The Trump administration’s referral now casts a spotlight on James’ own financial dealings, raising questions about whether the DOJ will act on the allegations or if the move will be seen as a strategic counterattack.

Neither James’ office nor the DOJ has issued an official statement on the referral as of this reporting. The situation remains fluid, with potential legal and political ramifications looming as the Trump administration continues its second term.

Sources: Breitbart, New York Post, Washington Examiner, NewsRadio 740 KTRH

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