A stunning legal battle between President Donald Trump's administration and New York Attorney General Letitia James has taken a dramatic turn with new allegations of mortgage fraud.
According to Fox News, the Federal Housing Finance Agency (FHFA) has submitted a criminal referral to the Department of Justice, claiming James falsified mortgage documents and made misleading statements on loan applications.
Federal officials allege James improperly listed a Virginia property as her primary residence while serving as a New York elected official, and misrepresented her father as her husband on mortgage applications.
These accusations come amid an ongoing legal dispute between James and Trump, who was recently ordered to pay $454 million in a civil fraud case led by the New York Attorney General.
Federal Agency Uncovers Alleged Property Discrepancies
FHFA Director William Pulte detailed the accusations in a letter to Attorney General Pam Bondi, highlighting potential violations in James' loan applications. The investigation revealed discrepancies in how James classified a New York property, allegedly describing it as a four-unit structure instead of five units to secure more favorable loan terms.
James' office promptly responded to these allegations on Wednesday morning. A spokesperson emphasized the Attorney General's commitment to protecting New Yorkers and suggested the accusations were politically motivated.
Fox News contributor Jonathan Turley offered his perspective on the situation during an appearance on "The Ingraham Angle." The George Washington University law professor noted the ironic parallel between these allegations and James' own prosecution of Trump.
Legal Experts Weigh In on Serious Accusations
Turley, expanding on the significance of the allegations, pointed to a recent Supreme Court ruling that emphasized the importance of proving knowing false statements in such cases. He elaborated on the straightforward nature of the accusations regarding residency and marital status claims.
NYPD inspector and Fox News contributor Paul Mauro revealed he had initially reported these allegations on his Substack approximately ten weeks ago. The authenticity of the documents presented by Sam Antar appears to substantiate the claims against James.
Documents obtained by the New York Post showed that James and her father were listed as "husband and wife" on property documents from both 1983 and 2000. FHFA Director Pulte expressed serious concerns about these representations in mortgage applications.
Mounting Legal Tensions Between Trump and James
The criminal referral comes at a particularly contentious time in the ongoing legal battle between Trump and James.
In 2025 alone, the New York Attorney General led multiple legal actions against the Trump administration, including lawsuits related to Treasury Department access and research funding.
James has been particularly vocal in her pursuit of Trump-related cases, personally attending courtroom proceedings in the Manhattan criminal trial where Trump faces 34 counts of falsifying business records. Her office has maintained an aggressive stance against the Trump administration through various legal channels.
The Department of Justice has not yet publicly responded to the criminal referral, leaving questions about potential prosecution unanswered.
