The federal government has launched a probe into alleged financial irregularities involving New York Attorney General Letitia James, who recently secured a massive civil judgment against the Trump Organization.

According to Breitbart, Federal Housing Finance Agency Director William Pulte has referred James to the Justice Department for potential criminal prosecution over claims she falsified mortgage documents to secure favorable loan terms for properties in Virginia and New York.

The criminal referral sent to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche outlines multiple allegations of financial misconduct.

The document claims James misrepresented a Virginia property as her primary residence in 2023 while serving as New York's attorney general, a position that legally requires her to maintain primary residency in New York state.

Complex mortgage dealings raise legal questions

The investigation reveals potential discrepancies in James's property documentation spanning multiple years and locations. Officials allege she consistently misrepresented a Brooklyn five-family property as having only four units in building permits and mortgage applications.

Additional concerns arose regarding another property purchase where James allegedly listed herself and her father as "father and wife" on loan documents.

These allegations surface at a particularly sensitive time for James, who recently won a $454 million civil fraud judgment against the Trump Organization. The case, which focused on alleged property value inflation, is currently under appeal.

Legal expert Jonathan Turley, writing for the New York Post, highlighted the gravity of James's situation. He emphasized that the Justice Department has previously prosecuted similar cases of mortgage fraud involving misrepresentation of primary residences.

Potential consequences face New York prosecutor

Turley points out the irony in James's current predicament, noting her previous stance on financial documentation accuracy. Here's what he wrote:

Ms. James could claim that these representations were made by a third party acting on her behalf. However, that is precisely the argument that she repeatedly rejected in the Trump case, insisting that he was legally obligated to review all filings made in his name or that of his companies.

The criminal referral specifically addresses James's alleged pattern of misrepresentation across multiple properties. The timing of the Virginia property purchase, occurring just weeks before she began her civil fraud trial against the Trump Organization, has drawn particular scrutiny from investigators.

Legal battle reaches critical stage

The Justice Department now faces the task of evaluating these serious allegations against a sitting state attorney general. The investigation's scope encompasses multiple properties and years of financial documentation, suggesting a comprehensive review of James's real estate dealings.

The investigation has gained additional attention due to James's high-profile position and her recent legal victory against the Trump Organization. Legal experts suggest the case could have significant implications for both James's career and her ongoing legal pursuits.

Parallel investigations shape legal landscape

Federal investigators now examine alleged mortgage irregularities by New York Attorney General Letitia James, focusing on property purchases in Virginia and New York. The criminal referral from the Federal Housing Finance Agency claims James misrepresented primary residences and property details to secure favorable loan terms. This development occurs amid James's continuing legal battle with the Trump Organization, where she secured a $454 million civil fraud judgment currently under appeal.