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Trump Administration Accuses New York Attorney General of Fraud
In a significant development, the Trump administration has accused New York Attorney General Letitia James of committing mortgage fraud and has initiated a criminal referral to the Justice Department to consider federal prosecution.
Officials from the Federal Housing Finance Agency (FHFA) have alleged that James falsified bank and property records to secure more favorable loan agreements. This information was relayed to media sources by an administration official, emphasizing the gravity of the charges being leveled against the attorney general.
James previously won a civil case against former President Donald Trump in 2023, where she had accused him of inflating the value of his properties to secure loans with advantageous terms. Trump is currently in the process of appealing the decision.
At this time, no formal charges have been brought against James. In response, her office has claimed that the Trump administration is misusing federal resources for political gain. A spokesperson for James stated, “Attorney General James is focused every single day on protecting New Yorkers, especially as this administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies — no matter who they are.”
Since leaving office in 2021, Trump has maintained that his political adversaries are exploiting the justice system to undermine him, a sentiment echoed throughout his legal battles.
The White House has confirmed that, as of now, no charges against James have been filed, noting that more information would be available if the Justice Department takes further action.
A letter obtained by U.S. media from FHFA Director William Pulte to U.S. Attorney General Pam Bondi accuses James of misrepresenting a New York building as a four-unit property rather than five, allegedly to secure better loan terms. The letter details that James also claimed a property in Norfolk, Virginia, was her primary residence in 2023, during her tenure as the top state prosecutor, to obtain a lower interest rate on a loan, as mortgages for primary residences generally feature more favorable terms.
“Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA, property as her primary home,” the letter contends.
On social media platform Truth Social, Trump referred to James as a “wacky crook,” asserting that she is a “totally corrupt politician” who should resign from her position as New York State Attorney General.
In a related matter, Trump’s family business was deemed liable in 2023 for falsifying records and financial statements to obtain better loan and insurance terms. This included a ruling that the Trump Organization had overvalued a penthouse at Trump Tower in New York, falsely claiming it was three times its actual size, among various other allegations.
The judgment against Trump mandates that he pay over $350 million in damages in the civil fraud case, which is currently under appeal. During the proceedings, Trump frequently criticized James, labeling her as “biased and corrupt.”
In another legal twist, Trump has been criminally convicted for falsifying business records in a separate matter, involving a guilty verdict on 34 counts for improperly classifying reimbursements tied to a hush-money payment made to adult-film actress Stormy Daniels.
As he campaigns, Trump has expressed intentions to target those he perceives as political enemies, which includes former President Joe Biden and others who have opposed him. He has also revoked security clearances from several officials, including James and Manhattan District Attorney Alvin Bragg, who is involved in the hush-money case against him.
Furthermore, Trump has dismissed several prosecutors who worked under special counsel Jack Smith, who is managing two criminal investigations into his actions. He has also taken measures against law firms representing attorneys involved in inquiries concerning allegations against him, including those associated with former special counsel Robert Mueller.
Source
www.bbc.com