Federal prosecutors in Albany, New York have launched a criminal investigation into allegations of mortgage fraud involving New York Attorney General Letitia James, following a referral from Federal Housing Finance Agency Director William Pulte.
The case, now under review by the FBI and U.S. Attorney John Sarcone III—an ally of President Trump—centers on two properties tied to James: a Brooklyn brownstone she has owned since 2001 and a Virginia home she purchased in 2023. Pulte’s referral alleges James falsified records to secure favorable loan terms for both properties.
According to the referral, James claimed the Virginia home would serve as her “principal residence” while continuing to serve as New York’s attorney general, and misrepresented the number of rental units in her Brooklyn property to meet lending criteria. Pulte argued such actions could warrant charges including wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.
The attorney general’s office has retained prominent defense attorney Abbe David Lowell—best known for representing Hunter Biden—to handle the matter. According to the Times Union, Lowell was hired by the office itself, meaning taxpayers are likely to cover the legal costs.
