New York Attorney General Letitia James pushed back against the Trump administration during a recent speaking event, calling the criminal investigation into her business dealings an overreaction to what she described as “mistakes” in what some are calling a tacit admission of property fraud.
The probe centers on allegations that James listed a Virginia property she purchased in 2023 as her “principal residence,” despite actively serving as New York’s attorney general. Under state law, candidates for attorney general must reside in New York for at least five years prior to running and are required to maintain residency throughout their tenure in office.
A criminal referral issued by Federal Housing Finance Agency (FHHA) Director William Pulte further alleges that Letitia James purchased a Brooklyn property in 2001 but “consistently misrepresented the property as having only four units” on building permit applications and in multiple mortgage-related documents, according to Pulte.
This misrepresentation could have enabled James to secure a lower mortgage rate and potentially reduced her payments under the federal Home Affordable Modification Program (HAMP). If so, that would fulfill the legal definition of fraud.
During a recent speaking event, James claimed that she made simple “mistakes” when falsely listing her principal residence.
“This investigation, to me, is nothing more than retribution. It’s baseless. It has to do with the fact that on a power of attorney, mistakenly indicated that I was a state of Virginia,” the Empire State’s top lawyer claimed. “But prior to that I had indicated to the mortgage broker that in fact, in bold cap letters, that I am not a resident of Virginia and never will be.”
James also addressed allegations surrounding the mortgage application by once again blaming ‘mistakes.’ “And in the mortgage application, I indicated that I would not live in Virginia and I was not a resident,” she said. “They just took the power of attorney and they’re using that as a basis for enforcement, for their investigation, when in reality, the power of attorney was never used to determine my eligibility for a mortgage for my niece for a home in the state of Virginia.”
Ironically, the legal defense now being used by Letitia James was denied to President Donald Trump and the Trump Organization when her office brought a contested civil fraud case against them. That case, which is currently under appeal, resulted in a judgment exceeding $454 million against the organization.
“So the karma is crushing here. But the greatest irony, of course, is to hear her counsel and her spokesperson say ‘This is just wrong because Trump campaigned on moving against his enemies.’ For those of us who have covered this litigation for years, having those words come out of the mouths of James’ staff really is breathtaking,” George Washington law professor Jonathan Turley told Fox News when reacting to James’ defense.
Turley highlighted several contradictions in Letitia James’ legal defense, noting that her legal team is now contending that discrepancies, such as conflicting claims about her primary residence and allegations of misrepresenting the number of units in a property, should be dismissed as unintentional errors or the result of miscommunication.
“That’s a type of understanding and leeway that she refused to allow to Donald Trump. She insisted that everything that was signed in her name, and it was signed in his name, I should say, really are bound legally to him,” he said. “And so they said you have an obligation to make sure everything filed was absolutely accurate.”
