New York Attorney General Letitia James could face “jail time” after being accused of mortgage fraud, an academic has said.
James, a Democrat who has served as New York’s attorney general since 2019, was this week referred to U.S. Attorney General Pam Bondi and Deputy Attorney General Todd Blanche by the Federal Housing Finance Agency (FHFA). Its director, William J. Pulte, alleged in a letter that James falsified records to obtain a mortgage.
According to Pulte, James said on a mortgage application in 2023 that a house in Norfolk, Virginia, was her primary address, despite her position requiring New York residency.
The 1,450-square-foot single-family home in Norfolk was built in 1947 and has three bedrooms and one bathroom, per the deed. It was purchased for $240,000, with a $219,780 mortgage.
AP Photo/Ted Shaffrey
Pulte also said that in 2021, the New York attorney general falsely stated the number of units in a Brooklyn property she owned—saying it had four units, not five. He added that James purchased another property with her father as co-signer but listed them as husband and wife in 1983 and 2000.
Pulte alleged wire fraud, mail fraud, bank fraud and false statements to a financial institution.
While James has not been formally charged and has denied all wrongdoing, legal experts have suggested that she will be prosecuted, with one suggesting she could see jail time.
A spokesperson for the Office of the Attorney General told Newsweek: “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.”
Speaking with Newsweek, Kyle Welch, an associate professor at George Washington University’s School of Business who specializes in financial fraud, said the allegations about James could “carry jail time” and disbarment.
James gained national attention last year after suing Trump on charges of falsely inflating the value of his property. A New York judge ordered Trump to pay $454 million in the civil fraud judgment.
“The irony here is almost too on-the-nose,” Welch said. “Letitia James built her ‘nobody is above the law’ brand by prosecuting Trump for inflating his financial condition—statements that came with disclaimers, involved banks that said they weren’t harmed, and still resulted in a half-billion-dollar fraud conviction.”
He continued: “Was Trump’s case a 100 percent political prosecution? Yes. Now James is under scrutiny for allegedly misrepresenting her own finances to get a mortgage. No disclaimers. No ambiguity. Is this case also 100 percent political? Yes. Would either case have been brought against a nonpolitical civilian? Probably not. And that’s the bigger problem for all of us.
“James and her defenders can’t seem to see the carbon-copy nature of these cases. And unfortunately, New York Democrats and the DNC helped normalize this tit-for-tat legal targeting under the banner of ‘accountability.’ Well, the shoe’s on the other foot now—and Trump’s team is playing the exact same game.
“Here’s where it gets surreal: Both cases involve felony-level allegations. Both could carry jail time. A conviction would likely mean disbarment for James. Will James, like Trump, turn this prosecution into a political asset?”
Former assistant U.S. Attorney Gene Rossi told Newsweek that the referral was likely to “be taken very seriously” and that if the allegations were true, they wouldn’t be difficult to prove.
“People in glass houses should never throw stones,” he said. “And for politicians, this adage can be deadly. Attorney General James faces mortgage fraud allegations that make the civil trial stones thrown at President Trump look conniving and hypocritical. If the allegations are true, the elements of her purported crime are not hard to prove. The issue for me is whether she is the victim of vindictive or selective prosecution; however, the irony of her defense would not be lost on the public. Nonetheless, under this Justice Department, the referral will be taken very seriously.”
Matthew Mangino, a former district attorney in Lawrence County, Pennsylvania, added that James would be prosecuted and that it would “have a chilling effect on opposition” to Trump.
“The attorney general of one of the largest states in the nation should not, if the allegations are true, be fudging the books to qualify for better borrowing rates, especially not one investigating the President of United States,” he told Newsweek.
“But let me be clear—this a warning from the Trump administration: ‘We are watching. Come after the President, and we are going to exact revenge.’ The message is clear—if you’re going to challenge Trump, you better be ready for the wrath of the United States government,” Mangino continued.
He added, “This referral and ‘inevitable’ prosecution will have a chilling effect on opposition to President Trump, and that is exactly what it is intended to do.”
Lawyer Norman Eisen, who served as the ambassador to the Czech Republic during the Obama administration, disagreed that a court would proceed on the allegations mentioned.
“This is more Trump administration weaponization, like his executive orders last week demanding investigations of officials from his first administration who had the temerity to criticize him,” he told Newsweek.
Eisen continued: “The stale allegations here are blatant tit-for-tat and should not be dignified as if they were genuine issues. No court is going to proceed on allegations from 1983, for example. The AG has said she will not be bullied or deterred from her work by this retaliation. Good for her. Every American should reject the president’s and his cronies’ illegitimate use of government power to attack his enemies.”
Bondi said on Wednesday that the Department of Justice was reviewing documents scrutinizing James’ residence.
