Federal prosecutors have opened a criminal investigation against New York Attorney General Letitia James regarding real estate and mortgage transactions. The Federal Housing Finance Agency (FHFA) made a criminal referral to the Justice Department against James, alleging she said a Virginia home was her primary residence to secure more favorable loans. “Based on media reports, Ms. Letitia James has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms,” the agency wrote, according to The Hill. “At the time of the 2023 Norfolk, VA property purchase and mortgage, Ms. James was the siting 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,” it added. She's cooked. BREAKING: FBI investigates NY AG Letitia James over mortgage fraudhttps://t.co/5HrNyf3Ly4 — Libby Emmons (@libbyemmons) May 8, 2025 From the Times Union: It’s unclear why U.S. Attorney General Pam Bondi steered the referral to New York’s Northern District; although James is a statewide elected official with offices in Albany, the transactions involve her personal property purchases and loans that were processed in New York City and Virginia. Some of the transactions also may fall outside the federal statute of limitations, although one of the mortgages involves James’ assertions in loan documents related to her 2023 purchase of a residence in Norfolk, Virginia. One of the mortgage documents filed in connection with James’ purchase of the single-family residence — a notarized power-of-attorney document — was signed as a witness by Jennifer Levy, who is the first deputy attorney general. A spokesman for James did not immediately respond to a question about why Levy would have been asked to sign a document related to the attorney general’s purchase of a private residence. That document, which James also signed, stated: “I hereby declare that I intend to occupy this property as my principal residence.” Under state law, James’ principal residence as a statewide elected official must be in New York. “This is being handled at this time by main (Department of) Justice and the Albany FBI field office,” said U.S. Attorney John A. Sarcone III, who oversees the U.S. Attorney’s Office in New York’s Northern District. “We stand prepared to act in the capacity that we need to when and if we are informed there’s a charge to be made. Unlike Letitia James, who unethically ran around the state campaigning on getting Donald Trump… my office conducts itself in a manner that is proper and professional.” FBI opens formal criminal probe into New York AG Letitia James over alleged mortgage fraud https://t.co/Vpcsk3tyhC pic.twitter.com/dzXhUS5aJB — New York Post (@nypost) May 8, 2025 More from the New York Post: Rep. Elise Stefanik, who reps the district where the investigation was initiated, commended the FBI and Albany prosecutors. “The investigation into Letitia James is a vital step toward justice,” the Republican congresswoman said in a statement. “I will continue to fight to expose NY corruption, protect constitutional rights, and hold these failed Democrat leaders in NY accountable.” Pulte’s letter alleged James “falsified records” to obtain favorable loans on a home she purchased in 2023 in Virginia and a Brooklyn brownstone she’s owned since 2001. The Democrat also allegedly indicated the Virginia home would be her “principal residence” while acting as New York’s top cop, and that she misrepresented the number of units in her Brooklyn residence. “Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte told Attorney General Pam Bondi. That could amount to criminal charges, including wire fraud, mail fraud, bank fraud and false statements to a financial institution, among others, Pulte added. In related news, the New York Post reported that taxpayer money may fund legal bills for the state’s top prosecutor. The outlet noted that New York’s “operations budget bill” includes language saying certain state officials can use a $10 million fund to cover attorneys’ fees and expenses in a federal investigation. Legislation Would Have Taxpayers Fund Legal Bills For New York Attorney General Letitia James In Justice Department Probe, Report Says