New York Attorney General Letitia James is under federal criminal investigation following allegations related to her real estate dealings and mortgage applications.

According to a report by the Albany Times-Union, the FBI’s Albany field office and the U.S. Department of Justice are leading the investigation.

“This is being handled at this time by main Justice and the Albany FBI field office,” said U.S. Attorney John A. Sarcone III, who oversees New York’s Northern District.

Sarcone criticized James’s past actions, saying:

“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.”

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Criminal Referral Sent Over Virginia Property

The investigation was reportedly sparked by a criminal referral from William Pulte, director of the Federal Housing Finance Agency. In a letter sent last month to the DOJ, cited by ABC, Pulte raised concerns about a 2023 property purchase in Norfolk, Virginia.

“At the time of the 2023 Norfolk, VA property purchase and mortgage, 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 stated.

Pulte alleged that James may have falsified records to obtain favorable loan terms, possibly violating federal statutes including wire, mail, and bank fraud.

“It appears Ms. James’ property and mortgage-related misrepresentations may have continued to her recent 2023 Norfolk, VA property purchase in order to secure a lower interest rate and more favorable loan terms.”

Attorney General Letitia James Brooklyn Property 

The Times-Union also cited earlier controversy involving a Brooklyn property James purchased in 2001. While it has five units, documents filed by James over the years listed four or fewer—potentially affecting taxation and financing classifications.

Notably, the mortgage document lists her as her father’s wife, a move lending experts say could have secured better loan terms and is possible fraud.

Political Fallout and Defense Fund Controversy

In response to growing legal scrutiny of state officials, the New York state budget includes a $10 million defense fund—a move that drew harsh criticism from Rep. Elise Stefanik.

“Letitia James, who illegally weaponized her office to pursue politically motivated witch hunts, now expects taxpayers to foot the bill for her alleged misconduct,” Stefanik wrote in a statement on her official website.

“This shameful abuse of public funds demands accountability. I call on Governor Hochul to immediately remove this provision from the budget and for an independent investigation into James’ alleged fraud.”