In a stunning escalation, the Department of Justice has launched a criminal investigation into New York Attorney General Letitia James, Fox News confirmed Thursday.
Federal prosecutors reportedly issued grand jury subpoenas as part of a probe into whether James falsely claimed a Virginia home was her primary residence — a potential case of loan fraud. She is also accused of misrepresenting a Brooklyn multifamily property to secure better financing terms.
The case was sparked by a criminal referral from Federal Housing Finance Agency Director William Pulte, a Trump appointee, who requested that Attorney General Pam Bondi’s DOJ investigate the matter. That referral accused James of providing false information in real estate paperwork while she was a sitting state official.
Accusations and Fallout
James, who rose to prominence by aggressively targeting President Trump in civil litigation, now finds herself on the defensive. Her attorney, Abbe Lowell, dismissed the probe as “political retribution” and claimed the allegations were “long-discredited.”
“This appears to be the political retribution President Trump threatened to exact,” Lowell claimed, referencing Bondi’s Senate confirmation assurances that DOJ would not be used for retaliation.
The charges include:
- Falsely claiming a Virginia home was her primary residence — to obtain better mortgage rates.
- Misrepresenting the number of livable units in a Brooklyn property — again, to reduce interest costs.
Lowell acknowledges James signed a power-of-attorney form describing the Virginia property as a primary residence, but calls it a “mistake.” He also says updated records for the Brooklyn building contradict the original occupancy certificate being cited.
Political Earthquake
This investigation marks a sharp turn in the legal and political war between Trump and James. As New York’s AG, James led one of the most aggressive civil cases against Trump, securing a massive court ruling against him and his business — a decision still under appeal.
Now, the tables have turned. And if the DOJ’s investigation progresses, James could be looking at the same kind of relentless legal pressure she once helped inflict on Trump.
Supporters of the president see poetic justice. Critics see potential abuse of power.
What Comes Next
With grand jury subpoenas issued and a federal probe confirmed, Letitia James faces weeks or months of legal uncertainty. The DOJ and FBI declined comment, and the Eastern District of Virginia is handling the investigation.
Meanwhile, her legal defense may fall on the shoulders of New York taxpayers — thanks to a provision in the Democrat budget that would fund James’ legal bills if she’s targeted for actions taken in her official capacity.
If that sounds like a political powder keg, it is. With Trump’s administration openly reversing Biden-era prosecutions and turning up the heat on blue-state officials, the political and legal battles of 2025 are just heating up.
