The Federal Housing Finance Agency (FHFA) has called for a criminal investigation into New York Attorney General Letitia James , citing allegations of mortgage fraud , US media reported Wednesday. James, a prominent legal adversary of President Donald Trump, led the civil fraud lawsuit that resulted in a $454 million judgment against Donald Trump and his sons in 2024.
According to the reports, the FHFA has referred the case to the US Department of Justice , alleging that James “falsified records” in applications for property loans in Virginia and New York to secure favourable terms, including government-backed assistance.
"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 housing agency reportedly stated in a referral letter.
In response, James’s office issued a defiant statement, accusing the Trump administration of weaponising the federal government: "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."
Neither the Justice Department nor the FHFA responded to AFP’s request for comment on the matter.
The referral comes amid a broader pattern of retribution by Trump since his return to the White House in January. The president has made public his desire to retaliate against perceived enemies, with the firings of Justice Department and FBI officials involved in his past legal cases seen as part of that effort.
According to the reports, the FHFA has referred the case to the US Department of Justice , alleging that James “falsified records” in applications for property loans in Virginia and New York to secure favourable terms, including government-backed assistance.
"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 housing agency reportedly stated in a referral letter.
In response, James’s office issued a defiant statement, accusing the Trump administration of weaponising the federal government: "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."
Neither the Justice Department nor the FHFA responded to AFP’s request for comment on the matter.
The referral comes amid a broader pattern of retribution by Trump since his return to the White House in January. The president has made public his desire to retaliate against perceived enemies, with the firings of Justice Department and FBI officials involved in his past legal cases seen as part of that effort.
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