Trump admin refers NY AG James for possible prosecution over mortgage fraud

You know what they say about payback that it's something that sounds like beach. This may be what is happening with New York Attorney General Letitia "Get Trump" James.

AG James has been punched with shocking allegations by the Trump administration, having accused her of mortgage fraud. That's bigger than Watergate!

In documents obtained by Fox News Channel's The Ingraham Angle, the Federal Housing Finance Agency (FHFA) sent a criminal referral to the Department of Justice, accusing James of mortgage fraud.

Holy moley!

FHFA Director William Pulte dropped a bombshell in a letter to Attorney General Pam Bondi, accusing Letitia James of cooking the books to game lending requirements and snag sweeter loan deals. Pulte’s pointing fingers at a Virginia property James allegedly claimed as her main crib—despite being a New York elected official—and a New York building she called a four-unit structure when it’s supposedly five. Why? To score a cushier loan, that’s why.

Fox News contributor and GWU law professor Jonathan Turley, who’s never short on sharp takes, told Laura Ingraham the irony here is “perfectly crushing.” 

He didn’t hold back: “This is a person who prosecuted Trump for everything short of ripping a label off a mattress, and among the charges that were brought in New York, in just the civil but the criminal case, was making false or misleading statements to financial institutions.” 

Turley’s basically saying James is hoisted by her own petard. “As for James, if we apply the Letitia James standard that she created, there’d be little question here. This seems pretty straightforward.”

It gets weirder. James allegedly listed her dad as her husband to file as a married couple. Yeah, you read that right. Turley’s like, “The Supreme Court just stated earlier in March, in a case called Thompson, that they want to see knowing false statements under sections like 10-14, not just misleading statements. These are misleading statements: either it’s your principal residence or it’s not. Either you’re married to your father or he’s your father.” 

Mic drop!

The New York Post dug up documents showing James and her dad listed as “husband and wife” on a property buy in 1983 and 2000. Pulte’s not letting that slide, writing, “While this was a long time ago, it raises serious concerns about the validity of Ms. James’ representations on mortgage applications.” 

James, who’s been Trump’s legal kryptonite, led the 2022 civil fraud suit against him and his crew, gloating through the courtroom drama and cheering when Trump got slapped with a $454 million judgment (now on appeal). In 2025 alone, she’s unleashed at least five legal assaults on the Trump admin, including a push to block DOGE from Treasury systems and another over slashed research grants. Busy lady.

But now? The tables have turned, and the DOJ and James are dodging Fox News’ calls. Turley, back on Ingraham Angle, called the documents “quite damning.” This isn’t the first time someone’s been prosecuted for this kind of thing, and if James’ own standards are applied, she might be in deeper than she’d like. 

Stay tuned—this one’s got legs.

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