Bye Letitia? Criminal Referral Filed Against NY AG Over Real Estate Fraud Accusation

A criminal referral against New York Attorney General Letitia James has been filed with the DOJ, alleging that James had "falsified records" to get home loans for a Virginia property that she claimed was her "principal residence" in 2023 - while she was serving as a New York state prosecutor.

Federal Housing Finance Agency (FHFA) Director William Pulte sent the missive to Attorney General Pam Bondi and Deputy AG Todd Blanche, claiming that in late August 2023 - weeks before she launched her civil fraud trial against the Trump Organization for inflating the values of its properties.

In 2021, James also purchased a 5-family Brooklyn property, but has "consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications," the letter noted.

Loans secured for this property could have reduced her mortgage interest rate by as much as 1% - leaving James with lower monthly payments under the federal Home Assistance Modification Program (HAMP) since it was listed as containing just four units, according to Pulte.

Documents from the NYC Department of Buildings show a pattern of inconsistencies about a Brooklyn property James owns—inconsistencies that mysteriously received special treatment when reported.

As White Collar Fraud noted last month; 

The Certificate of Occupancy for 296 Lafayette Avenue in Brooklyn—issued January 26, 2001—clearly states the property is a five-family dwelling regulated under NYC housing laws. James purchased this property on February 14, 2001, just two weeks after this Certificate of Occupancy was issued. This official classification has been on the books for more than two decades.

Yet James repeatedly filed permit applications identifying the same property as a four-family dwelling—a classification subject to different regulatory requirements under New York City building codes. Under NYC building code classifications, her property with five units would be classified as C2 (which applies to buildings with 5+ units), while her filings list it as C3 (which applies to 3-4 unit buildings). This fundamental contradiction between the long-established Certificate of Occupancy and her permit applications raises serious questions about regulatory compliance.

"While this was a long time ago, it raises serious concerns about the validity of Ms. James representations on mortgage applications" wrote Pulte, attaching several documents showing James had purchased another property with her father as a co-signer, but falsely listed the pair as "husband and wife" in 1983 and 2000.

James also granted power of attorney to Shamice Thompson-Hairston, a relative, to sign an Aug. 17, 2023, document authorizing the purchase of the first property, according to WCF.

"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 wrote, adding that James could be charged with wire fraud, mail fraud, bank fraud and making false statements to a financial institution.