Donald Trump’s administration is accusing New York Attorney General Letitia James of mortgage fraud, and has made a criminal referral to the the justice department seeking federal prosecution.
Officials with the Federal Housing Finance Agency (FHFA) allege James falsified bank and property records to receive better loan agreements, an administration official told the BBC.
James won a civil case against Trump in 2023 that accused him of overvaluing his properties in order to take out loans with favourable terms. He is currently appealing against the judgment.
No charges have been filed against James. Her office has accused the Trump administration of weaponizing the US 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,” a spokesperson said in a statement.
Throughout his court trials after leaving office in 2021, Trump repeatedly said he believed his political opponents were weaponizing the justice system against him.
No charges have been filed, the White House confirmed, adding that more details would follow if the justice department took action.
In a letter obtained by US media to US Attorney General Pam Bondi, FHFA Director William Pulte accused James of misrepresenting a building in New York as a four-unit structure instead of five to get a better loan deal.
Pulte also alleged that James claimed a property in Norfolk, Virginia, was her primary residence in 2023 – when she was the top state prosecutor – to secure a lower interest rate on a loan. Mortgages for primary residences typically come with better terms.
“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 said.
In a post on Truth Social on Monday, Trump called James a “wacky crook”.
“Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, immediately,” he wrote.
Trump’s family business was found liable in 2023 of falsifying records and financial statements in order to get better terms on loans and insurance deals.
In the case brought by James, a judge ruled that the Trump Organization was liable for overvaluing a penthouse at Trump Tower in New York by claiming that it was three times its actual size, among other allegations.
Trump was ordered to pay more than $350m (£264m) in damages in the civil fraud case, which is going through the appeals process. During the case, Trump frequently attacked James, calling her “biased and corrupt”.
Trump was criminally convicted for falsifying business records in a separate case. Last year, he was found guilty on 34 counts for fraudulently classifying reimbursements for a hush-money payment made to adult-film actress Stormy Daniels.
During his campaign, Trump promised to seek revenge against many of his perceived political enemies – including former President Joe Biden – and others who have opposed him.
He has revoked the security clearances – which allows people to access classified material – of several officials, including James and Manhattan District Attorney Alvin Bragg, who brought the criminal hush-money case,
He has fired several prosecutors who worked for special counsel Jack Smith on two criminal probes against him. He has also taken actions against law firms with attorneys who were involved in investigations into allegations against him, including the firm that employed former special counsel Robert Mueller.
By BBC News
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