Criminal referral against Adam Schiff details possible violations of federal laws

The criminal referral filed by the director of the U.S. Federal Housing Finance Agency provides further details about the mortgage and tax scandal plaguing Sen. Adam Schiff, D-Calif., and identifies the array of federal laws that the politician may have violated by improperly claiming two primary residences.

The referral, sent to Attorney General Pam Bondi by Director William Pulte, alleges that Schiff may have violated several statutes—including government wire fraud, mail fraud, bank fraud, and false statements to a financial institution—by claiming two homes, one in Maryland and the other in California, as primary residences. 

"Based on media reports, Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003-2019 for a Potomac, Maryland-based property," wrote Pulte, who leads the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System. 

A “pattern of possible occupancy misrepresentation”

“As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the security and stability of the U.S. mortgage market,” Pulte also wrote in the referral, which was obtained by Just the News. 

You can read the referral below: 

Fox News Digital, which first covered the referral, also reported that Pulte received a memo on Monday from Fannie Mae financial crimes investigators, concluding that Schiff engaged in a “pattern of possible occupancy misrepresentation.”

Where does Schiff live: Maryland or California?

Last year, Just the News reported that then-Congressman Schiff had repeatedly declared in mortgage and election filings that both of his homes were his "principal residence." But, according to the federally-backed lender Freddie Mac, Americans are only allowed to claim just one home as a primary residence, the one where they live for a majority of the year. 

In at least three instances, documents show that in 2009 and again in 2011 and 2013, Schiff refinanced his Maryland home and declared it was his “principal residence” at the same time he had declared his principal residence was in California, according to 2009 and 2011 financing docs for his Burbank condo.

The conflicting declarations were not resolved until 2020 when Schiff suddenly changed the notations on his Maryland mortgage to be a secondary residence. 

The referral concludes that Schiff appeared to falsify records in order to receive both favorable treatment for loans and tax benefits in his home state of California that amounted to thousands of dollars in savings. “Primary residence mortgages receive more favorable loan terms, including lower interest rates, than secondary residence mortgages,” Pulte wrote. 

Additionally, Schiff also took a homeowner’s tax exemption on his Burbank, California property by claiming it as his primary residence for a $7,000 reduction in the property tax, according to Pulte. 

No one is above the law

Pulte also said that his agency believes that Schiff’s efforts could amount to violations of several statutes, making him potentially liable for wire fraud, mail fraud, bank fraud, and false statements to a financial institution. Punishment for these acts, if Schiff is charged, tried and convicted, could run up to 20 years in prison and a fine of up to $250,000.

“No one is above the law…that story outlined the pattern of apparent mortgage fraud where Adam Schiff, since 2003 has owned homes in either Maryland or Burbank, California, refinancing them several times along the way and claiming that both homes were his primary residence,” Seamus Bruner, Director of Research at the Government Accountability Institute told the Just the News, No Noise TV show. Bruner reported on the potential mortgage fraud in October 2023, writing for Just the News. 

Schiff is only the latest and most prominent Democrat to face allegations of wrongdoing. Similar allegations arose against New York Attorney General Letitia James earlier this year. Both are avowed and media-eager anti-Trump critics and prominent proponents of the legal cases that beset the former president during the 2024 campaign.

In April, Pulte also referred James to the Justice Department for possible prosecution over alleged mortgage fraud, Just the News reported. 

"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," Pulte wrote. 

"This has potentially included: 1) falsifying residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate; and 2) misrepresenting property descriptions to meet stringent requirements for government backed loans and government assistance" he noted.

FBI Director Kash Patel confirmed in May that James was the subject of an active investigation, telling CNN that “this case, I can tell you, is being handled by our professional pros who are subject-matter experts, reporting directly to headquarters, which reports to (Deputy Director Dan Bongino) and I.”

"This investigation into me is nothing more than retribution. It's baseless," James said, according to CBS News. Reportedly, on Capitol Hill on Wednesday, Schiff didn't answer a reporter who asked, "Do you have a response to Trump saying [on social media] you’re guilty of mortgage fraud?" Schiff just replied, "Have a nice day."