America First Legal files state bar complaint against New York Attorney General Letitia James

America First Legal has filed a state bar complaint against New York Attorney General Letitia James over her alleged mortgage fraud.

The complaint was filed in New York on Thursday – 10 days after U.S. Federal Housing Finance Agency Director William J. Pulte sent a criminal referral to the Justice Department.

Pulte alleged that James, a Democrat, "in multiple instances, falsified bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms."

"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," Pulte also said.

In the first instance, James purchased a property in Norfolk, Va., two years ago and indicated it was her primary residence even though she was serving full-time in New York as the attorney general, Pulte alleged.

In the second instance, James was accused of understating the number of housing units in a property she owned in Brooklyn in an apparent attempt to get it treated with a better mortgage interest rate, according to Pulte's letter.

If James committed mortgage fraud, then AFL alleges that should would have violated Rules 8.4(b) and 8.4(c) of the New York Rules of Professional Conduct. 

The two rules prohibit attorneys from “engag[ing] in illegal conduct that adversely reflects on the lawyer’s honesty, trustworthiness, or fitness as a lawyer,” and from “engag[ing] in conduct involving dishonesty, fraud, deceit, or misrepresentation.”

"If what Director Pulte uncovered is true, then we have a sitting state Attorney General who made false certifications to the United States in return for federal benefits," AFL Vice President Dan Epstein said in a statement Monday.

"But why worry about committing fraud against American taxpayers when you are willing to buck your ethical duties to the bar? For a state prosecutor who has maligned the President of the United States for political gain, public accountability will serve as a cure to Letitia James’ endless lawfare and abuse of power."

James denied the allegations earlier this month.

"Let me just say to all New Yorkers and to all Americans: the allegations are baseless," James said. "The allegations are nothing more than a revenge tour," "As you know, as any good attorney, I will not litigate this case in a camera. It is important that we respond to these allegations at the appropriate time and in an appropriate way."