FBI investigating NY Attorney General Letitia James over alleged mortgage fraud: Reports

The investigation stems from a referral by the federal government's main housing loan agency, which included evidence of irregularities in a series of home loans James obtained, including for a property in Virginia that she claimed on a form was her primary residence.

Published: May 8, 2025 6:29pm

Federal investigators have reportedly launched a probe into New York Attorney General Letitia James over allegations that she committed mortgage fraud, according to several news outlets on Thursday.

The investigation stems from a referral by the federal government's main housing loan agency, which included evidence of irregularities in a series of home loans James obtained, including for a property in Virginia that she claimed on a form was her primary residence. 

James has denied any wrongdoing and her office has since said that James' niece lives at the Virginia residence.

Law enforcement sources told the Times Union newspaper and the Guardian that the investigation is being led by the FBI’s Albany office, and the latter also reported that a federal grand jury has been impaneled to hear evidence in the Eastern District of Virginia.

It is not clear when the formal investigation was opened, but it has gained steam in recent weeks, according to the Guardian.

Critics have accused the investigation of being politically motivated, because of James' history of battling the Trump administration and President Donald Trump's organization, which resulted in a $464 million civil fraud judgment.

“Let me just say to all New Yorkers and to all Americans: the allegations are baseless. The allegations are nothing more than a revenge tour,” James said last month. “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."

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.

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