You know what they say—what goes around, comes around.
For New York Attorney General Letitia James, who built her career going after others for fraud, that saying might be hitting a little too close to home.
James, a Democrat who made headlines for taking on Donald Trump, is now facing serious allegations herself.
The FBI has opened a criminal investigation into claims that she lied on mortgage documents to get better loan terms on properties in Virginia and Brooklyn.
How it started How it’s going pic.twitter.com/swXa4Jfe6Z
— Libs of TikTok (@libsoftiktok) May 8, 2025
The Allegations
It all started when watchdog site White Collar Fraud revealed that James purchased a home in Virginia in 2023 and signed mortgage documents claiming it would be her “primary residence.”
That helped her secure lower interest rates—but here’s the kicker: New York law requires the state Attorney General to live in New York full-time.
James was very much in New York at the time, running her high-profile case against Trump.
By signing those mortgage forms, James agreed she’d move into the Virginia home within 60 days and live there for at least a year. But there’s no public evidence she ever made the move.
Critics say this could amount to mortgage fraud—a federal crime.
Making things worse, her official 2023 financial disclosure left out this transaction, even though she listed an older Virginia property from 2020. That’s raised even more red flags about transparency.
There are also reports she falsified documents to get better terms on a Brooklyn property, but those details are still emerging.
Who’s Investigating?
The FBI’s Albany office is now on the case, reportedly acting on a letter from William Pulte, a Trump appointee and head of the Federal Housing Finance Agency.
His letter to the DOJ laid out the accusations and urged a criminal probe.
On May 8, the New York Post and Reuters confirmed the investigation is underway.
The timing here is rich with irony. In 2024, James said this during her lawsuit against Trump:
“There cannot be different rules for different people… when powerful people cheat to get better loans, it comes at the expense of hardworking people.”
Political Drama—or Justice?
James’ attorney, Abbe Lowell, insists this is all politically motivated.
He says it’s just retaliation by Trump, who hasn’t been shy about wanting to see her investigated ever since she led the charge in a fraud case that cost him over $450 million in penalties.
And sure, the timing—just months after Trump’s re-election—does raise questions.
But that doesn’t mean the facts should be ignored. If she claimed to live somewhere she didn’t, that’s a problem.
Even worse, New York taxpayers are reportedly footing a $10 million legal defense fund for her.
Ordinary citizens don’t get that kind of support—and people are angry.
Bigger Questions
This story touches on bigger issues:
- Is there a double standard? Would a regular person get away with this?
- Does intent matter? If James never planned to live in Virginia, is that enough to prove fraud?
- Is she still eligible to serve as AG? New York law requires uninterrupted state residency. If she claimed to live out-of-state, she could be disqualified.
There’s also the issue of public trust. How can voters believe in equal justice when the state’s top law enforcer is accused of breaking the very rules she once enforced?
Whether this ends in charges or not, the damage is done.
The same woman who said “no one is above the law” is now being investigated for allegedly bending it to her benefit.
That’s not just ironic—it’s a slap in the face to every law-abiding American.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
