New York Attorney General Letitia James is under federal investigation, with the FBI officially opening a criminal case that could spark a major legal and political showdown between state and federal authorities.
James, a prominent Democrat and outspoken critic of former President Donald Trump, is facing serious allegations that date back to March. She’s been accused of providing false information on federal documents to get better loan terms for various properties. Among the claims: misrepresenting her main residence as being in Virginia (even though she must legally reside in New York), giving incorrect details about a New York apartment building to avoid property requirements, and bizarrely listing her elderly father as her husband on paperwork.
Sources familiar with the investigation say the FBI is working closely with the U.S. Attorney’s Office to dig into documents tied to James’s 2023 purchase of a Virginia home. This issue was brought to light by Federal Housing Finance Agency Director William Pulte, who recently sent a formal letter questioning the legitimacy of the purchase and James’s residency status.
In his letter, Pulte questioned how James, who is required to live in New York, could be spending most of her nights at a home in Virginia. Reporters from the Daily Caller attempted to verify this by visiting the property, but were quickly turned away by a woman who refused to comment on James or their connection.
Pulte also accused James of downplaying the number of units in a Brooklyn brownstone she bought back in 2001—possibly in an attempt to dodge rules about fire alarms and safety standards.
So far, both James’s office and the U.S. Attorney’s Office have declined to comment, according to the New York Post.
This federal probe comes just after state lawmakers quietly inserted a $10 million provision into the state budget. That money would allow state officials to use taxpayer funds for legal defenses against federal lawsuits—a move some believe was made with James’s situation in mind. While Democrats in the legislature say the fund is for general use by state employees, it has raised eyebrows, especially given the possibility that the state’s top law enforcement official could soon be fighting fraud charges in court.
Ironically, the accusations against James bear a striking resemblance to the real estate fraud claims she once leveled at Donald Trump. In 2021, she pursued legal action against the Trump Organization for inflating property values—claims that a judge later upheld. At the time, James was vocal in her support of the ruling.
Now, the roles may be reversing. James has accused Trump of using the federal government to go after his critics, and in a recent fiery speech, she made it clear that she’s ready to fight.
“Do you expect me to sit down and watch this madness?” she asked. “You can come after me if you want—but I was elected to stand up. And I will keep fighting.”