In a significant development, the Trump administration has initiated a potential criminal prosecution against New York Attorney General Letitia James, following her successful civil fraud case against former President Donald Trump. The Federal Housing Finance Agency (FHFA) director William Pulte submitted a criminal referral to Attorney General Pam Bondi and Deputy AG Todd Blanche, accusing James of mortgage fraud. The allegations center on James co-signing a 2023 Virginia home loan for her niece, where she allegedly misrepresented the property as her primary residence to secure a lower interest rate. James and her office dismiss these accusations as politically motivated retaliation for her legal actions against Trump .Law & Crime+6Axios+6AP News+6AP News+1ElHuffPost+1
The referral includes possible charges such as wire fraud, mail fraud, bank fraud, and making false statements to a financial institution. Notably, James had previously won a civil fraud case against Trump, resulting in a $454 million judgment for fraudulent real estate practices. The Trump administration’s move has been criticized as an attempt to undermine James’ credibility and deter future legal actions against the former president .FirstpostAxios+3Reuters+3Firstpost+3
James has firmly rejected the allegations, labeling them as baseless and part of a broader campaign to intimidate and silence her. She emphasized her commitment to upholding the law and vowed not to be deterred by what she perceives as politically motivated attacks .Axios
This development underscores the escalating tensions between the Trump administration and state-level officials who have pursued legal actions against the former president. The outcome of this referral could have significant implications for the balance of power between federal and state authorities and the extent to which political considerations influence legal proceedings.
