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Trump Targets His NY Nemesis by Formally Demanding She Is Prosecuted

The president’s federal housing director is calling for an investigation into alleged mortgage fraud.

President Donald Trump’s federal housing director has asked the Department of Justice to investigate one of Trump’s most high-profile enemies for alleged mortgage fraud.

A criminal referral sent by Federal Housing Finance Agency Director William Pulte accuses New York Attorney General Letitia James of allegedly falsifying records to get better home mortgage terms from federally backed lenders.

James has been a target of Trump’s disdain since she successfully sued the Trump Organization for over-inflating the values of its properties to secure better loan terms. A judge found the organization had committed fraud for years and ordered it to pay a $454 million judgment.

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The criminal referral against her doesn’t carry any legal weight but lays out evidence of alleged wrongdoing on the part of James.

In 2023, just weeks before James brought her landmark civil fraud case against Trump, she co-signed a $218,000 mortgage with her sister to jointly buy a $240,000 home in Norfolk, Virginia, according to Pulte’s referral.

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The mortgage terms required both borrowers to use the home as their principal residence starting Oct. 30, 2023, and to maintain it for at least a year.

James also owns a building in Brooklyn that she has consistently listed as a four-unit building. Before she owned it, the certificate of occupancy said it was a five-unit dwelling.

By listing it as four units, she could have reduced her mortgage rate by as much as 1 percent under the federal Home Affordable Modification Program, according to Pulte.

“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte wrote in his referral, as reported by the New York Post.

The allegations were first reported by the White Collar Fraud blog in late March and early April.

“Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies—no matter who they are,” a spokesman from her office told the Post in a statement.

The Daily Beast has reached out for comment.

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The New York attorney general is also leading the legal challenge against the Trump administration’s efforts to cancel federal contracts, withhold congressionally appropriated funds, and purge the civil service.

Her office is additionally looking into whether insider trading took place last week when the markets were in freefall over Trump’s tariffs chaos.

The president stripped James of her security clearance in February. He appeared to welcome the news that she could now be investigated for fraud.

“Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY,” Trump wrote on Truth Social on Monday. “Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office.”

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