Latest news with #mortgagefraud
CBS News
20-05-2025
- Politics
- CBS News
New York Attorney General Letitia James calls mortgage fraud probe of her "retribution," touts lawsuits against Trump
New York Attorney General Letitia James came out with guns blazing against the Trump administration on Tuesday, even as she forcefully defended herself over a mortgage fraud investigation launched by the Department of Justice. The probe has now been confirmed by the head of the FBI, who calls it "a case of great public importance." The investigation "is nothing more than retribution" Tuesday marked the first time James spoke before the Association For a Better New York in four years, and she had a terse message for the city's movers and shakers about the probe the feds have launched against her. "This investigation into me is nothing more than retribution. It's baseless," James said. The probe centers on charges she falsified records related to her home in Brooklyn and loan document for a Virginia property she was co-signing for a niece. "It has to do with with the fact that on a power of attorney I mistakenly indicated that I was a Virginia resident, but prior to that I indicated to the mortgage broker that, in fact, in bold capital letters, that I am not a Virginia resident and never will be," James said. Meanwhile, FBI Director Kash Patel confirmed that his agents are actively investigating the case and reporting directing to him and Deputy Director Dan Bongino. "This case, I can tell you, is being handled by professional pros, who are subject matter experts, reporting directly to headquarters," Patel said, "because it is a case of great public importance." James said it's retribution for the $455 million judgment her office won against President Trump and the Trump Organization for inflating property values to get more favorable loan and insurance terms. James expands on lawsuits filed against President Trump During her speech Tuesday, James bragged about filling 23 suits challenging the legality of the executive orders signed by the president that, she said, do harm to New Yorkers. "My message is clear: don't harm my city, don't harm my state. Otherwise, you've got to go through me, and you can attack me all you want. I take the attacks and just wake up the next day, say a prayer, and go to work," James said. James was especially intent on striking down the executive order about deporting migrants. She called it a "blemish on the moral fiber of our nation." James later told CBS News New York's Marcia Kramer she is willing to work with the president on issues New Yorkers care about, like Penn Station, affordable housing, and other major capital projects But there is still the matter of the $455 million judgment against the Trumps. It's on appeal and she's anxious to collect.
Yahoo
10-05-2025
- Business
- Yahoo
Feds must probe NYC Public Advocate Jumaane Williams for possible mortgage fraud in light of ‘serious' red flags surrounding Brooklyn home: pol
The feds and the city must probe whether NYC Public Advocate Jumaane Williams committed mortgage fraud and broke other laws in light of 'serious' red flags surrounding his troubled ownership of a Brooklyn property that ended in foreclosure, a fellow Democrat demanded this week. Councilman Robert Holden (D-Queens) fired off letters Monday to Federal Housing Finance Director William Pulte and NYC Department of Investigation Commissioner Jocelyn Strauber in the wake of The Post's exclusive last week revealing how the socialist pol lost a two-family home in Canarsie to Bank of America after he stopped paying the mortgage and racked up nearly $1 million in debt over 15 years. Holden in both letters said public records suggest Williams misrepresented his financial situation for years by collecting rent from multiple tenants living on the property while simultaneously being delinquent on a federally backed mortgage. 'If Mr. Williams misrepresented his financial position, rental income, or occupancy status in mortgage applications or ongoing certifications, he may have violated federal statutes governing mortgage fraud and bank fraud,' Holden wrote Pulte. 'This matter is particularly troubling given Mr. Williams' prominent role in publicly criticizing landlords through the City's 'Worst Landlords Watchlist' while allegedly engaging in similar misconduct himself. The apparent hypocrisy, combined with the scale of financial mismanagement and possible deception, undermines public confidence in elected leadership.' Williams – who earns $184,000 annually and collected thousands of dollars a year renting the home to multiple tenants – stopped making his $1,344 monthly mortgage payments in 2010, according to records. Holden in his letter to Strauber questioned whether Williams broke New York law by 'knowingly making false statements' in his annual financial disclosure filings. Williams, who served as a Brooklyn councilman from 2010 to March 2019 before being elected public advocate, didn't list earning rental income in many of his past yearly filings dating back over a decade — despite court records showing tenants living on his property. But he did list earning anywhere from $5,000 to $55,000 in rent in both 2022 and 2023, according to his most recent disclosure statements. Williams was slapped with a foreclosure action in 2014 by Bank of America over a $389,600 mortgage he took out on the house in 2006 to finance a vegan sandwich shop in Park Slope that went belly up two years later. Williams has long blamed his financial woes on the terms of his loan and tenants who didn't pay rent. The house was listed for sale through a foreclosure auction last month, but it reverted back to Bank of America ownership after not a single bidder offered a price exceeding the debt owed, which is now up to $944,582, according to The DOI and the Federal Housing Finance Agency declined comment. Williams' spokesman Kevin Fagan shot down the claims, saying Holden 'has every right to request wasting time and money investigating a decade-old non-story on a false premise — though it would have been more efficient if he'd simply looked at the public records and seen that the public advocate has accurately reported any rent collected and filed required disclosures.'
Yahoo
09-05-2025
- Politics
- Yahoo
Letitia James dodges questions about mortgage fraud scandal outside NYC home, pretends to be on the phone
Embattled New York Attorney General Letitia James ducked reporters outside her Brooklyn home Wednesday, refusing to answer questions about her simmering mortgage fraud scandal. James, who infamously declared 'no one is above the law' when prosecuting former President Donald Trump, feigned talking on her cellphone as reporters peppered her with questions about her getting slapped with a federal criminal referral alleging mortgage fraud. According to a letter obtained by The Post, James, who draws an annual salary of $220,000, allegedly 'falsified records' to get sweetheart home loans for a Virginia property she claimed as her 'principal residence' in 2023 — while she was still serving as a New York state prosecutor. View this document on Scribd The letter, penned by Federal Housing Finance Agency (FHFA) Director William Pulte to Attorney General Pam Bondi and Deputy AG Todd Blanche, also claims James purchased a five-family dwelling in Brooklyn in February 2001 that she 'consistently misrepresented' as only having four units, both in building permit applications and mortgage documents. Trump administration refers NY AG Letitia James for potential prosecution over alleged mortgage fraud Conservatives celebrate after Trump admin refers NY AG Letitia James for potential prosecution: 'Karma' Letitia 'no one is above the law' James dodges questions about mortgage fraud scandal outside NYC home, pretends to be on phone Pulte included several documents in the letter that also showed James purchased a property in 1983 and 2000 — co-signed by her father — but falsely listed the pair as 'husband and wife.' 'Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,' he told Bondi and Blanche. Pulte said this could amount to criminal charges, including wire fraud, mail fraud, bank fraud and false statements to a financial institution, among others. '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 for James' office said in a statement.
Yahoo
09-05-2025
- Politics
- Yahoo
FBI opens formal criminal probe into New York AG Letitia James over alleged mortgage fraud
The FBI and US Attorney's Office in Albany have launched a criminal investigation into mortgage fraud claims against New York Attorney General Letitia James, a source familiar with the probe told The Post. The investigation, first reported by the Albany Times Union, follows a request that the Justice Department investigate James, sent by Federal Housing Finance Agency Director William Pulte to the Justice Department last month. New York's Northern District, where Pulte's referral was steered, is led by US Attorney John Sarcone III, an ally of President Trump. Rep. Elise Stefanik, who reps the district where the investigation was initiated, commended the FBI and Albany prosecutors. 'The investigation into Letitia James is a vital step toward justice,' the Republican congresswoman said in a statement. 'I will continue to fight to expose NY corruption, protect constitutional rights, and hold these failed Democrat leaders in NY accountable.' Pulte's letter alleged James 'falsified records' to obtain favorable loans on a home she purchased in 2023 in Virginia and a Brooklyn brownstone she's owned since 2001. The Democrat also allegedly indicated the Virginia home would be her 'principal residence' while acting as New York's top cop, and that she misrepresented the number of units in her Brooklyn residence. '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 told Attorney General Pam Bondi. Trump administration refers NY AG Letitia James for potential prosecution over alleged mortgage fraud Conservatives celebrate after Trump admin refers NY AG Letitia James for potential prosecution: 'Karma' Letitia 'no one is above the law' James dodges questions about mortgage fraud scandal outside NYC home, pretends to be on phone That could amount to criminal charges, including wire fraud, mail fraud, bank fraud and false statements to a financial institution, among others, Pulte added. The FBI and US Attorney's Office in Albany didn't immediately return requests for comment Thursday. James' office declined to comment. She has previously dismissed the allegations as 'baseless' and claimed the referral was part of a 'revenge tour' by the president because she brought civil fraud charges against him and his company, the Trump Organization. James famously professed, 'no one is above the law,' when she launched her investigation into Trump in 2019, that ended with a $454 million judgment against him and his real estate firm. The AG's Office has retained high-powered attorney Abbe David Lowell, one of Hunter Biden's top lawyers in the scandal-scarred first son's special counsel probe. Lowell was retained by the attorney general's office rather than James in her personal capacity, according to a Times Union report, which means New York taxpayers will eventually foot the bill for his services. Democrats in Albany are expected to sign off on a provision creating a $10 million slush fund state officials can tap into to cover 'any reasonable attorneys' fees and expenses incurred,' including for probes not directly related to their employment. James plans to rely on both state funds and a private legal defense fund to fight the battle, a spokesman for her office told The Post on Wednesday. Lowell said in a blistering letter to Bondi last month that the mortgage fraud allegations were nothing more than a meritless assault in Trump's 'revenge tour' against the state's top prosecutor. 'These baseless and long-discredited allegations, put to rest by my April 24 letter to the Department of Justice, are suddenly back in the news just days after President Trump publicly attacked Attorney General James,' Lowell said in a statement Thursday. 'This appears to be the political retribution President Trump threatened to exact that AG Bondi assured the Senate would not occur on her watch. If prosecutors are genuinely interested in the truth, we are prepared to meet false claims with facts.' Last month, America First Legal (AFL), a Trump administration-aligned legal watchdog group, filed a complaint against James with the New York State Unified Court System's Committee on Professional Standards, which oversees disciplinary matters for lawyers licensed in the state. 'If Ms. James has engaged in fraud by deceiving her lenders and the government to obtain financial benefits she would otherwise not be entitled to, then she has engaged in professional misconduct and violated her obligations as a lawyer and is subject to discipline by the New York Bar,' AFL's April 24 letter reads. — Additional reporting by Vaughn Golden and Craig McCarthy
Yahoo
09-05-2025
- Politics
- Yahoo
AG Letitia James heckled over mortgage fraud case at town hall: ‘Apologize to Donald Trump'
New York State Attorney General Letitia James was heckled by a Trump supporter at a community hearing where she claimed the freshly opened federal criminal probe into her alleged mortgage fraud is 'baseless.' James was interrupted at a community impact hearing in Westchester on Thursday night, just hours after the Trump administration opened a formal criminal probe into James over the alleged mortgage fraud involving her Brooklyn and Virginia properties. 'Apologize to Donald Trump for wasting millions of dollars in the state of New York,' the MAGA booster shouted from the audience. The interruption was met with a chorus of boos from the New York crowd as the demonstrator was escorted from the meeting. 'Everyone knows those allegations are baseless,' James said in response. 'We want to thank him for coming, we respect all opinions,' the AG added. Despite James' cool display, she is feeling the heat from the Trump Department of Justice, which opened a criminal investigation into the AG after receiving a complaint from the Federal Housing Finance Agency last month. The government alleges that James falsified records to meet certain lending requirements to receive favorable loan terms. Feds claim James misrepresented the number of units in her Brooklyn home and falsely stated that a home in Norfolk, Virginia, was her principal residence. The alleged infractions could amount to criminal charges stemming from wire fraud, mail fraud, bank fraud, and making false statements to a financial institution. New York state taxpayers may also be on the hook for her legal fees that stem from any probe or prosecution, according to a new item in the state budget. Alongside James at the Westchester meeting Thursday were California AG Rob Bonta, Illinois AG Kwame Raoul, Minnesota AG Keith Ellison, and New Jersey AG Matt Platkin.
