Mortgage Fraud Probe Against Letitia James Gaining Momentum Towards Indictment

The U.S. Department of Justice’s investigation into New York Attorney General Letitia James is intensifying, with prosecutors in Virginia continuing to examine allegations of mortgage fraud that could lead to formal charges. While early stages of the probe faced hurdles, recent developments suggest that federal investigators are keeping the path toward indictment open.

The case, now overseen by senior DOJ official Ed Martin in the Eastern District of Virginia, stems from claims that James misrepresented her residency on mortgage applications. Federal Housing Finance Agency Director Bill Pulte initially raised concerns pointing to discrepancies in documents tied to a Virginia property. The allegations mirror an earlier inquiry into Federal Reserve board member Lisa Cook.

Although former lead U.S. attorney Erik Siebert resigned in mid-September 2025 after admitting there was not enough evidence at the time to proceed, his departure has not slowed momentum. President Donald Trump publicly pressed DOJ leadership to act quickly, warning that credibility was at stake if the case stalled further. That pressure, coupled with Martin’s hands-on approach, has kept the investigation moving forward.

Prosecutors are focused on whether James knowingly provided false information on loan applications, particularly in relation to her Virginia property. Since May 2025, investigators have been combing through mortgage documents, emails, and other records to establish intent. While some of the paperwork shows James marked the property as not her primary residence, prosecutors are weighing whether inconsistencies or other evidence may suggest otherwise.

James’s legal team has maintained that she did nothing improper, highlighting repeated documentation in which she explicitly denied using the property as her main residence. Yet the investigation has widened, with Martin also personally visiting one of James’s New York properties in August as part of the fact-gathering process.

Alongside the mortgage case, James faces a separate grand jury inquiry in Albany on accusations of deprivation of rights, which centers on alleged constitutional violations. Combined, the overlapping investigations are creating a growing legal threat for New York’s top prosecutor.

James, a longtime critic of Trump who has successfully pursued civil cases against him, has dismissed the probe as politically motivated. Still, with federal prosecutors showing no signs of backing down and multiple avenues of inquiry open, the possibility of an indictment now looms larger than it did just weeks ago.

Mortgage Fraud Probe Against Letitia James Gaining Momentum Towards Indictment