Mortgage Fraud Allegations Rock AG James 

United States: A FBI investigation has been opened up on mortgage fraud allegations against New York Attorney General Letitia James amid rising tensions with former President Donald Trump, as reported by Reuters. 

Trump aims at James over a legal feud. 

Trump had attacked James after her legal move on him, including a civil suit on fraud that had the former president to pay millions of dollars in fines. His legal war with James continues to heat up; Trump demands the prosecution of both James and the arbiter of the case. 

Allegations and Legal Back-and-Forth 

The mortgage fraud investigation comes from allegations made by his director William Pulte, Federal Housing Finance Agency, that James employed falsified records to obtain loans for properties in Virginia and Brooklyn. James’ lawyer has thrown these allegations out as “baseless and long-discredited” and accused the investigation as politically motivated, as reported by Reuters. 

🚨🚨The FBI has launched an investigation into New York AG Letitia James over alleged mortgage fraud.

James, who for years weaponized her office against the right – Trump included – has been accused of falsifying records to obtain favorable loans on a home she purchased in 2023. pic.twitter.com/4OJfdzP5tn

— Patrick Casey (@restoreorderusa) May 8, 2025

Effect of James’, Legal Move on Trump. 

James filed a lawsuit suit against Trump in 2022 for inflating his net worth for better loan terms while his businesses paid millions of dollars in penalties. Further, James has gone to court against Trump’s policies, and he has aligned himself with other Democratic attorneys general to sue his agenda.