In what many Trump supporters see as long-overdue accountability, New York Attorney General Letitia James now finds herself referred to the Department of Justice for potential criminal prosecution. The Federal Housing Finance Agency (FHFA) has accused James of mortgage fraud related to properties in Virginia and New York, according to an April 14 letter obtained by multiple news outlets.
This development comes after James led a years-long legal campaign against former President Donald Trump that resulted in a $454 million judgment currently under appeal. For many observers, the timing represents a form of political karma, as the prosecutor who relentlessly pursued Trump now faces serious allegations herself.
The Allegations Against James
FHFA Director William Pulte’s referral letter to Attorney General Pam Bondi alleges that James falsified records “to meet certain lending requirements and receive favorable loan terms” on multiple properties. According to the FHFA, James claimed a Norfolk, Virginia property as her principal residence in 2023 mortgage documents, despite being required as New York’s Attorney General to maintain her primary residence in New York State, as reported by Fox News.
The referral also claims James misrepresented a Brooklyn property as having four units rather than five to qualify for more favorable loan terms, and alleges that decades ago, James and her father signed mortgage documents identifying themselves as “husband and wife.”
According to the National Mortgage Professional, the FHFA contends these actions could violate federal statutes including wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.
The Irony of James’ Predicament
The referral comes against the backdrop of James’ aggressive legal pursuit of Trump. In 2022, James filed a civil lawsuit against Trump and the Trump Organization after a lengthy investigation. Her case alleged that Trump and his organization inflated asset values to secure more favorable loan terms—allegations strikingly similar to those now facing James herself.
During her 2018 campaign for Attorney General, James had vowed to pursue Trump, whom she called an “illegitimate president” and an “embarrassment” as noted by Fox News. This history has led some legal experts, including George Washington University law professor Jonathan Turley, to point out what he called the “perfectly crushing” irony of the situation.
“This is a person who prosecuted Trump for everything short of ripping a label off a mattress,” Turley told Fox News, adding that if “we apply the Letitia James standard that she created, there’d be little question here.”
Trump’s Response and Administration Actions
This referral unfolds following Trump’s decisive return to the White House after defeating Kamala Harris in the 2024 election. In what many see as a first step toward accountability, President Trump has already taken action against James, revoking her security clearance in February 2025.
In a recent Truth Social post, Trump wrote that “Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY.”
For years, James invoked the principle that “no one is above the law” when pursuing cases against Trump. Now, that same principle appears to be applied to her own actions, much to the satisfaction of those who believed the legal system had been weaponized against political opponents.
Potential Legal Consequences
If the Department of Justice decides to pursue charges based on the FHFA referral, James could face significant legal penalties. The potential federal charges mentioned in the referral include wire fraud (18 U.S.C. § 1343), mail fraud (18 U.S.C. § 1341), bank fraud (18 U.S.C. § 1344), and making false statements to financial institutions (18 U.S.C. § 1014).
These are serious felony charges that carry substantial penalties. Wire and mail fraud can result in prison sentences of up to 20 years per count, while bank fraud and making false statements to financial institutions can carry sentences of up to 30 years per count. Financial penalties could include fines of up to $1 million, depending on the specific charges.
The severity of any potential sentence would depend on numerous factors, including the dollar amount involved in the alleged fraud, whether there were multiple counts, and James’s lack of prior criminal history. Under federal sentencing guidelines, mortgage fraud cases involving similar allegations typically result in sentences ranging from probation to several years in prison for first-time offenders.
Beyond potential criminal penalties, a conviction would almost certainly end James’s legal career and force her resignation as New York Attorney General, creating a dramatic conclusion to her legal battles with Trump.
What Comes Next
The Department of Justice has not yet indicated whether it will pursue an investigation based on the referral. Attorney General Bondi said in a Fox News interview that her office had just received the referral and “No one in my office has read it yet. We haven’t looked at it. Of course, we’ll be reviewing it.”
New York City trial attorney Nicole Brenecki observed to Newsweek that James “brought a high-profile case against Donald Trump for civil fraud. Signing a false declaration to obtain any benefits generally constitutes civil fraud. As such, Ms. James will likely be scrutinized and criticized by her political opponents for doing exactly what she accused Trump of in that case.”
For many Americans who viewed the legal actions against Trump as politically motivated “lawfare,” this referral represents what they see as a long-awaited reckoning. Whether or not the DOJ pursues charges, the allegations themselves have already delivered what Trump supporters consider poetic justice: James aggressively pursued civil fraud charges against Trump despite testimony from banks stating they weren’t victims and suffered no losses, yet she now potentially faces serious criminal prosecution herself, with prison time at stake rather than just financial penalties. Even more consequential, since James allegedly listed her primary residence as Virginia, the Trump administration could potentially challenge her legal right to continue serving as New York Attorney General, as state law requires her to maintain New York residency. This stark contrast between the civil penalties she sought against Trump and the criminal penalties she herself might face represents an extraordinary reversal of fortunes in this years-long legal and political saga.
DISCLAIMER: The above article is an opinion piece that represents the views of the author. While based on reported allegations and public statements, this article does not presume the guilt or innocence of any party mentioned. The allegations against New York Attorney General Letitia James remain unproven, and she is entitled to the presumption of innocence. This article analyzes public information available at the time of writing, but new facts may emerge that could change the context or understanding of events described herein. Readers are encouraged to consult multiple sources and form their own informed opinions on this matter.
