Trump Administration Seeks Criminal Charges Against New York AG Letitia James

Trump Administration Refers New York Attorney General Letitia James for Criminal Prosecution

Allegations of Mortgage Fraud Spark Political and Legal Firestorm

In a dramatic escalation of tensions between former President Donald Trump and New York Attorney General Letitia James, officials from the Trump administration have submitted a criminal referral to the U.S. Department of Justice, accusing James of mortgage fraud. The referral, disclosed to the BBC by a senior administration official, alleges that James falsified property and banking records to obtain favorable mortgage terms.

The move comes amid ongoing legal hostilities between Trump and James, who successfully pursued a civil fraud case against the former president in 2023. Trump is currently appealing the judgment in that case, which resulted in more than $350 million in damages against him and his business entities.

Specific Claims in the Referral

According to the referral filed by Federal Housing Finance Agency (FHFA) Director William Pulte, James is accused of misrepresenting a New York property as a four-unit building instead of five to qualify for more favorable loan terms. Pulte further alleges that James claimed a property in Norfolk, Virginia, as her primary residence in 2023—despite serving as New York’s top legal official, a role that requires state residency.

The FHFA argues that this misrepresentation enabled James to obtain lower interest rates on her mortgage, violating both financial regulations and residency laws.

"Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA, property as her primary home," the referral letter states.

James Denies Allegations, Accuses Trump of Retaliation

Attorney General James has not been charged with any crime. Her office released a sharp rebuke of the criminal referral, framing it as a retaliatory measure by the Trump administration.

"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 spokesperson said in a statement.

This is not the first time James has faced public attacks from Trump. During her successful civil lawsuit against the former president, Trump frequently labeled her as politically motivated and corrupt. He reiterated those accusations in a recent post on Truth Social, calling James a “wacky crook” and demanding her resignation.

White House, DOJ Yet to Comment on Prosecution Plans

The White House confirmed that no criminal charges have been filed against James and emphasized that the matter remains within the Justice Department’s jurisdiction. No timeline has been announced for potential DOJ action.

A DOJ spokesperson has yet to issue a public statement. The agency will now review the FHFA’s referral and determine whether a federal investigation is warranted.

Background: Longstanding Legal Conflict

Letitia James has been a consistent figure in legal proceedings against Trump. Her 2023 civil case accused Trump and his organization of grossly inflating property values to obtain favorable loans and insurance rates. In one instance, Trump was found to have overstated the size of his Trump Tower penthouse by three times its actual square footage.

James’ prosecution led to a court ruling holding Trump liable and imposing over $350 million in penalties—a decision now under appeal.

Meanwhile, Trump himself has faced multiple legal challenges. He was criminally convicted on 34 counts in a separate case involving falsified business records tied to hush-money payments made to adult-film actress Stormy Daniels.

Pattern of Retaliation?

Critics argue that the referral against James aligns with Trump’s stated campaign promises to seek retribution against political opponents. Since announcing his candidacy, Trump has repeatedly vowed to "take back control" of federal institutions and hold his adversaries accountable.

In addition to the referral against James, the Trump administration has revoked security clearances from her and other key legal figures, including Manhattan District Attorney Alvin Bragg. Bragg was responsible for the criminal hush-money case that led to Trump’s conviction.

Trump has also dismissed several prosecutors formerly affiliated with Special Counsel Jack Smith, who is overseeing two federal investigations into Trump’s conduct.

Legal Experts Weigh In

Legal analysts are divided on the potential outcome of the referral. Some view the allegations as potentially serious if substantiated, but others caution that the timing and context may complicate matters.

“There’s a fine line between legitimate criminal referrals and political retaliation,” said constitutional law expert Maya Garcés. “The Justice Department will need to tread very carefully to maintain public trust in its independence.”

Stay tuned to The Horizons Times for further developments on this high-stakes legal standoff and other major political stories unfolding across the United States.