• Federal investigators are probing New York Attorney General Letitia James over alleged mortgage fraud linked to her properties.
• A Justice Department special prosecutor urged James to resign, framing it as an act of “good faith.”
• The controversy draws parallels to her past civil fraud case against President Trump, heightening political tensions.

NEW YORK, N.Y., TDR — The Justice Department’s Weaponization Working Group has urged New York Attorney General Letitia James to resign as investigators weigh potential charges over alleged mortgage fraud tied to her real estate holdings. The push for her resignation, delivered in an August 12 letter by special prosecutor Ed Martin, comes as the probe has widened to include both her Brooklyn townhouse and a Virginia property purchased in 2023.

Martin argued that James’ resignation would be an act of “good faith,” writing that stepping aside would “serve the good of the state and nation” while sparing the public from a lengthy legal fight. He added: “Her resignation from office would give the people of New York and America more peace than proceeding.”

The allegations center on whether James misrepresented property records to secure loans through Fannie Mae and Freddie Mac. Investigators allege that her Brooklyn property — listed publicly as a five-unit dwelling — was filed as a four-unit structure on mortgage applications, enabling her to qualify for preferential financing.

Political Fallout

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James, long a political adversary of President Trump, previously secured a civil fraud ruling against him in 2024, accusing his company of inflating property values for loans and insurance. Critics now argue the parallels between her case against Trump and the current probe into her own mortgage filings expose deep political hypocrisy.

James has so far remained silent, declining to address Martin’s letter or the allegations in public. But her attorney, Abbe Lowell, blasted Martin’s maneuver as an abuse of prosecutorial discretion. “The DOJ has firm policies against using investigations for political ends,” Lowell said, rejecting Martin’s suggestion that she step aside.

The Investigation

The probe, referred in April by Federal Housing Finance Agency Director Bill Pulte, alleges James falsified loan applications by claiming her Norfolk, Virginia property was her “principal residence,” while simultaneously maintaining her Brooklyn townhouse as her home address.

Grand juries in both Virginia and Maryland are now weighing potential indictments against James, as well as against California Democrat Adam Schiff, who faces separate allegations of misreporting property classifications.

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During a recent visit to James’ Brooklyn property, Martin was spotted by a New York Post reporter observing the structure and speaking with neighbors. Investigators noted four side-entry doorbells marked “1 Floor,” “2 Floor,” “3A,” and “3B,” in addition to the main entrance — evidence they say supports the claim the property was improperly reported as a four-unit building.

Sovereignty and Politics

The case has intensified broader debates over the role of the Justice Department in politically charged prosecutions. While allies of James insist she is being targeted for her pursuit of Trump, critics say the evidence of mortgage misclassification speaks for itself.

Political analysts note that Martin’s public request for her resignation mirrors past clashes between U.S. prosecutors and high-profile officials. “The optics here matter as much as the facts,” one legal scholar observed. “When a prosecutor is urging resignation before charges, it amplifies the perception of political retaliation.”

Still, the potential stakes for James are profound. If convicted, she could face disbarment, removal from office, and criminal penalties.

For now, James remains attorney general, presiding over an office that only last year declared victory in its pursuit of Trump. Whether she survives the scrutiny over her own financial filings may determine not only her political career but also the credibility of the prosecutorial standard she once championed.

Does the top cop of New York now face the same justice she imposed on others?

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