The Trump administration is seeking a federal criminal prosecution of New York Attorney General Letitia James, accusing the state’s top prosecutor of mortgage fraud.
According to Federal Housing Finance Agency (FHFA) officials, James allegedly “falsified bank and property records to land more favorable mortgage terms.” In a letter to U.S. Attorney General Pam Bondi, the Trump administration suggests that James belied the size and nature of multiple properties, including one in Norfolk, Virginia, which she allegedly claimed as her primary residence while serving as New York’s top prosecutor.
The FHFA has made a formal criminal referral to the Justice Department, which the White House confirmed.
James’s spokesperson responded to the lawsuit, noting that she “will not be intimidated by bullies—no matter who they are.”
My office is leading a coalition to sue Trump and stop him from trying to cut access to hundreds of millions of dollars in funding that supports low-income and unhoused students and the long-term effects the pandemic had on our kids.
— NY AG James (@NewYorkStateAG) April 10, 2025
I'll always fight to protect our students.
In 2023, James secured a landmark civil fraud victory against Trump after accusing him of inflating the value of his properties by hundreds of millions of dollars, to obtain better loan and insurance terms. Trump’s business empire was found liable for fraud, and he was ordered to pay over $350 million in damages.
Trump responded by lashing out at James, repeatedly using his Truth Social platform, labeling James as “corrupt” and “biased.” In his most recent post, he called for her resignation.
He also filed to appeal the decision.
“We trust that the Appellate Division will overturn this egregious fine and take the necessary steps to restore the public faith in New York’s legal system,” Trump lawyer Alina Habba said in a statement.
In March 2023, James announced her office’s decision to sue the Trump administration to stop dismantling the Department of Education and protect students.
“This administration may claim to be stopping waste and fraud, but it is clear that their only mission is to take away the necessary services, resources, and funding that students and their families need,” her statement reads. “Firing half of the Department of Education’s workforce will hurt students throughout New York and the nation, especially low-income students and those with disabilities who rely on federal funding. This outrageous effort to leave students behind and deprive them of a quality education is reckless and illegal. Today I am taking action to stop the madness and protect our schools and the students who depend on them.”
Before he was elected in November, Trump alluded to taking revenge on his political foes if he made it to the White House—and he has.
