AG Letitia James reaps what she sows after leveling ‘laughable’ case at Trump: expert
Fox News Digital recently reported on the Trump administration’s criminal referral targeting New York Attorney General Letitia James for alleged mortgage fraud. According to New York City real estate attorney Pierre Debbas, this case likely would not have unfolded if not for the years of legal battles between James and former President Donald Trump.
Debbas explained that James had previously pursued a civil fraud case against Trump, accusing him of inflating property values to obtain more favorable loans, insurance coverage, and tax deductions. This case resulted in a $454 million judgment against Trump in 2024. Debbas characterized James’ case against Trump as a politically motivated manipulation of the legal system.
Now, the tables have turned, with the Trump administration alleging that James falsified mortgage records to secure more favorable loans for a property she purchased in Norfolk, Virginia. The Federal Housing Finance Agency sent a criminal referral to the Department of Justice, claiming that James falsely identified the property as her primary residence when, as a statewide elected official in New York, she is required to live in the Empire State.
Debbas explained the significance of identifying a property as a primary residence, noting that banks offer lower interest rates for primary residences, as homeowners are less likely to default on such loans compared to second homes or investment properties. Misidentifying a property to obtain more favorable loan terms constitutes mortgage fraud, he added.
While Debbas acknowledged that this type of fraud is common in the real estate market, he emphasized that it does not excuse the behavior. He noted that banks have the right to call the loan, force the borrower to pay it off, and pursue foreclosure if mortgage fraud is discovered. Debbas argued that, while serious, this type of fraud typically does not rise to the level of criminal activity.
The ongoing legal battle between James and Trump has added another layer of complexity to the situation. James campaigned for the attorney general job in 2018 on a platform of aggressively pursuing legal charges against Trump, whom she referred to as a “con man.” Her office has faced criticism for its handling of the case against Trump, with some questioning the motivations behind the legal challenges.
As the Trump administration continues to investigate the allegations against James, the case serves as a reminder of the contentious relationship between the former president and the New York Attorney General. Both Debbas and legal scholar Jonathan Turley have highlighted the irony of James now facing similar allegations to those she pursued against Trump. The outcome of this latest legal battle remains uncertain, but it has once again thrust the ongoing feud between James and Trump into the spotlight.
