New York Attorney General Letitia James is now at the center of a federal criminal investigation. The FBI, together with the U.S. Attorney’s Office in Albany, has initiated a probe into allegations that James engaged in fraudulent activities related to her real estate dealings. This development, confirmed by a source to the New York Post, emerges after Federal Housing Finance Agency Director William Pulte referred the case to the Department of Justice last month.
The allegations concern two properties: one in Virginia, which James reportedly claimed would be her principal residence despite her role as New York's chief legal officer, and her Brooklyn brownstone, where the number of units was purportedly misrepresented. Pulte's referral suggests these actions could lead to charges including wire fraud, bank fraud, mail fraud, and false statements to financial institutions.
John Sarcone III, the U.S. Attorney handling the case, was appointed during the Trump administration and is viewed as having alignment with the former president. His office, as well as the FBI, refrained from commenting when reached out to on Thursday. James' office also declined to provide a statement on the ongoing investigation. However, James has previously labeled the accusations as "baseless," implying the probe is politically motivated, particularly in light of her successful civil lawsuit against Donald Trump and the Trump Organization, which resulted in a significant financial judgment.
To navigate the legal challenges ahead, James has enlisted the expertise of Abbe David Lowell, a prominent attorney known for representing Hunter Biden in a federal investigation. Lowell's services have been contracted by the Attorney General's office rather than James personally, sparking debate over whether public funds should be used for her defense. The Times Union has reported that Albany Democrats are poised to authorize a $10 million legal defense fund for state officials, which can be accessed even for matters not directly related to their official duties.
Meanwhile, America First Legal, a watchdog group established by former Trump administration officials, has submitted a misconduct complaint against James to New York’s Committee on Professional Standards. The complaint alleges that if James has indeed committed fraud for personal financial gain, she has breached her professional conduct as an attorney.
The case against James represents a striking turn of events for a figure who has been vocal about accountability and the rule of law, famously stating that "no one is above the law." Critics now invoke her own words, suggesting that it is time for James to be subject to the same legal scrutiny she has advocated for others.
