The FBI is investigating New York Attorney General Letitia James over potential fraud related to her real estate transactions, FBI Director Kash Patel confirmed in an interview on Fox News Sunday.
The investigation is focusing on whether James committed fraud on a mortgage application, with a grand jury in the Eastern District of Virginia reportedly issuing subpoenas related to the case, a source familiar with the matter revealed.
James, who won a civil case last year against the Trump Organization and former President Donald Trump over allegations of fraudulent business practices, is now facing a possible criminal prosecution herself. She is the first public official involved in the investigation of Trump to face such scrutiny.
Patel did not disclose specific details about the probe, but he noted that it is being handled by experts in the field who report directly to headquarters.
The Justice Department has made investigations into those who have targeted Trump a priority. Attorney General Pam Bondi set up a Weaponization Working Group on her first day in office to examine instances of “politicized justice,” including cases involving figures like James.
James’ attorney, Abbe Lowell, responded to the investigation by calling the allegations “baseless and long-discredited” and suggested that it was political retaliation as promised by Trump. He also confirmed that James intends to use both private and state funds to cover her legal expenses.
Earlier this month, James’ legal team dismissed allegations of mortgage fraud as “threadbare.” These allegations stem from a referral to the Justice Department by Federal Housing Finance Authority Director Bill Pulte, who claimed that James made false statements on property records, including a loan application that misrepresented her Virginia property as her primary residence.
Lowell acknowledged that minor mistakes had been made in some documents but argued that these were insignificant in the broader context. He also contended that Pulte had selectively cited errors while ignoring accurate details in the records.
James and Trump have a long history of legal and political conflict. In 2022, she sued Trump and his family business for fraud, which led to a penalty exceeding $450 million, a ruling that Trump has appealed. James also filed civil fraud charges against Trump, his sons, and his business. A judge later found Trump liable for fraud, though Trump has also appealed that decision.
Trump had tried to have the lawsuit dismissed, claiming James was politically motivated in her pursuit. Additionally, Trump revoked James’ security clearance in March.
