Letitia James Mortgage Fraud Probe Is Moving Ahead at DOJ (1)

The US Justice Department is pushing ahead with its investigation of New York Attorney General Letitia James over mortgage fraud allegations after President Donald Trump demanded the case move forward, according to people familiar with the matter.

The case is still being pursued through the US attorney’s office for the Eastern District of Virginia in an effort led by senior Justice Department official Ed Martin, according to the people, who asked not to be named speaking about an ongoing investigation. One of Trump’s aides, Lindsey Halligan, took over the office on Monday.

New York’s attorney general Letitia James

Photographer: Jeenah Moon/Bloomberg

The Justice Department’s probe into James stemmed from claims by Federal Housing Finance Agency Director Bill Pulte that she may have committed mortgage fraud based on the residence status she listed on applications. James has denied committing fraud and her lawyer didn’t immediately respond to a message seeking comment.

The push by some Trump officials to bring charges against James had stalled. Erik Siebert, who had been leading the Virginia US attorney’s office that Halligan is now in charge of, resigned his post last week amid pressure to bring charges against James. Siebert had determined there wasn’t enough evidence to support charges, Bloomberg News had reported.

Read More: US Attorney on James Mortgage Probe Resigning Under Pressure

Following Siebert’s resignation, Trump issued an urgent message to Bondi over the weekend in a social media post, that’s since been deleted, demanding action against James.

“We can’t delay any longer, it’s killing our reputation and credibility,” Trump wrote in a Truth Social post. “JUSTICE MUST BE SERVED, NOW!!!”

Martin, who Attorney General Pam Bondi appointed as a special attorney to investigate mortgage allegations, met with Deputy Attorney General Todd Blanche on Monday and got the green light to continue the investigation into James, one of the people said.

In a statement on Tuesday, Bondi’s office said the attorney general would continue to support Martin’s efforts “to ensure accountability on behalf of the American people.”

“We do not comment on current or potential cases however it should be noted that this is continuing — not reviving,” Bondi’s office said in the statement. “Generally this Department of Justice will vigorously pursue justice against anyone who commits fraud against the American taxpayer. We treat every referral with the utmost seriousness.”

Halligan’s office declined to comment.

Halligan was sworn in on Monday as interim US attorney in Virginia. She represented Trump against charges of mishandling classified documents after his first term. She previously was an insurance lawyer in Florida and graduated from the University of Miami School of Law in 2013.

(Updates with additional comment from Bondi’s office in eighth paragraph. An earlier version corrected which DOJ office provided comment.)

--With assistance from Erik Larson.

To contact the reporter on this story:
Chris Strohm in Washington at cstrohm1@bloomberg.net

To contact the editors responsible for this story:
Sara Forden at sforden@bloomberg.net

Ben Bain

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