Guest post by Joel Gilbert
President Trump declared in the Oval Office on Tuesday that New York Attorney General Letitia James was “a total crook” and said the Justice Department would “do what’s right” after receiving a criminal referral accusing her of mortgage fraud.
He added, “she’s a disaster for New York. She’s a horrible, horrible human being”.
New York Attorney General Letitia James has for years cultivated an image as a champion of ethics, transparency, and the rule of law.
However, my review of public records and court filings, which I have documented in The Gateway Pundit series “The Letitia Files”, reveals a range of troubling issues that could pose serious legal and ethical consequences for New York’s top law enforcement official.
These issues span mortgage fraud, federal loan misrepresentation, campaign finance violations, and improper coordination with a nonprofit entity. Here is a chronological summary:
1. Mortgage Fraud Through Misrepresentation of Familial Relationship
One of the most striking revelations emerges from a 1983 real estate transaction in which Letitia James and her father, Robert James, obtained a mortgage as “husband and wife.”
The loan application to Kadilac Funding Corporation listed them as a married couple, despite the fact that Letitia is his daughter. Such a misrepresentation of a relationship to qualify for a loan could constitute mortgage fraud under both federal and New York State law.
Under 18 U.S.C. § 1014, knowingly making false statements to influence a financial institution carries a penalty of up to 30 years in prison and a $1 million fine.
New York law also prohibits filing false written statements with intent to defraud under Penal Law § 175.35. If the misrepresentation were found to be intentional, the consequences could be dire: criminal prosecution, disbarment, and even removal from public office.
2. Undisclosed Virginia Foreclosure Purchase
In December 2008, James’s name appeared on the “Final Foreclosure Accounting” as a purchaser of a single-family home at 21 Peters Street in Martinsville, Virginia, alongside Johnsie and Philip Finney, her relatives.
Notably, her first name was misspelled as “Letitua,” raising questions about whether James, a New York City Council member, was trying to hide her identity from public searches. The Finneys had previously owned the property before being foreclosed on by Wells Fargo Bank.
Despite her involvement as a buyer, James’s name does not appear on the subsequent “Substitute Trustee’s Deed” a few weeks later in January 2009, which lists only the Finneys as the new owners.
There is no recorded transaction indicating James sold her interest to the Finneys, suggesting potential violations of Virginia property laws and raising concerns about New York state campaign asset disclosures and possible fraud.
3. HAMP Loan Fraud Through Misrepresentations of Property Details and Income
In 2011, James successfully disposed of her 10% interest private bank mortgage rate on her Brooklyn apartment building by refinancing with a federal Home Affordable Modification Program (HAMP) loan, and receiving a favorable 2.7% interest rate on the back of the American taxpayer.
However, documents indicate that James qualified for the loan only by falsely stating her apartment building had only four rental units, when the Certificate of Occupancy actually showed five.
My visit to James’s apartment building confirmed five apartment units. HAMP explicitly excludes properties with five or more units.
James also claimed a highly questionable financial hardship to obtain the loan, despite an income of around $14,000 per month.
These discrepancies could trigger legal liability for James under the False Claims Act, which allows the federal government to impose treble damages and fines for false statements made in order to obtain government funds.
Additionally, such misrepresentations could violate NY Penal Law § 176.05 concerning insurance and mortgage fraud.
Additionally, ethical and reputational implications remain potent – especially for an official whose public persona is built on holding others accountable under her often-stated mantra “No one is above the law”.
4. Illegal Campaign Coordination with a Nonprofit
During her 2013 campaign for New York City Public Advocate, James paid the 501(c)(4) nonprofit New York Communities for Change (NYCC) for services including “canvassing,” “campaign workers,” and “staff/rent/phone.”
This raises serious red flags. IRS rules strictly limit the ability of 501(c)(4) organizations to engage in partisan political activity, and coordination with a campaign may constitute an illegal in-kind contribution under both federal and New York election law.
These allegations mirror the kind of nonprofit abuses James herself later warned against.
This coordination could result in IRS revocation of the nonprofit’s tax-exempt status, campaign finance penalties, and a referral for criminal investigation. Moreover, the hypocrisy could undermine James’ credibility in enforcing nonprofit laws statewide.
5. Documented Campaign Finance Violations
Letitia James’s campaigns for public office have repeatedly run afoul of the New York City Campaign Finance Board.
Audits of her 2013 and 2017 campaigns revealed improper contributions, unreported in-kind support, and expenditures not directly related to campaign activity. In both cases, she was required to repay taxpayer-provided matching funds and accept financial penalties.
While these offenses were administrative rather than criminal, the pattern raises broader concerns about compliance culture within her political operation.
For an elected official tasked with enforcing campaign finance and public integrity laws, repeated violations – no matter how procedural – raise serious questions about selective enforcement and political double standards.
6. Misrepresentation of Her Primary Residence in Norfolk, Virginia
As detailed in Sam Antar’s White Collar Fraud website, in August 2023, Letitia James co-signed for a mortgage for a property located at 604 Sterling Street in Norfolk, Virginia, alongside her niece, Shamice Thompson-Hairston.
As part of this transaction, James executed a notarized Power of Attorney (POA) on August 17, 2023, which included a sworn declaration stating, “I hereby declare that I intend to occupy this property as my principal residence.”
This declaration was instrumental in securing favorable lower mortgage rates typically reserved for primary residences.
William Pulte, Director of the Federal Housing Finance Agency, cited this declaration in an April 14, 2025 letter to U.S. Attorney General Pam Bondi, alleging that James may have falsified bank documents and property records to acquire government-backed assistance and loans with more favorable terms.
Pulte emphasized that primary residence mortgages receive lower interest rates and more favorable loan terms compared to secondary residences. James’s HAMP loan was also cited by Pulte for investigation.
Conclusion
Letitia James has risen through New York’s political ranks advertising herself as a watchdog for justice. But her own records show a pattern of legal and ethical misconduct – from her mortgage practices to campaign irregularities to misuse of a nonprofit. I even documented that Letitia James could be a “slumlord”.
If the laws Letitia James enforces in New York state are to have legitimacy, the same scrutiny applied to others must apply to her. A failure to hold James accountable for her issues can only erode public trust in the office she holds. New York state simply cannot have an attorney general who behaves as though she is “above the law”.
Joel Gilbert, is a Los Angeles-based film producer, and president of Highway 61 Entertainment. He is on Twitter: @JoelSGilbert.
The post The Legal Risks Facing Letitia James: Mortgage Fraud, Campaign Violations, Nonprofit Misuse, and There’s More appeared first on The Gateway Pundit.