Senator Adam Schiff, long known as one of the most vocal anti-Trump lawmakers in Washington, now finds himself entangled in a criminal investigation of his own making.
As of July 2025, Schiff is under federal investigation for alleged mortgage fraud, stemming from what whistleblowers and investigators say was a years-long scheme to manipulate residency records in order to secure favorable loan terms from federally regulated lenders.
The scandal erupted when the Federal Housing Finance Agency (FHFA) submitted a formal criminal referral to the Department of Justice. According to internal FHFA documents reviewed by Fox News, Schiff is accused of “repeatedly misrepresenting his primary residence” in mortgage applications spanning nearly two decades. These alleged misrepresentations, investigators say, were designed to secure lower interest rates and reduced tax obligations.
The New York Post reported that Schiff alternated between claiming a luxury home in Potomac, Maryland, and a condominium in Burbank, California, as his “primary residence” to secure loans on both properties. This violated mortgage terms, which require borrowers to designate and occupy a single primary residence. Fraudulent claims on federally backed mortgages constitute a felony under U.S. law.
Schiff has vehemently denied any wrongdoing. “This is a politically motivated attack meant to distract from Donald Trump’s criminal conduct,” he said in a brief July 15 press conference. Yet federal investigators aren’t backing down. The U.S. Attorney’s Office for the District of Maryland confirmed in late July that a criminal inquiry is “active and ongoing.”
Former President Donald Trump wasted no time responding. “Adam Schiff is a fraud and a liar, and now he’s being exposed,” Trump said during a speech in Michigan. “He spent years fabricating hoaxes about me, and now it’s his turn to face the music.”
According to legal experts cited by Reuters, mortgage fraud cases are often prosecuted when there is clear evidence of willful misrepresentation. In Schiff’s case, investigators allege that he signed mortgage documents in both states under oath—stating each time that he lived primarily at the listed address.
In one document dated May 2011, Schiff declared his California condo as his primary residence. But just four months later, in a separate loan application, he listed his Maryland property for the same purpose. “It’s textbook fraud,” said retired mortgage fraud investigator Chris Mancuso. “You can’t live in two places at once—especially not when it benefits you financially.”
The fallout is already spreading through the political world. Schiff, once hailed as a rising star in the Democratic Party, has seen support among moderates wane. A recent poll by Rasmussen showed that only 32 percent of respondents viewed Schiff as trustworthy, down from 48 percent six months earlier.
Republicans in Congress are seizing the moment. House Judiciary Committee Chairman Jim Jordan has vowed to launch a parallel congressional investigation into Schiff’s finances. “The American people have a right to know if this man—who lied to them for years—is also a criminal,” Jordan said in a press release.
Meanwhile, conservative pundits are pointing to the hypocrisy of Schiff’s downfall. “This is the same guy who claimed he had evidence of Russian collusion. Now we find out he’s been lying about his own home address to cheat the system,” said Sean Hannity on his prime-time Fox News show.
The charges carry serious consequences. If convicted, Schiff could face up to 30 years in federal prison and millions in fines. Legal analysts believe the investigation could also ensnare mortgage brokers and banks that may have knowingly facilitated the fraud.
The FHFA’s referral reportedly includes internal emails, loan application forms, and sworn statements, all of which could serve as key evidence. “We have a very strong paper trail,” said one federal source quoted by Fox News. “This isn’t some witch hunt—it’s about cold hard facts.”
The Biden-era Justice Department, already under fire for political bias, now finds itself in a difficult position. Any move to suppress or delay the investigation could ignite a firestorm among congressional Republicans. “If DOJ tries to sweep this under the rug, we’ll hold hearings every week until the truth comes out,” said Rep. Elise Stefanik (R-NY).
The scandal also has implications for Schiff’s re-election bid. His opponents have begun running attack ads in California focusing on the mortgage fraud probe, calling him “unfit to serve” and “corrupt to the core.” Political analysts suggest this could spell the end of his Senate ambitions.
In response, Schiff has ramped up his fundraising and media appearances, trying to cast himself as a victim of a political hit job. But the evidence continues to mount. “It doesn’t matter who you are—when you lie on a mortgage form, that’s fraud,” said legal scholar Hans von Spakovsky on Newsmax.
Adding fuel to the fire, a whistleblower formerly employed by Schiff’s campaign came forward with documents allegedly showing that Schiff directed staff to coordinate his D.C. and California addresses based on political convenience—not legal residence.
Former HUD Secretary Ben Carson, speaking at a recent conservative summit, warned that Schiff’s case is part of a broader pattern. “Elites like Adam Schiff think the law doesn’t apply to them. But America is waking up. We’re done with two-tiered justice.”
Calls for Schiff to resign are growing louder. As of August 2025, over 50 Republican lawmakers have signed a joint letter demanding his resignation pending the outcome of the investigation.
Even some Democrats are growing uneasy. One anonymous Senate staffer told Politico, “If these charges are true, it’s indefensible. You can’t fight for housing equity while gaming the system yourself.”
