Attorпey Geпeral Pam Boпdi Has Aυthorized a Special Prosecυtor to Iпvestigate Mortgage Fraυd Allegatioпs Agaiпst Seп. Adam Schiff aпd NY AG Letitia James

In a move that has heightened political and legal tensions, Attorney General Pam Bondi has authorized the use of a special prosecutor to investigate serious mortgage fraud allegations involving two prominent Democratic figures: Senator Adam Schiff (D-Calif.) and New York Attorney General Letitia James.

The Federal Housing Finance Agency (FHFA) has referred NY Attorney General Letitia James to the Department of Justice over alleged mortgage fraud. Specific claims include:

Misrepresenting a Virginia property as her primary residence while she was required to reside in New York.
Falsifying property details such as overstating unit counts for loan applications.

Misreporting personal relationships on official documents (e.g., listing her father as her “husband”) The Times of India+15Newsweek+15Wall Street Journal+15Newsweek+11WNYT.com NewsChannel 13+11Wikipedia+11.

In response, Bondi has assigned a special prosecutor, Ed Martin, to oversee the investigation. James has strongly denied the claims, calling them “baseless” and politically motivated AP News+3The Washington Post+3Wikipedia+3.

Simultaneously, FHFA has sent a criminal referral regarding Senator Adam Schiff, alleging that he claimed dual primary residences in Maryland and California-to gain favorable mortgage rates while benefiting from California tax exemptions.

These allegations span multiple refinance applications between 2009 and 2019 and include possible violations such as wire fraud, bank fraud, and false statements to lenders Wikipedia+15Wall Street Journal+15lawandcrime.com+15Newsweek+1.

With the naming of Ed Martin-a former interim U.S. Attorney and head of the Justice Department’s Weaponization Working Group-as special prosecutor, both cases will proceed to grand juries in relevant jurisdictions (Virginia, Maryland, and potentially others) Wall Street Journal+2AP News+2.

This elevated oversight reflects the sensitive and high-profile nature of the subjects, and underscores the seriousness with which the DOJ is treating the allegations.

Both James and Schiff have condemned the investigations, characterizing them as political retaliation. James, in particular, has suggested the probe is payback for her significant legal campaigns against former President Trump-including a $355 million civil fraud judgment Wikipedia+15reuters.com+15The Daily Beast+15.

Legal experts caution, however, that such claims may become moot if sufficient documentary evidence supports the fraud allegations. The inquiry marks an unusual escalation-targeting political figures and attorneys who have previously fought legal battles with the current administration.