New York Attorney General Letitia James is back in the political hot seat, this time as the target of a federal mortgage fraud probe led by special counsel Ed Martin. The Trump-appointed investigator, tasked with examining alleged government weaponization and property fraud involving both James and Senator Adam Schiff, sent James a blunt letter urging her to resign “as an act of good faith.”
Martin, who visited James’ Brooklyn brownstone at the center of the probe, argued that stepping down would spare New Yorkers and the nation from a protracted scandal. “Her resignation from office would give the people of New York and America more peace than proceeding,” Martin wrote. His move followed the opening of grand jury proceedings in Virginia and Maryland that are weighing potential criminal indictments against both James and Schiff.
James, however, has no intention of bowing out. Her high-profile attorney, Abbe Lowell — whose legal services are being covered by New York taxpayers — fired back, accusing Martin of violating Justice Department ethics rules and staging a political stunt outside her home. Lowell, who recently represented Hunter Biden, dismissed the request as “political revenge” and vowed that James would not step down.
At issue are allegations that James misrepresented her Brooklyn property, listed as a five-unit dwelling, as a four-unit building on mortgage and government filings. By doing so, prosecutors allege, she gained access to more favorable loans through Fannie Mae and Freddie Mac. The probe also covers a second property in Virginia where similar irregularities are alleged.
James’ critics argue that this scandal is the height of hypocrisy given her relentless pursuit of President Donald Trump. She famously led the politically charged civil fraud case that claimed Trump’s Mar-a-Lago estate was worth as little as $18 million — a ruling that real estate experts widely mocked, pointing out the property is worth well over $400 million. Trump’s legal team continues to appeal that verdict.
Now, with Martin promising his investigation will intensify, James faces mounting pressure as both her credibility and her career hang in the balance.
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