The Justice Department’s mortgage fraud investigation reached a dramatic turn Friday as Special Attorney Ed Martin personally inspected a Clinton Hill brownstone owned by New York Attorney General Letitia James, now at the center of allegations involving falsified mortgage records and federal housing misrepresentations.
The property, a five-unit dwelling at 296 Lafayette Avenue, is alleged to have been misclassified as a four-unit building on loan documents, building permits, and government filings, reported The New York Post. That distinction is no small technicality: under Fannie Mae and Freddie Mac guidelines, four-unit properties qualify for more favorable terms—lower down payments, reduced interest rates, and streamlined access to government-backed credit. Prosecutors contend James knowingly exploited that rule, even while serving as the state’s top law enforcement officer.
The probe, overseen by Attorney General Pam Bondi, follows an April criminal referral from Federal Housing Finance Agency Director Bill Pulte, who accused James of “deliberate falsification” in both New York and Virginia property transactions. Pulte maintains James improperly claimed a Norfolk, Virginia, residence purchased in 2023 as her “primary home” while simultaneously listing the Brooklyn brownstone as her secondary address. Further filings suggest James and her father signed documents as “husband and wife” to meet lending requirements, an allegation that—if proven—would constitute mortgage fraud.
On Friday, Martin was seen examining the building’s entrances, which display a main doorbell alongside four additional labeled bells—“1 Floor,” “2 Floor,” “3A,” and “3B”—a physical detail consistent with the five-unit classification at odds with James’ filings. When confronted by a visibly agitated neighbor demanding answers, Martin offered only a polite deflection. “I’m just happy to be on a block looking at houses,” he remarked. “It’s an important house.”
I believe Letitia James committed mortgage fraud. pic.twitter.com/BeVyrK6g7X
— Pulte (@pulte) August 9, 2025
James has been accused of corruption over the past few years as her obsession with Donald Trump grew. In 2018, she fixated her campaign for attorney general on arresting Donald Trump by any means necessary. Her accusations against the then-GOP frontrunner were so outrageous that even one of Trump’s enemies, Andrew Cuomo, said they reeked of politicization.
A grand jury is currently looking into corruption charges against the New York attorney general. The investigation stems from allegations tied to her civil fraud case against President Donald Trump and is reportedly centered in Albany, focusing on potential ‘deprivation of rights’ arising from James’s legal actions.
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Way way too many obvious document manipulations to be anything but blatant fraud and criminal activity. She will be found guilty of all charges against her. Then as an officer of the court she SHOULD BE DISBARRED. Then as the Attorney General of NY State I am pretty sure her primary residence MUST be in NY State. At this point she claims multiple primary residences. It is time for her to be held accountable for multiple crimes. I really want to see her in hand cuffs wearing that bright orange jumpsuit. She deserves nothing less than a very long time in prison plus a very hefty fine.
Hooray Prosecute all & seize assets
Corruption begets corruption. Her fanatical, farcical pursuit of The Donald, while she pulls these corrupt stunts.