WASHINGTON, D.C. – New York Attorney General Letitia James is under formal investigation by the FBI and the U.S. Attorney’s Office in Albany for alleged mortgage fraud related to her personal real estate transactions. The inquiry focuses on claims that James misrepresented occupancy details to obtain favorable loan terms on properties in Virginia and Brooklyn. One notable issue involves a 2023 mortgage application for a Virginia home, where James reportedly declared it as her primary residence, potentially conflicting with state requirements for elected officials to reside in New York.
In response to the investigation, James has retained attorney Abbe Lowell for her defense. A spokesperson for her office confirmed plans to utilize both private legal defense funds and state resources to cover legal expenses.
A provision in the recently passed New York State budget allocates $10 million for “services and expenses relating to costs of outside legal services.” While the legislation does not mention James by name, its broad language could encompass legal fees for state officials facing federal investigations, including James.
This budget allocation has drawn criticism from Republican lawmakers, including Rep. Elise Stefanik, who labeled it a “disgraceful slush fund” and called for its removal.
The investigation into James and the associated budget provision have sparked a political debate in New York, with discussions centered on the appropriateness of using taxpayer funds for legal defenses of state officials under federal scrutiny.
“Kathy Hochul and Albany Democrats have reached a new low in their corrupt, far-left agenda by sneaking language into the state budget that misuses hardworking New Yorkers’ tax dollars to bankroll Letitia James’ legal defense against serious allegations of mortgage fraud. This disgraceful slush fund epitomizes the cesspool of corruption in Albany, where Democrat elites prioritize protecting their own over the needs of New York families.
Letitia James, who illegally weaponized her office to pursue politically motivated witch hunts, now expects taxpayers to foot the bill for her alleged misconduct. Meanwhile, New Yorkers are crushed by skyrocketing crime, a mass exodus from our state, and a cost-of-living crisis fueled by Hochul’s failed policies. Instead of addressing these urgent issues, Albany Democrats are doubling down on shielding their corrupt allies.
This shameful abuse of public funds demands accountability. I call on Governor Hochul to immediately remove this provision from the budget and for an independent investigation into James’ alleged fraud. New Yorkers deserve transparency, not taxpayer-funded cover-ups. As a proud representative of Upstate New York, I will continue to fight against the corrupt one-party rule in Albany and stand up for the hardworking families who are fed up with this blatant betrayal of public trust.”
– House Republican Leadership Chair Elise Stefanik
