Letitia James referred for criminal prosecution for 2nd time over insurance fraud

Federal Housing Finance Agency director William Pulte has referred New York Attorney General Letitia James to the DOJ for a second time, citing allegations that she falsified information related to a homeowner’s insurance application.

On Wednesday, Pulte urged US attorneys in Florida and Illinois to “authenticate and investigate” claims, according to a report by Just the News. Pulte, whose agency oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank, pointed to allegations that James misrepresented details to her home insurer.

The referral follows an earlier letter sent last April to Attorney General Pam Bondi and Deputy Todd Blanche for claims that James “falsified bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms.” James allegedly classified a Norfolk, Virginia, home as her primary residence despite being required to maintain residency in New York. 

Pulte’s letter to the Southern District of Florida cites an application for home insurance submitted to Universal Property Insurance, in which James allegedly indicated the Virginia property would be unoccupied for five months of the year. However, testimony by James’ niece revealed that she had lived in the home for years while wanted in North Carolina for not completing her probation.

“[It] appears Ms. James made false representations that her property would be unoccupied five months out of the year,” Pulte wrote. “According to the post, this was false. The house was, in fact, occupied year-round by her niece.”

A letter to the Northern District of Illinois by Pulte said that one court document shows James claimed to Allstate that her Virginia home would be occupied by an individual, with reporting showing her niece lived there with multiple children.

“[It] appears Ms. James made representations that the house would be occupied by a single adult, with no children. Instead, according to the post, she knew the house was actually occupied by four people - three children and her niece,” Pulte said. “As such, it appears Ms. James may have defrauded the Illinois-based insurance company. We kindly request you authenticate and investigate this matter, if you deem appropriate.”

A federal grand jury in Virginia previously brought charges against James related to alleged false statements and bank fraud. Those charges were later dismissed after a judge ruled the prosecutor was not lawfully appointed, and the grand jury declined to issue a new indictment.

James is known for having previously pursued legal action against Trump under the Biden administration, including a 2022 civil fraud case involving his business that resulted in a $464 million judgment.