Federal Probe Opens Into NY Attorney General Letitia James Over Alleged Mortgage Fraud Amid Town Hall Heckling

New York Attorney General Letitia James faced a heckler at a Westchester community hearing shortly after the Trump administration’s Justice Department confirmed a federal criminal investigation into her for alleged mortgage fraud. The investigation, prompted by a complaint from the Federal Housing Finance Agency, accuses James of falsifying property details to secure favorable loan terms, including misrepresenting the number of units in a Brooklyn property and falsely claiming a Virginia home as her principal residence. James dismissed the allegations as baseless and politically motivated, maintaining composure during the event and thanking the heckler for attending. The inquiry could lead to charges such as wire fraud, bank fraud, and making false statements to financial institutions, with New York taxpayers potentially liable for her legal defense under a new state budget provision. Several Democratic attorneys general joined James at the hearing, demonstrating solidarity amid the controversy. The incident underscores ongoing political tensions, particularly given James's previous legal actions against former President Trump.