Justice Department Opens Investigation Into Letitia James

Topline The Department of Justice opened an investigation into New York Attorney General Letitia James, who led the state’s case against President Donald Trump in 2022 for fraud and falsifying business records, multiple outlets reported Thursday. New York Attorney General Letitia James speaks during a news conference outside Manhattan federal ... More court in New York on Friday, Feb. 14, 2025. Key Facts The criminal investigation by the Justice Department focuses on James’ real estate transactions, The Washington Post reported, citing a person familiar with the investigation. The investigation was spurred after the director of the Federal Housing Finance Agency, William Pulte, told Attorney General Pam Bondi that James had “falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms” multiple times, CBS News reported. After she led the state of New York’s suit against Trump—in which he was found liable for fraud and ordered to pay hundreds of millions—Trump has regularly called for James to be investigated. In a statement to Forbes, James’ lawyer Abbe Lowell said the allegations against her are “baseless and long-discredited,” and said: “This appears to be the political retribution President Trump threatened to exact that AG Bondi assured the Senate would not occur on her watch. If prosecutors are genuinely interested in the truth, we are prepared to meet false claims with facts.” Forbes has reached out to the Justice Department for confirmation. Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here . Crucial Quote As recently as April 14, Trump called for James to resign. On Truth Social in a post that linked to a Red Voice Media article about the allegations against her, he wrote: “Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY. Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office.” Key Background James filed a civil fraud lawsuit against Trump in 2022 that alleged he, the Trump Organization and his sons Donald Trump Jr. and Eric Trump committed “repeated and persistent” acts of fraud. James alleged in court that Trump inflated his net worth by $1.9 billion to $3.6 billion per year between 2011 and 2021. In September 2023, a judge found Trump and members of his family had committed fraud by overstating the value of their assets, and in a subsequent trial the judge said there was “overwhelming evidence” showing the fraud was intentional and they knowingly submitted false financial statements. Trump was ordered to pay about $354.9 million, and his sons were each ordered to pay approximately $4 million. Trump and the other defendants denied wrongdoing in the case, saying they based their valuations on Trump’s expertise and any issues with statements were the fault of accountants. Trump is appealing the ruling, and CBS News reported that as of late April the interest on the money he was ordered to pay has brought the total to more than $500 million. Tangent Though the investigation has not been confirmed by the Justice Department to Forbes, Rep. Elise Stefanik, R-N.Y., an outspoken critic of James, released a statement commending the department for opening the investigation. “Nobody is above the law. These serious allegations—falsifying records to secure favorable loan terms on properties in Virginia and New York—threaten public trust in our institutions,” Stefanik said in the statement. “The hypocrisy is staggering: Tish James allegedly committed the same crime that she falsely and illegally prosecuted President Donald Trump for.” Forbes Valuation Forbes estimates Trump has a net worth of about $5.1 billion, making him the 722nd-wealthiest person in the world. Further Reading New York Attorney General Letitia James investigated by Justice Dept. (Washington Post) Trump’s Justice Department launches criminal probe into Letitia James (CBS News) Source: https://www.forbes.com/sites/mollybohannon/2025/05/08/justice-department-opens-investigation-into-ny-attorney-general-letitia-james/