Special Counsel Visits Letitia James’ Property Amid Fraud Investigation

Special Counsel Ed Martin visited New York Attorney General Letitia James’ Brooklyn property Friday as part of a growing investigation into alleged mortgage fraud, according to reports.

Martin, appointed last week by Attorney General Pam Bondi, is leading inquiries into potential criminal activity by James and California Sen. Adam Schiff (D-CA).

Grand juries in Virginia and Maryland are currently weighing whether to pursue charges against both Democrats over accusations they misrepresented their property holdings to secure favorable loans.

James’ Brooklyn property at 296 Lafayette Avenue, a multi-family dwelling listed as having five units, has drawn scrutiny for being reported as only four units on mortgage applications, building permits, and government assistance filings.

Prosecutors allege this misrepresentation allowed James to access loans with lower down payments and interest rates available only to four-unit properties, per Trending Politics.

Footage obtained by the New York Post shows Martin inspecting the brownstone in a beige trench coat, walking past weathered but visible labels reading “1 Floor,” “2 Floor,” “3A,” and “3B.”

During the inspection, a neighbor confronted Martin. “Tell me why you’re here,” the woman demanded. “We know who lives here . . . You’re not here about the houses. You’re here because of who lives here. It’s my neighborhood. It’s my block. I have a right to know what you guys are doing.”

Martin replied calmly, “I’m just happy to be on a block looking at houses . . . I’m just looking at houses, interesting houses. It’s an important house.”

The neighbor shot back, “It’s not. It’s just like every other tract house on this block that was built by developers.” Martin responded, “They’re beautiful, beautiful neighborhood,” before walking away.

The investigation into James’ real estate holdings began in April when Federal Housing Finance Agency Director Bill Pulte submitted a criminal referral to the Justice Department.

Pulte alleged that James may have “falsified bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms” by listing her Norfolk, Virginia, property as her primary residence while serving as New York Attorney General.

The Brooklyn property was listed as her secondary residence.

“Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA, property as her primary home,” Pulte wrote. He added that James’ misrepresentations may have continued during her 2023 purchase of the Norfolk property to secure lower interest rates and better loan terms.

The letter further alleges James “consistently misrepresented” her Brooklyn property as only four units on building permit applications and mortgage documents, even listing her father as her spouse on some paperwork to meet lending rules.

Martin is simultaneously overseeing the investigation into Senator Schiff, who faces similar allegations involving the misrepresentation of a Maryland property during a refinancing process. Both Schiff and James have denied wrongdoing.

“Bill Pulte and his FHFA team got this started with his criminal referral,” Martin said last week. “And as Tish James and Adam Schiff always say: ‘Nobody is above the law.’”

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