Adam Schiff Faces Potential Huge Fines in Mortgage Fraud Investigation

California Sen. Adam Schiff (D) is facing potential fines and penalties in a mortgage fraud investigation, financial crime experts say.

The senator has been referred to the Justice Department for prosecution over allegations of falsely claiming primary residence status in two states to gain financial benefits.

Schiff is accused of submitting falsified bank and property documents that designated a home he owns with his wife in Potomac, Maryland, as their primary residence.

This allegedly allowed them to lower mortgage payments from 2013 to 2019.

Despite being a senator from California, Schiff reportedly also claimed a property in Burbank, California, as his primary residence during the same period.

This designation secured a tax exemption that saved him around $7,000, per the Conservative Brief.

Mortgage lenders typically offer lower rates for primary residences, which are seen as less risky compared to secondary homes or investment properties. This key point underlies the allegations against Schiff.

The case marks a significant reversal for Schiff, a vocal critic of former President Donald Trump, who led calls to prosecute Trump over business fraud allegations.

Last year, Schiff accused Republicans of abandoning principles to support Trump. Trump was later convicted in New York on multiple counts of business fraud, charges some legal experts have called politically motivated.

Schiff denies all allegations, asserting that lenders were aware of his year-round use of both properties and that neither was a vacation home.

He has also dismissed Trump’s accusations against him as baseless and politically motivated attacks on the rule of law.

Mortgage fraud cases like this are usually handled by the Justice Department and rarely proceed to trial. Defense experts say these cases often resolve through plea agreements because the financial evidence is typically clear.

If charges are filed against Schiff, the case will likely focus on whether he personally signed the documents and whether he actually lived full-time in the Maryland home.

Legal experts say if those facts are undisputed, a trial is unlikely, and the resolution would probably include fines, restitution, or other sanctions.

Former President Trump has publicly called Schiff a “scam artist,” alleging that Schiff obtained a mortgage for the Maryland home in 2009 but only designated it as a second home in 2020 to secure better loan terms.

Trump claimed that Fannie Mae’s Financial Crimes Division uncovered this suspected wrongdoing and called for Schiff to be brought to justice.

Neither the Justice Department nor related agencies have confirmed whether charges will be filed in the case.

The investigation is ongoing and continues to draw national attention amid debates over ethics and accountability for public officials.

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