Senior fraud investigators at Fannie Mae concluded there was no clear evidence that New York Attorney General Letitia James committed mortgage fraud, according to newly disclosed internal communications. The revelation, made public in a legal filing this week, adds weight to James’ defense team’s argument that the case against her is flawed and politically motivated.
Details of the Filing
- Internal emails between Fannie Mae’s Director of Mortgage Fraud Sean Soward and company executives indicated investigators doubted the strength of the allegations.
- The filing was submitted by James’ legal team as part of a motion to dismiss charges, citing “outrageous government conduct.”
- Prosecutors had accused James of misrepresenting a Virginia property as a second home rather than a rental to secure a lower mortgage rate.
Political Context
James, a prominent Democrat and vocal critic of President Donald Trump, previously led a civil fraud case against him. Her attorneys argue the criminal charges stem from political retaliation, pointing to the role of Federal Housing Finance Agency Director Bill Pulte, a Trump ally, in referring the case to the Justice Department.
Broader Implications
The disclosure raises questions about the integrity of the investigation and whether exculpatory evidence was overlooked. Defense lawyers contend that the case reflects misuse of federal agencies and improper conduct by senior officials.
Outlook
James is seeking dismissal of the indictment with prejudice, which would prevent prosecutors from re‑filing charges. The court’s decision could have significant implications not only for her political future but also for the credibility of federal oversight in mortgage fraud investigations.
Sources: AOL CBS News POLITICO, ws US News.
NY AG Tish James and Supreme Court Justice Rachel Freier Picture by Joecento
