Investigation into Mortgage Fraud Allegations

Attorney General Pam Bondy has designated Ed Martin as a Special Attorney to look into mortgage fraud allegations concerning New York Attorney General Letitia James and California Senator Adam Schiff, as per sources familiar with the situation.

The Federal Housing Agency (FHFA) referred James to the Department of Justice (DOJ) back in April, suggesting that she may have forged mortgage documents to secure better loan terms.

In addition, FHFA Director Bill Prute indicated in a May communication that Schiff allegedly submitted falsified documents to obtain favorable terms on a property in Maryland.

According to a spokesman for Schiff, in 2023, his properties in California and Maryland were designated as primary residences “for loan purposes to differentiate them from properties on leave.”

Schiff’s attorney, Preet Bharara, expressed strong sentiments against the investigation, describing the allegations against Schiff as “transparently false, old, and widely debunked.” Bharara criticized Martin’s appointment, implying that it was driven by political bias, saying, “Mr. Martin’s partisanship and perceived conflict make him a questionable choice for this role.”

Bharara also noted that Martin had been turned down for a position as a U.S. attorney due to concerns about his partisanship and unfitness for the role, mentioning his previous work related to the January 6 events and various politically motivated investigations.

On a separate note, Letitia James faced legal scrutiny with a subpoena issued in New York just recently.

Special attorneys can conduct legal actions in jurisdictions outside their residence, and it has been noted that Martin was initially nominated for a role as U.S. attorney for the District of Columbia earlier in May but faced issues due to concerns surrounding his partisanship.

James’ office has not yet provided any public response to the ongoing developments.