Trump housing chief requests new criminal investigation into Letitia James

The Trump administration’s federal housing director Bill Pulte is asking prosecutors to investigate New York attorney general Letitia James for insurance fraud, according to criminal referrals reported by MS Now and CBS News.

The referrals to prosecutors in Florida and Illinois allege that James may have committed mortgage insurance fraud. The allegations center on applications made to Universal Property Insurance company, which is based in Florida, and Allstate in Illinois.

A similar mortgage fraud case filed against James in Virginia fell apart after a judge ruled that the prosecutor, Lindsey Halligan, was unlawfully appointed. Prosecutors there failed twice in their attempts to convince a grand jury to indict James on the same charges.

Federal prosecutors are also investigating James’s financial transactions with her hairdresser, who faces criminal charges for bank fraud and identity theft in Louisiana, according to the New York Times.

James is a prominent foe of Donald Trump. Her office won a $450m civil judgment against him and his sons in 2024 for fraud, but a five-judge panel tossed the financial penalties last year. James’s office is appealing to have the penalty reinstated.

The Trump administration has made unprecedented use of the justice department to investigate personal enemies, including former FBI director James Comey, Federal Reserve chair Jerome Powell and Minnesota governor Tim Walz.

In a statement, James’s lawyer Abbe Lowell said the charges against James were politically motivated.

“Frustrated by repeated failures, where judges and grand juries have rejected their attempts to charge Attorney General James, Trump and his political enablers keep abusing their power to pursue a vendetta against her by trying to rename, refile, and repeat baseless allegations,” Lowell said.