Karma is a real you-know-what; just when you think you’ve gotten clear of it, it comes around and bites you right on your fourth point of contact.
Case in point: New York’s own Attorney General, Letitia James, and the unfolding saga of what looks a lot like mortgage fraud, according to an investigation by independent journalists, White Collar Fraud. Oh, the irony!
New York Attorney General Letitia James didn’t just misclassify her five-unit Brooklyn brownstone as a “4-family dwelling” on mortgage documents. As we’ve previously reported, this distinction is not trivial—properties with five or more units are considered commercial and subject to stricter lending rules. But our latest investigation reveals something even more troubling: on multiple occasions, James described the property as a “1-family,” “1–2 family,” or even “1–3 family” dwelling—designations that offer even greater mortgage advantages than the 4-family classification, including lower interest rates, reduced reserve requirements, and easier approval thresholds.
This isn’t a minor paperwork discrepancy. Five-unit buildings are classified as commercial properties under federal lending guidelines, subject to stricter underwriting standards, higher down payments, and less favorable terms. By repeatedly downgrading the unit count—sometimes to as low as a single-family home—James may have accessed residential mortgage products exclusively designed for primary residences with substantially more favorable terms.
Oh, that’s rich. Pardon me a moment, I have to burst out laughing.
OK, now that’s out of my system. Here’s where she screwed up.
The official Certificate of Occupancy for 296 Lafayette Avenue clearly and explicitly states “Five (5) Family Dwelling” in all capital letters. This official document, dated January 26, 2001, establishes the legal occupancy status of the building: View Certificate of Occupancy
Yet just two months after that Certificate of Occupancy was issued, James signed mortgage documents describing the property as a “One or Two Family” dwelling—the most aggressive misclassification possible, delivering the greatest mortgage advantages under residential lending programs.
There’s a word for what Letitia James did here: Lying. As in, not telling the truth. As in, deliberately deceiving the mortgage underwriter.
You know. Fraud. It’s impossible to interpret this any other way. She can’t claim she “made a mistake,” nor can she claim she “didn’t know.” She knew. She knew that this was a five-unit dwelling, and she misrepresented it to get a better deal on a mortgage.
See Also: Huge Plot Twist: Anti-Trump AG and Resistance Hero Letitia James Facing Federal Criminal Referral
Anti-Trump Crusader Letitia James’ Response to Possible Federal Charges Is Laugh-Out-Loud Hysterical
The irony in this is palpable. She assembled a veritable tissue of whoppers to try to convict President Trump of “misrepresenting” property values for financial gain, among other things. And now, here she is, red-handed and red-faced, trying a (smaller) version of exactly what she was trying to accuse President Trump of doing. Best of all, it hasn’t gone unnoticed. At least one New York politico, Rensselaer County’s Steven McLaughlin, doesn’t find this funny at all.
Today, following allegations of mortgage fraud against her, I have sent a letter seeking disciplinary proceedings to determine whether Letitia James is fit to hold a law license in this state.
I believe she is not and her license should be revoked. pic.twitter.com/OhJEgkvwYf— Steve McLaughlin (@SteveMcNY) April 17, 2025
You can view the Certificate of Occupancy for the property here. It’s very clear: Five dwellings. Not one. Not three. Five.
When she tried to bring civil fraud cases against Donald Trump, Letitia James was throwing big, fat stones from within her glass house. Now it’s catching up with her. And it’s just so funny. I’ll be chuckling about this for the rest of the day.
The Deep State is working overtime to subvert President Trump’s agenda and the will of the people.
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