Federal Housing Finance Agency Director Bill Pulte has requested new criminal investigations into New York Attorney General Letitia James for alleged insurance fraud, according to multiple reports. The referrals were sent to federal prosecutors in Florida and Illinois, focusing on applications made by James to Universal Property Insurance Company in Florida and Allstate in Illinois.
Key Takeaways
Federal Housing Finance Agency Director Bill Pulte has referred New York Attorney General Letitia James for criminal investigation over alleged insurance fraud. The referrals were sent to federal prosecutors in Florida and Illinois, focusing on her insurance applications.
- Bill Pulte requests new investigations into Letitia James for alleged insurance fraud
- Referrals sent to U.S. attorneys in Illinois and Florida
- Previous mortgage fraud case against James was dismissed
- James's lawyer calls the charges politically motivated
Pulte's requests come after a similar mortgage fraud case against James in Virginia was dismissed. A judge ruled that the prosecutor, Lindsey Halligan, was unlawfully appointed, and prosecutors failed twice to convince a grand jury to indict James on the same charges.
The Trump administration has faced criticism for its unprecedented use of the justice department to investigate personal enemies, including former FBI director James Comey and Federal Reserve chair Jerome Powell. James's lawyer Abbe Lowell stated that the charges against her are politically motivated, accusing the administration of abusing their power to pursue a vendetta.
Federal prosecutors are also investigating James’s financial transactions with her hairdresser, who faces criminal charges for bank fraud and identity theft in Louisiana. James has been a prominent critic of Donald Trump, winning a $450 million civil judgment against him and his sons in 2024 for fraud, although an appellate court later threw out the financial penalties.
According to documents obtained by CNN, NBC News, and MSNBC, Pulte alleges that James may have defrauded both Illinois-based and Florida-based insurance companies through her applications for homeowners insurance on two properties in Norfolk, Virginia. The referrals reference publicly available court documents from James' previous case published online by lawyer Mike Davis.
A Justice Department spokesperson confirmed to CNN the receipt of these referrals. Lowell accused Trump and his administration of abusing their power to pursue a vendetta against James, stating that they continue an improper revenge campaign instead of addressing national issues like rising living costs.
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