The Justice Department has launched a criminal investigation into New York Attorney General Leticia James, Fox News learned.
Sources familiar with the matter have confirmed that the large ju judge in the Eastern District of Virginia has sent a subpoena related to accusations that James misrepresented a Virginia single-family home as her primary residence in order to obtain more favorable loan terms.
News from the federal investigation follows a criminal introduction from William Prute, director of the Trump administration's federal housing finance agency. William Plute once again got better loan terms for another incident that allegedly misrepresented the number of livable units in the multi-family Brooklyn House.
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“These unfounded, long discriminatory allegations rested by my April 24 letter to the Department of Justice on April 24, suddenly returned to the news a few days after President Trump publicly attacked Attorney General James,” James' lawyer, Abbe Lowell, said Thursday.
“This seemed like political retaliation, President Trump threatened exactly that Ag Bondi ensured that the Senate would not occur in her surveillance. If prosecutors are genuinely interested in the truth, we are ready to meet false claims with facts.”
President Donald Trump and New York Attorney General Letitia James (Getty Images; Fox News)
After Pulte's criminal referral was sent to the Department of Justice, particularly the US Attorney General Pam Bondi, Lowell followed his own letter to Bondi and the Department of Justice, accusing him of seeking “political retaliation.”
James is part of a group of Democrat Attorney Generals who have called for stopping many of Trump's orders during his first months in the oval office.
Additionally, James was the lead prosecutor in the lawsuit she brought against Trump organization, which she claimed to be Trump and the president. He was ultimately ordered by a judge to pay hundreds of millions, but he still sues the ruling.
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President Donald Trump and Letitia James (Applications, Getty)
“The stunning hypocrisy of President Trump's complaints that the Justice Department has been “politicized” and “weaponized” against him is exposed as if he and others in his administration are asking you to take on the exact same practice,” Lowell wrote in a letter to Bondy.
In his letter, Lowell pointed to an instance in which Trump called for revenge and the president's personal attack on James.
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Lowell also responded to allegations that include claims that James lists his Virginia home as a major residence and serves as a state official in New York. According to Lowell, her signs in the letter approving this were wrong, as James had no intention of using the property as a primary residence. Lowell pointed out that there are other documents that showed James's lender that Virginia's home was not her primary residence.

New York Attorney General Leticia James and President Donald Trump (Michael M. Santiago/Bill Pugliano)
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James is also accused of scams that allegedly inflated the number of livable units in a multi-family Brooklyn home to receive better interest rates. Lowell has accused Pulte of ignoring updated documents listing residences as four-unit multifamily homes and instead pointing out certificates of occupancy from 2001.