Federal Agency GOES After New York AG

Federal Housing Finance Agency Director Bill Pulte has referred New York Attorney General Letitia James to federal prosecutors in Florida and Illinois for alleged homeowner’s insurance fraud, marking the latest legal action against the Trump administration critic who previously faced dismissed charges.

New Criminal Referrals Target Insurance Applications

Pulte sent letters on Wednesday to U.S. Attorneys in Miami and Chicago alleging James may have falsified information on homeowner’s insurance applications. The Florida referral involves a Fort Lauderdale-based company, Universal Property Insurance, while the Illinois referral concerns Allstate. President Trump announced the development on Truth Social Wednesday night, stating James had been referred again for criminal prosecution over alleged homeowner insurance fraud.

The Florida case lands with U.S. Attorney Jason Reding Quinones, who currently leads an investigation into Obama-era officials, including former CIA Director John Brennan, regarding the 2016 election interference intelligence assessment. Last year, Quinones also sought records connected to special counsel Jack Smith’s investigations into President Trump. MS NOW first reported the criminal referrals before major networks picked up the story.

Attorney Calls Referrals Political Vendetta

Abbe Lowell, representing James, condemned the Trump administration for abusing power to pursue a vendetta by trying to rename, refile, and repeat baseless allegations. Lowell declared these desperate tactics will fail just as every previous attempt has failed, exposing an administration that abandoned its responsibility to the American people for petty political payback. The statement reflects ongoing tensions between James and Trump, whose legal battles stretch back years.

Previous Mortgage Fraud Case Background

Earlier charges against James centered on a Virginia property she purchased in 2020. The indictment alleged she obtained a mortgage requiring the property be used as a second home but instead rented it out as an investment property, securing a lower mortgage rate through misrepresentation. That indictment followed a different Pulte referral regarding possible mortgage fraud, though prosecutors charged her over a separate property not listed in the original referral. Pulte subsequently requested a protective security detail over alleged threats connected to the James case, CBS News reported earlier this month.

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