A new charge for Letitia James’ Mortgage fraud case as a document from Citizens Bank in 2021 shows she listed her Brooklyn property as a single-family home to get a $200,000 “Credit Line Mortgage”
James is accused of misrepresenting her Brooklyn property, officially documented as a five-unit building, as a single-family home on a 2021 mortgage application.
This alleged misrepresentation allowed her to get lower interest rates and avoid the higher costs of a commercial loan, which is illegal and punishable by up to 15 years in prison.
Reports show that James listed the same Brooklyn property as a four-unit building on a different mortgage-related document, separate from the 2021 Citizens Bank application.
The four-unit designation appears in earlier mortgage records, where James also allegedly listed her father as her husband.
The Brooklyn property has been a focal point of the federal investigation launched by the FBI and U.S. Attorney’s Office in Albany, New York, following an FHFA referral in April.
By listing the property as a four-unit building in one instance and a single-family home in another, James allegedly tried to exploit loopholes in lending practices.
Residential loans for single-family or smaller multi-unit properties (typically four units or fewer) often have lower interest rates and less stringent requirements than commercial loans for five-unit buildings.
By James allegedly listing the property as both a single-family home and a four-unit property, the mortgage fraud case against her could be strengthened.
The ongoing DOJ investigation, led by Special Prosecutor Ed Martin, includes the Brooklyn property and her Virginia property which she also listed as her primary residence.
The investigation is looking into potential charges of wire fraud, mail fraud, bank fraud, and false statements to a financial institution, with grand jury proceedings active in Virginia and Maryland.
