Letitia Files: Legal Precedent Suggests Letitia James Could Face Disbarment in New York |

Bar Complaint Against Letitia James

Just weeks ago, America First Legal (AFL) lodged a formal complaint with the New York State Grievance Committee concerning Attorney General Letitia James.

New York’s legal profession is governed by rigorous ethical standards. Breaches, particularly those involving deceit or fraud, carry the risk of severe repercussions, including disbarment and potential criminal charges.

Historically, the state has stripped attorneys of their licenses for engaging in mortgage fraud, an ominous precedent for James.

Notable cases include Akintayo Abimbola Ayorinde, a Brooklyn attorney disbarred for his role in a scheme that defrauded lenders of more than $10 million, and George Guldi, a former legislator convicted of defrauding a mortgage lender out of over $250,000 while serving a prison sentence for unrelated charges.

Another case involved Thomas Cusack III, who was disbarred for neglecting to prevent a $98 million mortgage fraud scheme, despite lacking direct knowledge of the criminal activities.

Allegations Against James

The complaint from AFL accuses Letitia James of multiple acts of mortgage fraud and making false statements in official documents, conduct that they argue contravenes the New York Rules of Professional Conduct.

The allegations mirror those previously put forth by the U.S. FHFA and revolve around two primary claims.

Firstly, AFL asserts that James falsely designated a property in Norfolk, Virginia, as her “principal residence” on legal documents associated with a power of attorney for a home purchase, despite being legally domiciled in Brooklyn, New York. This misrepresentation allegedly enabled her to secure a mortgage under deceptive conditions and obtain more favorable loan terms.

The second claim pertains to a government-backed Home Affordable Modification Program (HAMP) loan application James submitted in 2011. AFL argues that she misrepresented the number of legal units in her Brooklyn apartment building, claiming fewer units than were actually present to qualify for reduced interest rates under the HAMP program.

Upon visiting James’s apartment building, it was confirmed that it consists of five apartment units across four floors, aligning with the official Certificate of Occupancy, contradicting her claim of three floors with four units in legal documents.

Possible Consequences

AFL’s complaint outlines several rule violations by James under the New York Rules of Professional Conduct, particularly Rule 8.4(b) and (c), which prohibit illegal conduct and acts involving dishonesty and fraud. Additionally, she is cited for Rule 1.6, concerning confidentiality, and Rule 3.3, which mandates a lawyer’s duty of candor to tribunals in relation to her public filings and legal assertions.

According to AFL, Letitia James’s actions represent professional misconduct warranting disciplinary actions that could result in suspension or disbarment. The organization emphasizes the critical need for public officials, especially the state’s chief legal officer, to adhere to the strictest ethical standards.

“The legal profession demands absolute integrity,” AFL stated in a public announcement. “If the allegations hold true, Ms. James not only deceived financial institutions but also breached the public trust and the very laws she is sworn to uphold.”

Nick Barry, Senior Counsel at America First Legal, remarked, “If the allegations are substantiated, Ms. James should resign immediately. The people of New York deserve an Attorney General who exemplifies the highest ethical standards of the legal profession.”

In a rather ironic twist, Letitia James, who has built a career championing accountability and declaring that “no one is above the law,” may soon find herself facing the very disciplinary actions she has advocated for against others.

The New York State Grievance Committee is poised to evaluate the AFL complaint and decide whether to initiate a formal investigation.

If probable cause is established, it could lead to disciplinary proceedings before the Appellate Division of the New York Supreme Court, mirroring recent punitive actions taken against other attorneys.

Joel Gilbert is a Los Angeles-based film producer and president of Highway 61 Entertainment. Follow him on Twitter: @JoelSGilbert.

Read the full complaint from AFL: