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American Focus > Blog > Politics > American Backlash: Why the Letitia James Mortgage Fraud Investigation Resonates with Americans |
Politics

American Backlash: Why the Letitia James Mortgage Fraud Investigation Resonates with Americans |

Last updated: May 28, 2025 6:29 am
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American Backlash: Why the Letitia James Mortgage Fraud Investigation Resonates with Americans |
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Guest post by Joel Gilbert

“We’re absolutely going to sue him. He’ll definitely know my name personally,” declared Letitia James during her 2018 campaign for the role of New York attorney general.

James made no secret of her intentions to pursue President Donald Trump, labeling him an “illegitimate president” and an “embarrassment,” while promising to explore every legal avenue to scrutinize his financial dealings and real estate ventures. After her election, she expressed eagerness, stating, “I look forward to seeing him in court when I take office.”

Upon her inauguration in 2019, James swiftly set her plan in motion, filing a lawsuit that culminated in a $454 million civil judgment against Trump and his organization for allegedly “inflating assets” on mortgage applications, despite the presence of industry-standard disclaimers urging lenders to perform their own assessments.

Yet, in spite of her relentless pursuits, Donald Trump emerged victorious in the 2024 presidential election by a significant margin. What could explain this unexpected outcome?

The answer lies not simply in partisan divisions, but in fundamental principles. Many moderate and apolitical citizens grew weary of Letitia James’ antics, sensing a critical boundary had been crossed. They perceived the machinery of government under her direction as resembling a political campaign rather than a public service.

When governmental authority is wielded to punish political rivals, it evokes a collective instinct among Americans that such actions betray the foundational ethos of the country. To many, it mirrors the tactics of authoritarian regimes rather than a thriving democracy.

Letitia James pursued President Trump with questionable charges while concealing her own dubious actions.

Since America was founded on the tenets of democracy and equal justice, the politicization of government entities for self-serving purposes undermines public trust at its core. The legitimacy of institutions—whether law enforcement, the judiciary, the IRS, or intelligence agencies—hinges on their unwavering neutrality.

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The American Revolution itself stemmed from a resistance to arbitrary governance. Colonists felt stifled by the British Crown’s abuses, such as unwarranted searches, taxation without representation, and politically motivated crackdowns.

The Founding Fathers established a constitutional republic with checks and balances specifically to avert the consolidation of power that could be exploited against dissenters. This legacy continues to shape the civic expectations of contemporary Americans.

This is why many welcomed the recent referral of mortgage fraud allegations against Letitia James to the Department of Justice by the U.S. Federal Housing Finance Agency (FHFA), and why news of an ongoing FBI investigation into her actions has resonated with the public.

First, the referral alleges that James falsely declared a property in Norfolk, Virginia, as her “principal residence” on legal documents related to a power of attorney executed for a home purchase.

At that time, she was legally residing in Brooklyn, New York. The referral claims that this misrepresentation enabled James to qualify for a mortgage under false pretenses, allowing her to secure more favorable loan terms. This information was initially revealed in a Gateway Pundit article titled ‘Revealed: NY Attorney General Letitia James Declares Virginia Home Her Principal Residence’ by Sam Antar.

The second allegation pertains to a government-backed HAMP loan (Home Affordable Modification Program) application James submitted in 2011.

The complaint echoes my previous article in , ‘Big Development: Is Letitia James Guilty of Mortgage Fraud?’ from March 18, 2025, claiming that James misrepresented the number of legal units in her Brooklyn apartment building, stating it had fewer units than it actually did to qualify for a reduced-interest-rate loan under the HAMP program for which she was ineligible.

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Ultimately, the application was approved, granting James a favorable 2.7% interest rate, subsidized by American taxpayers. The referral also highlights an illegal scheme where James purportedly claimed to have married her own father in a 1983 loan application to secure lower interest rates.

The public’s perception of Letitia James’ use of government power isn’t fundamentally about party lines; it’s about core principles. Most Americans, irrespective of their political affiliations, recognize that when power is misused against one faction today, it can just as easily be wielded against them tomorrow.

Citizens desire a nation where justice is impartial, not vindictive, and where elections determine leadership, not partisan prosecutors. Should James ultimately face criminal charges, it would send a powerful message: justice must be administered fairly, and those in positions of authority must act responsibly or face consequences. This, more than any partisan agenda, is why Americans are responding positively to the ongoing FBI investigation into Letitia James.

Joel Gilbert is a film producer based in Los Angeles and the president of Highway 61 Entertainment. He can be followed on Twitter: @JoelSGilbert.

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