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

by May 28, 2025
May 28, 2025

Guest post by Joel Gilbert

“We’re going to definitely sue him. We’re going to be a real pain in the ass. He’s going to know my name personally,” Letitia James said during her 2018 campaign for New York attorney general.

James campaigned openly on her intention to target President Donald Trump, describing him as an “illegitimate president” and an “embarrassment,” while pledging to pursue all legal avenues to scrutinize his finances and real estate transactions. After being elected, she said, “I look forward to seeing him in court when I assume my new position.”

Upon taking office in 2019, James promptly followed through, filing a lawsuit that ultimately led to a $454 million civil judgment against Trump and his organization for allegedly “overvaluing assets” on mortgage applications – despite industry-standard disclaimers advising lenders to conduct their own valuations.

But despite all of James’ efforts to harm him politically, Donald Trump won the presidency in a landslide in 2024. What happened?

The answer lies not in partisanship, but in principle. Even moderate and apolitical Americans had grown weary of Letitia James antics. They could sense a line had been crossed and that the apparatus of government under James looked more like a political campaign than a public service.

When government power is misused to punish political adversaries, most Americans instinctively see it as a betrayal of the country’s founding spirit. To them, it resembles the tactics of authoritarian regimes – not a free society.

Letitia James hunted down President Trump with junk charges while hiding her own nefarious acts.

Because America was founded as a democracy on the principles of equal justice under law, the weaponization of government agencies for political gain strikes at the very heart of public trust. Whether it’s law enforcement, the courts, the IRS, or intelligence agencies, their legitimacy rests on absolute neutrality.

The American Revolution itself was born out of resistance to arbitrary rule. Early Americans chafed under the British Crown’s abuses – searches without warrants, taxation without representation, and politically motivated crackdowns.

The Founders designed a constitutional republic with checks and balances precisely to prevent the rise of centralized power that could be wielded against dissenters. That legacy still informs modern civic expectations to this day.

That is why so many Americans 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 FBI investigation into her conduct has struck a chord.

First, the referral says that James fraudulently claimed a property in Norfolk, Virginia, as her “principal residence” on legal documents related to a power of attorney she executed to purchase a home.

At the time, she was legally domiciled in Brooklyn, New York. The referral asserts that this false representation enabled James to qualify for a mortgage under false pretenses and receive more favorable loan terms. This information first came to light in The Gateway Pundit article ‘Revealed: NY Attorney General Letitia James Declares Virginia Home Her Principal Residence’ by Sam Antar.

The second allegation centers on a government-backed HAMP loan (Home Affordable Modification Program) application James made in 2011.

The complaint mirrors my article in The Gateway Pundit, ‘Big Development: Is Letitia James Guilty of Mortgage Fraud?’ from March 18, 2025 and alleges 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 James was not eligible for.

The application was ultimately approved, and James obtained a favorable 2.7% interest rate with the government loan on the backs of American taxpayers. The referral also cites Letitia James’ illegal scheme whereby she claimed to have married her own father in a 1983 loan application to obtain lower interest rates.

At its core, the public perception of Letitia James weaponization of government isn’t about party – it’s about principle. Most Americans, regardless of political allegiance, understand that when power is misused today against one side, it can just as easily be turned against them tomorrow.

Americans want to live in a country where justice is blind, not vengeful, and where elections decide who governs, not partisan prosecutors. Should James ultimately face criminal charges, it will send a resounding message: justice must be even-handed, and those who wield power must do so responsibly or be held accountable. That, more than any partisan calculation, is why Americans are cheering the FBI investigation into Letitia James.

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

The post American Backlash: Why the Letitia James Mortgage Fraud Investigation Resonates with Americans appeared first on The Gateway Pundit.

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