New York Attorney General Letitia James—already facing a federal criminal referral—now faces a potential state probe regarding her reporting of properties she owns in Virginia.

America First Legal, a conservative government watchdog, filed a bar complaint against James with the New York Committee on Professional Standards, seeking an investigation into the statements made in a criminal referral the Federal Housing Finance Agency sent to the U.S. Justice Department. 

Long prominent in New York politics, James became a national figure when her office sued and won against then-former President Donald Trump when he was out of office and running for another term in 2024. She alleged Trump’s companies falsified information to obtain loans.  

On April 14 of this year, Federal Housing Finance Agency Director William Pulte sent a criminal referral to the Justice Department alleging that James “falsified bank documents and property records to acquire government-backed assistance” as well as “loans and more favorable loan terms.”

“If what Director Pulte uncovered is true, then we have a sitting state attorney general who made false certifications to the United States in return for federal benefits,” Dan Epstein, America First Legal vice president, said in a public statement.  

“But why worry about committing fraud against American taxpayers when you are willing to buck your ethical duties to the bar?” Epstein continued. “For a state prosecutor who has maligned the president of the United States for political gain, public accountability will serve as a cure to Letitia James’ endless lawfare and abuse of power.” 

The New York State Attorney General’s Office did not respond to phone and email inquiries from The Daily Signal on Wednesday. 

On April 24, James’ lawyer, Abbe Lowell, sent a letter to U.S. Attorney General Pam Bondi urging her against prosecution, The New York Times reported. Lowell’s letter said the criminal referral by the Federal Housing Finance Agency director was “improper political retribution” by Trump. 

The Federal Housing Finance Agency referral said that in August 2023, James was about to purchase a home in Norfolk, Virginia, and said the property would be her principal residence. That could potentially provide lower interest rates on a mortgage loan than in New York. 

The referral to the Justice Department further alleges that in 2001, James did not correctly report to the federal government the number of housing units that were in a building she owned in New York City. The number of units could have potentially brought more favorable loan terms, according to the referral and America First Legal. 

The America First Legal complaint alleges that if the actions in the referral are accurate, they would violate the New York State Bar Association’s rules of professional conduct. 

Specifically, America First Legal references Rules 8.4(b) and 8.4(c) that prohibit lawyers from engaging “in illegal conduct that adversely reflects on the lawyer’s honesty, trustworthiness, or fitness as a lawyer,” and from engaging “in conduct involving dishonesty, fraud, deceit, or misrepresentation.” 

In his letter to Bondi, James’ attorney Lowell said that in 2023, James assisted her niece with acquiring the Virginia property. He said the “one reference out of a file” was cherry-picked to make this case. As for the New York City property in 2001, Lowell said it was listed in multiple forms as being for four residents. 

“In fact, Mr. Trump has singled out Attorney General James dating back to her campaign in 2018, and even more so during the trials and verdict in New York, which Mr. Trump and the Trump organization were found liable for fraud,” Lowell said.

When reached, a staffer for the New York State Bar Association said the organization doesn’t adjudicate complaints against lawyers and referred The Daily Signal to New York’s Unified Court System. The spokesperson for the court system did not respond to confirm if it was investigating the complaint.