Letitia James says mortgage fraud fees ought to be dropped as a consequence of “outrageous authorities conduct”

New York Lawyer Basic Letitia James’ attorneys accused the Trump administration of “outrageous authorities conduct” on Monday, arguing the fraud fees in opposition to her had been “patently unconstitutional” and supposed to punish James for her opposition to President Trump.  

James is asking a choose to toss out her indictment with prejudice, which means it couldn’t be reintroduced. She was charged in October with financial institution fraud, with prosecutors accusing James — a longtime foe of Mr. Trump who sued him in civil court docket for fraud, which he has denied — of shopping for a house in Virginia and falsely calling it a second residence as a substitute of a rental property in an effort to get a decrease rate of interest.

In a 22-page submitting Monday, James alleged the fees had been the product of “months of unlawful and unethical habits” by Honest Housing Finance Authority (FHFA) Director Invoice Pulte, prime Justice Division official Ed Martin and interim U.S. Lawyer Lindsey Halligan.

“If this brazen, steady disregard for the legislation and the Structure shouldn’t be outrageous authorities conduct, nothing is,” James’ attorneys wrote. They referred to as her indictment a violation of the Fifth Modification, which ensures a proper to due course of.

CBS Information has reached out to FHFA and the Justice Division for remark.

Invoice Pulte

The mortgage fraud investigation into James started after Pulte, whose company oversees the government-sponsored mortgage giants Fannie Mae and Freddie Mac, referred her for prosecution earlier this yr, citing a number of situations of alleged mortgage fraud. 

James’ attorneys alleged Monday that Pulte “remodeled the little-known company right into a weapon to be brandished in opposition to President Trump’s political enemies.”

They pointed to messages between two Fannie Mae officers, together with the director of mortgage fraud and the vice chairman of economic crimes, wherein one says “the [James] case is actually not clear and convincing proof” of mortgage fraud.

Her authorized workforce additionally referred to as the origins of the James probe “suspect,” claiming Pulte might have relied on both a “fringe blogger,” data in county databases that he purchased or Fannie Mae mortgage information that had been “unlawfully accessed.”

Based on James’ authorized workforce, Pulte despatched a non-public letter to Halligan, a former White Home aide who’s main the prosecutions of James and former FBI Director James Comey, summarizing info on James’ properties. That info, they are saying, was then utilized in half in James’ grand jury proceedings.

Pulte, a vocal Trump ally, has additionally referred Democratic Rep. Eric Swalwell, Federal Reserve Board Member Lisa Prepare dinner and Democratic Sen. Adam Schiff to the Justice Division for legal prosecution for allegedly committing mortgage fraud.

James’ authorized workforce claims Pulte is working in his position illegally as a result of he appointed himself chairman of each Fannie Mae and Freddie Mac after eradicating their board members, and is concurrently answerable for the group that oversees them, the FHFA. The company’s rules require Fannie and Freddie to have impartial chairs, the submitting says. 

“As FHFA Director, Pulte is the furthest factor from impartial,” James’ attorneys stated.

Ed Martin

In its submitting Monday, James’ authorized workforce questioned the position of Martin, who’s the U.S. Pardon Lawyer and particular lawyer for mortgage fraud on the Justice Division. They stated Martin “has engaged in a well-documented collection of actions that can not be described as something however outrageous.”

In August, Martin despatched a letter to James’ workplace in New York that insisted she “resign from workplace,” James’ attorneys allege, to “give the individuals of New York and America extra peace than continuing.”

“The letter was not an try to research the information, nor did it conceal his plain intention to stress the sitting Lawyer Basic of New York to resign from workplace or face legal prosecution,” James’ attorneys wrote, including that “the letter, by itself, violated Justice Division guidelines, the Rules of Federal Prosecution, and varied codes {of professional} duty and ethics.”

Days later, Martin was photographed in entrance of James’ Brooklyn residence “adorned in an Inspector Gadget-inspired beige trenchcoat,” which James’ attorneys say was supposed to “intimidate” the New York lawyer normal.

Lindsey Halligan

The submitting Monday additionally takes goal at Halligan, who was appointed to guide the Justice Division’s outpost within the Jap District of Virginia in September, after the resignation of Erik Siebert. Shortly earlier than Halligan took workplace, Mr. Trump penned a Reality Social message urging Lawyer Basic Pam Bondi to look into Comey and James.

Final week, attorneys for James and Comey confronted off in opposition to the Justice Division earlier than a federal choose, arguing that the indictments Halligan has handed ought to be dismissed as a result of her appointment is illegal.

Each Comey and James are additionally arguing that their indictments are “vindictive prosecutions,” pushed by Mr. Trump’s longstanding private animus towards each.

James sued Mr. Trump and his firm for fraud in 2022, alleging they misrepresented the worth of their properties to get extra favorable lending phrases. A choose sided with James and ordered Mr. Trump and the opposite defendants to pay greater than $350 million, plus curiosity, however a New York appellate court docket threw out the greenback determine earlier this yr, calling it “extreme.” Mr. Trump has lengthy denied any wrongdoing within the civil fraud case.

Comey, in the meantime, has publicly sparred with Mr. Trump for the reason that president fired him as FBI director throughout his first time period.

James’ attorneys in Monday’s submitting wrote that administration officers “intend to punish AG James for daring to take a stand in opposition to the President—each on this Courtroom and by making the investigation of her so public and intrusive that the pre-trial course of itself serves as punishment.”