New York Attorney General Letitia James’s legal defense could soon be funded by taxpayers if the criminal investigation against her leads to charges, according to a new report.
The FBI’s Albany office is reportedly investigating James over real estate and mortgage activities, specifically her claim that a Virginia home would be her primary residence while serving as New York’s attorney general.
The Western Journal reports the revelations emerged following leaks that the Democrat-led state Legislature quietly included a $10 million legal defense fund in the state budget.
The fund would cover legal expenses for state officials facing federal investigations initiated during the Trump administration.
The bill reportedly covers officials who “obtained representation by private counsel in response to any request, summons, command, subpoena, warrant, investigative interview or document request, audit or legally compulsive process” related to their work for the state under Trump-era scrutiny.
New York Republican State Committee Chairman Ed Cox condemned the fund, calling it an “outrageous abuse of power and a slap in the face to every New Yorker.”
“This is what corruption looks like in plain sight: political insiders rigging the system to protect their own, while hardworking families get shortchanged,” Cox said in a statement.
Tish James used her office to wage partisan lawfare against her political opponents, and now New Yorkers are footing the bill for the consequences,” he added.
Rep. Elise Stefanik also criticized the provision, referring to it as the “Democrats’ Disgraceful Slush Fund.” In a statement posted on her official website, she wrote:
“Kathy Hochul and Albany Democrats have reached a new low in their corrupt, far-left agenda by sneaking language into the state budget that misuses hardworking New Yorkers’ tax dollars to bankroll Letitia James’ legal defense against serious allegations of mortgage fraud.
Letitia James, who illegally weaponized her office to pursue politically motivated witch hunts, now expects taxpayers to foot the bill for her alleged misconduct. Meanwhile, New Yorkers are crushed by skyrocketing crime, a mass exodus from our state, and a cost-of-living crisis fueled by Hochul’s failed policies. Instead of addressing these urgent issues, Albany Democrats are doubling down on shielding their corrupt allies.
This shameful abuse of public funds demands accountability. I call on Governor Hochul to immediately remove this provision from the budget and for an independent investigation into James’ alleged fraud.“
The New York Post editorial board also weighed in, blasting the budget provision:
“There is absolutely no reason for taxpayers to have to bail out James. If she didn’t do anything wrong, as she claims, then the case should be easily dismissed. And if there is a case, well, didn’t she say that no one is above the law? That doesn’t mean no one is above legal bills.”
“Bailing out James isn’t just offensive on its own. The bill is so broad that it would cover just about any federal investigation of anyone who cashes a state paycheck.”
“James has already established a private legal defense fund to fight possible federal charges, so it’s not even clear that she needs a taxpayer bailout here.”
“Does James want to show New Yorkers that she really stands for them? Then she should side with taxpayers and tell lawmakers to forget about this bailout.”
In April, the U.S. Federal Housing Finance Agency referred James to Attorney General Pam Bondi, citing “irregularities in a series of loans James obtained” involving two properties.
If convicted, James could face years behind bars.
Back in February 2024, James celebrated a guilty verdict against then-candidate Donald Trump for allegedly inflating the Trump Organization’s value to secure favorable loans.
“I want to be clear: White collar financial crime is not a victimless crime,” James said at the time.
“When the powerful break the law and take more than their fair share, there are fewer resources available for working people, small businesses, and families, and everyday Americans cannot lie to a bank about how much money they have in order to get a mortgage to buy a home … and if they did, the government would throw the book at them.”
“The scale of Donald Trump’s fraud is staggering, and so is his ego,” she added.
Now, James finds herself on the other end of similar allegations.
The same woman who targeted a presidential candidate is now accused of committing serious acts of property fraud herself.
In his referral letter, William Pulte of the U.S. Federal Housing Finance Agency wrote:
“In the course of exercising U.S. Federal Housing’s authority under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, U.S. Federal Housing has identified matters that are appropriate for referral to the U.S. Department of Justice for consideration of criminal prosecution.”
“Based on media reports, Ms. Letitia James has, in multiple instances, falsified bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms.”
“This has potentially included 1) falsifying residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate and 2) misrepresenting property descriptions to meet stringent requirements for government-backed loans and government assistance.”
As the investigation intensifies, New Yorkers now face the real possibility of paying to defend one of the state’s most controversial political figures.
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What a disgusting load of $&@#, matched only by the insanity of New York voters…
She should have a nice balance in commissary at the state pen. Donuts are not cheap.
The democrat voters of New York can reap what they sow.
How about it, dem voters? Had enough yet? How much of this cr@p are you going to take? Ready to take that “kick me” sign off your back?
New Yorkers will never learn.