HomePoliticsLetitia James Throws High-Dollar Fundraiser Amid Mortgage Fraud Allegations

Letitia James Throws High-Dollar Fundraiser Amid Mortgage Fraud Allegations

Sarah Johnson

Sarah Johnson

April 18, 2025

3 min read

Brief

New York Attorney General Letitia James launches a high-priced fundraiser amid federal mortgage fraud allegations involving her properties, raising questions as she seeks 2026 re-election.

New York Attorney General Letitia James is making headlines again, this time for launching a high-priced fundraiser just as she faces some serious allegations of mortgage fraud tied to multiple properties she owns.

The event, scheduled for Tuesday evening, invites supporters to part with sums ranging from $500 all the way up to $18,000—the legal max in New York—to back her 2026 re-election campaign. Talk about aiming high.

The invitation features a photo of James surrounded by a circular gay pride flag, a not-so-subtle nod to her progressive bona fides.

The gathering will be hosted at the home of activists Rod Grozier and Rob Smith, the latter being the CEO and founder of The Phluid Project, a gender-neutral clothing company. According to the event page on ActBlue, "Letitia James is fighting for our rights every single day. This is our opportunity to show Letitia that we have her back."

But the timing is quite something. James is currently under federal criminal referral for allegedly declaring a property in Norfolk, Virginia as her "principal residence" on official documents in August 2023, despite already serving as New York Attorney General and owning a home in Brooklyn. The law requires the AG to live in New York for at least five years prior to election and while in office.

Power of attorney documents related to the Virginia home, which she purchased with her niece, included James’s own signature and a declaration of intent to use the property as her main residence. Local neighbors told reporters they’d never seen her around. Not exactly neighbor-of-the-year material.

Federal Housing Finance Agency Director William Pulte took the matter up with U.S. Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, citing not just the Virginia residence saga, but also accusations that James misrepresented the number of units in a Brooklyn building she owns. She claimed four units—a sweet spot for favorable mortgage terms—while city records say five.

Pulte’s letter claims these actions could lead to criminal charges like wire fraud, mail fraud, bank fraud, and making false statements to a financial institution. James’ spokesperson has previously chalked up the allegations to political attacks and the "weaponization of the federal government," but notably, hasn’t directly denied any of the claims. Her office also didn’t respond to questions about the fundraiser.

Topics

Letitia JamesNew York Attorney Generalmortgage fraud allegationsfundraiser2026 re-electionproperty controversyBrooklynVirginia residencecampaign financepolitical scandalPoliticsNew YorkLegal IssuesFundraising

Editor's Comments

It’s almost poetic—fundraising for re-election while facing fraud allegations about your own homes. If nothing else, Letitia James knows how to multitask under pressure. Also, the choice of venue with lefty activists and the rainbow flag backdrop? That’s some next-level image management. I guess there’s no such thing as bad publicity… if you can afford the ticket price!

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