New York Attorney General Letitia James is facing fresh legal troubles as a new state-level ethics complaint has been filed against her by the pro-Trump legal nonprofit America First Legal (AFL). This latest complaint comes on the heels of a criminal referral accusing James of mortgage fraud, further intensifying the political and legal storm surrounding her.
The complaint, filed last week with the New York State Unified Court System’s Committee on Professional Standards, urges the attorney grievance committee to open a formal investigation into James. The AFL alleges that James violated legal ethics standards after the Federal Housing Finance Agency (FHFA) recently accused her of falsifying mortgage records to obtain more favorable loan terms.
“For a state prosecutor who has spent years maligning the President of the United States for political gain, public accountability is the necessary remedy to Letitia James’ relentless lawfare and abuse of power,” said AFL Vice President Dan Epstein in a statement to Fox News Digital.
Mortgage Fraud Allegations
The accusations stem from a criminal referral submitted earlier this month by FHFA Director William Pulte to the Department of Justice. In his referral, Pulte alleged that James made false certifications on mortgage documents in order to receive federal benefits.
“If Director Pulte’s findings are accurate, then we have a sitting state attorney general who committed fraud against the United States government,” Epstein added.
According to the AFL’s complaint, James’ alleged actions violate the New York State Bar Association’s Rules of Professional Conduct, which prohibit illegal behavior and any conduct involving dishonesty, fraud, deceit, or misrepresentation—even if not criminally prosecuted.
High-Profile Legal Defense
In response to the mounting accusations, the New York Attorney General’s Office has retained powerhouse political attorney Abbe Lowell to defend James. Reporting from the Times Union indicated that hiring Lowell was motivated, in part, by the belief that the Trump administration is engaging in politically motivated retaliation against James, following her civil fraud lawsuit against Donald Trump last year, in which she accused him of inflating asset values to secure loans.
Lowell, a seasoned legal strategist, is expected to lead James’ defense against both the ethics complaint and the federal investigation.
Political and Legal Firestorm
The controversy has reignited fierce criticism from conservative legal analysts.
“I’m always amazed by the hypocrisy of politicians who accuse others of what they themselves are guilty of,” said Fox News legal analyst Greg Jarrett. “James told Trump that ‘no one is above the law,’ emphasizing his responsibility over documents signed by others. But unlike Trump, James is a trained lawyer—she knew, or should have known, that her own financial documents were false.”
When asked for comment, James’ office referred Fox News Digital to a letter written by Lowell in response to the FHFA’s criminal referral.
In that letter addressed to Attorney General Pam Bondi, Lowell condemned the referral as “an improper act of political retribution” orchestrated by Trump and his allies.
“The breathtaking hypocrisy of President Trump’s complaint about a politicized Justice Department is exposed when he engages in exactly the same tactics,” Lowell wrote.
Disputing the Allegations
Lowell also directly challenged the specifics of the accusations.
Regarding claims that James listed a Virginia property as her primary residence while serving in New York, Lowell argued that this was an honest error on a power-of-attorney form. Other loan documents, Lowell emphasized, clearly stated that James never intended to use the Virginia property as her primary home.
A second allegation claims that James inflated the number of livable units in a Brooklyn multifamily building to secure better loan rates. Here too, Lowell countered that Director Pulte was citing outdated occupancy certificates from 2001, ignoring updated records that correctly classify the property as a four-unit residence.
What Comes Next
Fox News Digital contacted the New York State Unified Court System to inquire about the next steps regarding the AFL’s ethics complaint but received no response by the time of publication. Similarly, the New York State Bar Association declined to comment, noting that attorney discipline matters fall under the court system’s jurisdiction, not theirs.
As the legal battles escalate, Letitia James finds herself entangled in a complex and politically charged fight—one that could have significant ramifications for her career and reputation.