New York Attorney General Letitia “Tish” James has found herself at the center of a widening federal investigation. On Friday, Department of Justice Special Attorney Ed Martin was spotted outside James’ Clinton Hill brownstone in Brooklyn. His visit marks the latest step in a mortgage fraud probe that could have significant political and legal consequences.
Martin, wearing a beige trench coat, inspected the property at 296 Lafayette Avenue, a multi-family dwelling now under federal scrutiny. The New York Post reported that Martin was appointed by Attorney General Pam Bondi just last week to lead parallel probes into James and California Senator Adam Schiff. Both face allegations of falsifying property records to secure preferential loan terms.
Allegations of Misrepresentation
According to investigators, James listed her Brooklyn property as a four-unit dwelling instead of five. That seemingly small change carried major implications. By classifying the building as four units, James allegedly positioned herself to qualify for more favorable mortgage programs offered by Fannie Mae and Freddie Mac.
These programs often provide lower down payments and reduced interest rates — benefits that would not extend to larger properties. Critics argue that such misrepresentation, if proven, amounts to mortgage fraud.
Confrontation With Neighbors
Martin’s visit did not go unnoticed. A local resident confronted him and his colleague, demanding answers.
“Tell me why you’re here,” the neighbor pressed. “You’re not here about the houses. You’re here because of who lives here. It’s my neighborhood. It’s my block.”
Martin, deflecting, responded: “I’m just looking at houses, interesting houses. It’s an important house.”
The neighbor disagreed: “It’s not. It’s just like every other tract house on this block.”
Martin eventually walked away, offering only that it was a “beautiful neighborhood.”
A Growing Federal Case
The investigation traces back to April, when Federal Housing Finance Agency Director Bill Pulte referred the case to the Department of Justice. According to reports, James allegedly misrepresented not only her Brooklyn home but also a property in Norfolk, Virginia. She claimed the Norfolk residence would serve as her “principal residence,” despite actively serving as New York Attorney General.
Additional allegations include signing mortgage papers with her father under the designation of “husband and wife,” raising further questions about compliance with lender requirements.
“Bill Pulte and his FHFA team got this started with his criminal referral,” Martin explained last week. “And as Tish James and Adam Schiff always say: ‘Nobody is above the law.’”
Parallel Investigations Into Schiff
The mortgage probe has also expanded to include California Senator Adam Schiff. Grand juries in Virginia and Maryland are weighing potential indictments against both James and Schiff. Schiff’s legal team, however, has denounced the investigation as politically motivated.
“The allegations against Senator Schiff are transparently false, stale, and long debunked,” former U.S. Attorney Preet Bharara, representing Schiff, stated. “The bias here is glaring. Any supposed investigation led by [Martin] would be the very definition of weaponization of the justice process.”
DOJ’s Special Attorney Authority
Special attorneys like Ed Martin are empowered to conduct sensitive criminal investigations, including grand jury proceedings and prosecutions. They can operate outside of normal district limitations, which allows them to pursue high-profile and politically sensitive cases without the same restrictions as local U.S. Attorneys.
Martin himself carries significant credentials. A former acting U.S. Attorney for Washington, D.C., he has been tasked with carrying forward months of investigative work by DOJ and FBI officials. “Attorney General Bondi and President Trump have given me a very serious mission,” Martin said. “I am committed to going where the facts take me. It is my job to stick the landing.”
Political Implications
The probe into James and Schiff comes at a time of heightened scrutiny over political figures and their use of public trust. James has positioned herself as a key opponent of Trump in multiple high-profile legal battles, while Schiff has been one of the most vocal Democratic critics of the former president.
Both deny wrongdoing. Still, the optics of a federal investigation — complete with trench-coated prosecutors visiting a Brooklyn brownstone — could fuel controversy for months to come.
For James, the allegations strike at the heart of her credibility as New York’s top law enforcement officer. For Schiff, they pose yet another test in a career defined by partisan battles.
As Martin himself hinted, the investigations are only beginning: “Nobody is above the law.”
