Under federal scrutiny following an April 14, 2025 criminal referral from the Federal Housing Finance Agency to the DOJ for alleged mortgage fraud, New York Attorney General Letitia James filed her latest financial disclosure statement on May 13, 2025. Made public today, the filing raises serious questions about her compliance with New York State disclosure laws: an entire Virginia property she swore would be her “principal residence” is missing, two non-existent mortgages on another Virginia property are reported while a documented one is concealed, and her Brooklyn building continues to be misrepresented as having four units instead of five.
While the FHFA alleged James “falsified bank documents and property records to acquire government-backed assistance and more favorable loan terms” across multiple properties, this article examines a separate but related issue: her apparent failure to truthfully disclose her financial interests to New York State as required by law.
Yet instead of correcting these disclosure issues, James—now represented by high-profile defense attorney Abbe Lowell—has doubled down by omitting mortgages, reporting phantom loans, and concealing property. This raises troubling questions about Lowell’s legal strategy: allowing a client to file potentially false disclosures while under federal investigation violates the most basic norms of white-collar defense: tell the truth—especially when the DOJ is watching.
Legal Implications of Financial Disclosure Violations
- False Statements: Filing incorrect financial disclosures (18 U.S.C. § 1001)
- Federal Mail/Wire Fraud: Filing false financial disclosures via mail or electronic systems could constitute mail fraud (18 U.S.C. § 1341) or wire fraud (18 U.S.C. § 1343), carrying penalties up to 20 years imprisonment and substantial fines
- Ethics Violations: Failing to disclose properties and interests violates NY Public Officers Law § 73-a
- Civil Penalties: Fines up to $40,000 for knowing and willful violations of disclosure requirements
- Criminal Misdemeanor Charges: Potential Class A misdemeanor under NY law for false filings, punishable by up to one year imprisonment and/or a fine up to $1,000 (Public Officers Law § 73-A(4), Penal Law § 70.15)
Let’s examine each property to understand these discrepancies.
Property #1: 604 Sterling Street – The Hidden Home
Summary: James swore this Virginia property would be her “principal residence” to secure a $219,780 mortgage—a potential federal felony if false—then concealed its very existence from her financial disclosure.
On August 17, 2023, James signed a specific power of attorney declaring under oath:
“I HEREBY DECLARE that I intend to occupy this property as my principal residence.”
This $240,000 property, co-owned with her niece Shamice Thompson-Hairston as “joint tenants with right of survivorship,” secured an AnnieMac mortgage that was specifically underwritten based on her sworn residency declaration. This owner-occupancy classification typically provides more favorable terms, including potentially lower interest rates and reduced documentation requirements. The loan required both borrowers to establish residence within 60 days and maintain it for at least one year.
Despite obtaining this mortgage under her residency declaration, James never corrected this statement with the lender.
Six weeks after signing, James was in Manhattan launching her fraud case against Trump—never having moved to Virginia. Her 2023 and 2024 disclosures contain no mention of the property or mortgage.
Under New York ethics law, the omission is indefensible:
- The property is co-owned with a relative who is not a member of James’ household
- The mortgage exceeds $10,000 and must be reported under Public Officers Law § 73-a
- Out-of-state investment properties do not qualify for personal residence exemptions
Lowell’s Own Words Condemn the Omission
In an April 24, 2025 letter to U.S. Attorney General Pamela Bondi, James’ attorney Abbe Lowell explicitly stated James was a “non-occupying co-borrower” with no intent to occupy the Sterling Street home.
This admission creates a devastating contradiction: either James committed mortgage fraud by falsely declaring her intent to live there, or she’s now violating financial disclosure laws by concealing a property she co-owns with a relative. Either way, the property legally required disclosure.
This contradiction has heightened legal implications. If James never intended to live at the Sterling Street property (as Lowell claimed to the DOJ), then her mortgage application contains a false statement—potentially constituting mortgage fraud. By subsequently filing New York State financial disclosures that entirely omit this property through mail or electronic systems while under federal investigation, her actions could additionally constitute mail fraud (18 U.S.C. § 1341) or wire fraud (18 U.S.C. § 1343). Lowell’s letter to the DOJ creates documentary evidence that directly contradicts James’ mortgage application—leaving her with no legally safe position regarding the Sterling Street property.
Critical Timeline
- August 17, 2023: Declares “intent to occupy this property as my principal residence”
- October 2, 2023: Launches Trump fraud trial in Manhattan (never moves to Virginia)
- April 14, 2025: FHFA issues criminal referral citing loan misrepresentations
- May 13, 2025: Files disclosure omitting property and mortgage entirely
Property #2: 3121 Peronne Avenue – The Phantom Mortgages
The Phantom Mortgages Summary: She reported two mortgages that don’t exist and completely concealed the actual $109,600 OVM Financial mortgage she used to purchase this property for $137,000 in August 2020.
In her 2023 and 2024 disclosures, James claimed two mortgages for her first Norfolk property at 3121 Peronne Avenue:
- Freedom Mortgage: $150,000–$250,000
- National Mortgage: $100,000–$150,000
According to property records, neither mortgage exists. A title search in early 2025 confirmed that OVM Financial holds the only recorded mortgage on this property—a $109,600 loan that has never appeared in her financial disclosures from 2020 through 2024.
The pattern is revealing: in her 2020 disclosure, James reported rental income of $1,000-$5,000 from this property. This income completely disappeared from her 2021, 2022, 2023, and 2024 disclosures—despite her continued ownership. As rental income vanished, phantom mortgages appeared.
The “Clerical Error” Defense Falls Apart
Defenders might claim James simply confused her loans—perhaps “Freedom Mortgage” ($150,000-$250,000) was really the AnnieMac loan ($219,780) on Sterling Street, and “National Mortgage” ($100,000-$150,000) was the OVM Financial loan ($109,600) on Peronne Avenue.
This explanation is impossible for three simple reasons:
- If “Freedom Mortgage” was meant to be AnnieMac, why is it on the wrong property? James listed it on Peronne Avenue, not Sterling Street.
- If this was just confusion, why is the Sterling Street property completely missing from her disclosure—not just misidentified?
- If “National Mortgage” was the OVM loan from 2020, why did she never disclose it in 2020, 2021, or 2022 before suddenly listing it under a different name?
These aren’t typos. They’re statements made under penalty of perjury that cannot be explained by simple clerical errors. Either James is reporting fictional debts or hiding actual ones. The “clerical error” defense simply doesn’t explain the facts.
Property #3: 296 Lafayette Avenue, Brooklyn – The Five-Unit “Four-Unit” Building
Summary: For over two decades, she’s misrepresented a legally documented five-unit building as having only four units—a fiction that enabled her to obtain federal mortgage assistance.
James’ Brooklyn brownstone at 296 Lafayette Avenue is listed as a “4-unit” dwelling in her 2024 form, with a reported value between $2.25 and $2.5 million and a Wells Fargo mortgage of $500K–$750K.
The Certificate of Occupancy from January 26, 2001 explicitly classifies the property as a five-family dwelling under Building Code classification C2. No approved reduction in unit count has ever been filed with the Department of Buildings.
Under federal lending standards, properties with five or more residential units are classified as commercial rather than residential. This triggers different underwriting requirements, including higher down payments (typically 25-30% versus 15-20%), higher interest rates, and stricter debt service coverage ratios.
Multiple Confirming Sources
The five-unit classification is confirmed by multiple independent sources:
- Con Edison records show six electric meters—five apartments and a common area
- Five doorbells were confirmed during an on-site visit
Mortgage Implications
This classification is significant. In 2011, James received a federal HAMP mortgage modification—a program explicitly limited to buildings with four or fewer units. The handwritten notes on the mortgage documents, including a hastily added “4 fam” notation, suggest deliberate effort to maintain eligibility for this beneficial program.
The 2024 filing continues this pattern of misrepresentation spanning more than two decades.
Missing and Misclassified Mortgages: The Lafayette Avenue Pattern
James’ financial disclosures show persistent irregularities in reporting mortgage liabilities that have continued into her 2024 filing:
The Vanishing Citibank HELOC
In August 2019, James recorded a Citibank HELOC for $100,000 on her Lafayette Avenue property, but this loan followed a puzzling disclosure pattern:
- 2019-2021 Disclosures: She failed to report it for three consecutive years, despite the requirement to report all mortgages and HELOCs on income properties “regardless of the amount owed or drawn”
- 2022 Disclosure: The HELOC finally appeared, but was misclassified as a traditional mortgage
- 2023 Disclosure: The loan mysteriously vanished from her filing
- 2024 Disclosure: The loan remains absent, despite no public record of satisfaction or discharge
The Citizens Bank HELOC Classification Shift
Similarly troubling is the treatment of a Citizens Bank HELOC recorded in July 2021:
- 2021 Disclosure: Despite being recorded in July 2021, the loan was completely omitted from that year’s disclosure
- 2022 Disclosure: The loan belatedly appeared, classified as a mortgage
- 2023 Disclosure: The loan was reclassified as a home equity loan
- 2024 Disclosure: The loan continues to be reported as a home equity loan
The Phantom First Savings Bank Loan
Perhaps most puzzling is the First Savings Bank loan, which has appeared in James’ financial disclosures since at least 2020. This loan:
- Was not identified as a home equity loan until the 2023 disclosure
- Cannot be found in any ACRIS records despite extensive searches
- Continues to appear in the 2024 disclosure without any public documentation verifying its existence
A Consistent Pattern Extending to 2024
These irregularities aren’t isolated incidents but part of a consistent approach to financial reporting that has persisted across years and properties:
- Delayed reporting: Multiple loans appear in disclosures only years after they were established
- Misclassification: Loans repeatedly shift between categories without corresponding legal documentation
- Phantom mortgages: Multiple loans appear in disclosures that cannot be verified through public records
- Disappearing obligations: Loans vanish from disclosures without evidence of satisfaction or discharge
Most troubling is that these patterns have continued in the 2024 filing despite increased public scrutiny and James’ position as New York’s chief law enforcement officer—a role that demands meticulous compliance with disclosure laws she is responsible for enforcing against others.
The NY financial disclosure guide is unequivocal: all mortgages and HELOCs on income-producing properties must be disclosed, information must be accurate, and false statements can result in civil penalties up to $40,000 or criminal prosecution. The persistent inconsistencies across multiple years suggest not accidental oversights but a systematic approach to financial disclosure.
Conclusion: Disclosure, Deception, and What Comes Next
Letitia James signed her name to this document under penalty of perjury on May 13. She had ample time to correct the record. She had counsel. She had warning. She didn’t.
This wasn’t just a failure to disclose. It was a reaffirmation of a years-long pattern—now carried out in full public view, during a federal investigation, and with legal guidance from one of the nation’s most experienced white-collar defense attorneys.
These filings were submitted after James retained experienced white-collar defense attorney Abbe Lowell, raising questions about the legal strategy behind continuing these disclosure patterns despite ongoing federal scrutiny.
Disclosure is no longer the question. Accountability is.
Written by,
Sam Antar
© 2025 Sam Antar. All rights reserved.