Twenty-four hours.
That’s how long it took between The Guardian reporting that a federal grand jury had been impaneled in Virginia to investigate New York Attorney General Letitia James and the NY Post revealing that Governor Kathy Hochul had secured a $10 million taxpayer-funded legal defense shield, and sources confirming the FBI had opened a formal criminal investigation into James.
For two decades, James built her career prosecuting financial fraud. She secured a $355 million judgment against Donald Trump for property misrepresentations. She declared “no one is above the law.”
But when these federal investigations escalated in May, the pattern was already clear: over the prior year, the Attorney General had begun channeling taxpayer funds to the firm employing the Governor’s husband. By the time Hochul approved a $10 million legal shield for James, those payments were ongoing—and would ultimately total $483,404.
The numbers tell the story:
Fourteen months—how long Davis Polk & Wardwell went without receiving a single payment from the Attorney General’s office, despite having a $325,000 contract.
Four months—how long after the Governor’s husband joined Davis Polk’s White Collar Defense unit before the first payment finally arrived: $231,644.
Sixteen months—how long payments flowed to the Governor’s husband’s firm before James needed federal protection.
Twelve days after the FBI investigation was confirmed, Hochul was standing before reporters, her voice rising: “Hell, yeah,” federal prosecutors were targeting Democrats.
This is the story of what the public records reveal about power protecting power in New York.
Timeline: Key Events
| Date | Event | What the Records Show |
|---|---|---|
| Feb 1, 2023 | Davis Polk contract begins (Contract C106569, $325,000) | No payments flow for 14 months |
| Jan 2, 2024 | William Hochul joins Davis Polk ($949,946 in 2024) | Governor’s husband enters White Collar Defense unit |
| Jan 31, 2024 | Contract C106569 expires | No visible authority for continued payments |
| Mar 8, 2024 | Expired contract approved/filed | 37 days after expiration—unusual delay |
| Apr 30, 2024 | First AG payment to Davis Polk ($231,644) | Four months after William Hochul joined |
| Aug 23, 2024 | Contract amended (+$250,000, extends to Jan 2026) | Total value now $575,000 |
| Dec 17, 2024 | Our investigative reporting begins on James’s financial issues | Campaign spending, financial disclosures questioned |
| Mar 18, 2025 | Gilbert publishes HAMP ineligibility article | Brooklyn property mortgage fraud exposed |
| Mar 18, 2025 | Our investigation exposes handwritten mortgage modifications | Evidence of retroactive document changes to circumvent federal lending rules |
| Apr 1, 2025 | Virginia residency declaration exposed | James’s false “principal residence” claim revealed |
| Apr 14, 2025 | FHFA criminal referral to DOJ | Federal agency accuses James of falsifying documents |
| Apr 18, 2025 | James’s office calls allegations “baseless” on social media | Official AG accounts used for personal defense |
| May 8, 2025 | Guardian reports federal grand jury impaneled in Virginia | Investigation escalates to criminal proceedings |
| May 8, 2025 | NY Post reports FBI investigation in Northern District | Multipronged federal investigation confirmed |
| May 8, 2025 | Hochul’s budget passes with $10M legal defense fund | For employees facing federal “retaliation” |
| May 21, 2025 | Hochul: “Hell, yeah” investigations are political | Public defense of federal investigation target |
The Setup
A Legal Contract, Filed Too Late
It began with a contract that generated no payments.
On February 1, 2023, Davis Polk & Wardwell—one of Manhattan’s most prestigious law firms—entered into Contract C106569 with the New York Attorney General’s office. Value: $325,000. Duration: one year.
For fourteen months, the Attorney General’s office made no payments to Davis Polk under this contract.
This wasn’t indicative of broader financial constraints. From October 2021 through December 31, 2024, Davis Polk had collected $7.12 million from the Legislature and Assembly alone—all before the Governor’s husband joined the firm.
The Attorney General’s office remained the sole holdout. Month after month, no payments flowed to Davis Polk.
📄 Download Complete Payment Records
Note: Payment system uses contract ID 141040, corresponding to contract C106569 in state documents
Until January 2024.
The Player Enters
On January 2, 2024, William Hochul Jr. walked into Davis Polk’s Manhattan offices for his first day of work. The Governor’s husband had left his position at Delaware North for a prestigious role in the firm’s White Collar Defense & Investigations unit.
His compensation: $949,946 during 2024
His specialty: defending clients against federal criminal investigations.
Twenty-nine days later, the Attorney General’s contract with Davis Polk expired.
The Paperwork Problem
What happened next raises questions about basic government accountability.
State contracting rules require prompt filing of agreements. But Contract C106569 sat unfiled for 401 days after it began—including 37 days after the contract had already expired. This delay is extraordinary—most government contracts are filed immediately or within days of execution.
When it finally surfaced on March 8, 2024, state records offered no explanation for the delay. According to State Comptroller definitions, this “Transaction Approved/Filed Date” represents “the date the transaction was approved by the Comptroller’s Office or the date that a State authority contract was filed with the Office of the State Comptroller.”
Public records show no amendment authorizing payments during the gap. No emergency extension. Just a contract approved/filed well after it had expired—a contract that had generated zero payments since its February 2023 inception.
What work, if any, Davis Polk performed during this period remains unclear from available records. What’s certain is that no payments were authorized or made.
The Money Flows
From Zero to $483K—Only After William Joins
April 30, 2024.
After fourteen months without any payments, the Attorney General’s office finally issued its first payment to Davis Polk. The amount: $231,644—four months after William Hochul joined Davis Polk.
This was just the beginning. Over the following months, payments continued to flow, bringing the grand total to $483,404 from the Attorney General’s office.
The firm that had received no payments from the Attorney General’s office for over a year was suddenly receiving substantial funds from that office. James was establishing a financial relationship that benefited the Governor’s family.
Additional State Relationships
During this same period, Davis Polk was expanding relationships with other state agencies. The State Comptroller’s office began paying Davis Polk for “POL – Defense Counsel” services—$235,717 total starting in June 2024. However, the Comptroller is an independently elected official with no reporting relationship to the Attorney General, making any coordination between these agencies unlikely.
The Investigation Begins
While taxpayer money flowed to her husband’s firm, trouble was brewing for Letitia James.
In August 2023, James had signed a document under penalty of perjury declaring her intent to make a Virginia property her “principal residence.” Weeks later, she was prosecuting Donald Trump in Manhattan for financial misrepresentations.
December 2024: The Reporting Begins
On December 17, 2024, our investigative reporting began questioning James’s campaign spending, New York financial disclosures, and mortgages on her properties. The investigation would soon uncover a pattern of financial misrepresentations spanning decades.
March 2025: The Evidence Mounts
On March 18, 2025, journalist Joel Gilbert published an article showing James was not eligible for a HAMP modification on her Brooklyn property. The same day our investigation exposed handwritten modifications on mortgage documents—evidence suggesting retroactive changes to circumvent federal lending rules.
Our reporting revealed handwritten notes including “…not more than 6 residential units…” and “4 fam” that directly contradicted the property’s official five-family classification. These modifications, alongside mortgage instruments incorrectly describing the property as a “4 family” dwelling, suggested a pattern of misrepresentation spanning over two decades. One notation (“By assignment dated 8/23/11 – to be recorded simultaneously herewith”) indicated mortgage changes were being made retroactively.
The reporting revealed that James had consistently misrepresented her Brooklyn brownstone’s unit count for over two decades. While the property’s Certificate of Occupancy clearly designates it as a five-family dwelling, James repeatedly described it as having only four units on mortgage applications and city permit filings. This misrepresentation allowed her to qualify for residential loan terms and federal programs unavailable to commercial properties with five or more units.
April 2025: The Residency Fraud
On April 1, 2025, our investigation exposed the Virginia residency declaration—revealing James’s false “principal residence” claim that could have automatically vacated her position as New York Attorney General.
These articles led to federal action. On April 14, 2025, the Federal Housing Finance Agency delivered a criminal referral to the U.S. Department of Justice. The allegation: James had falsified “bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms.”
The stakes were rising.
The Official Defense Campaign
James Signs, Davis Polk Collects
Four days after the criminal referral, James began using official government resources to defend against personal criminal allegations.
On April 18, 2025, the New York State Attorney General’s official social media account posted that the accusations were “baseless” and represented “retaliation” for actions against Donald Trump. The post stated: “Donald Trump’s weaponization of the federal government continues to careen out of control – and now they are using cherry-picked information to attack the Attorney General.”
Her office also selectively shared portions of loan application documents with the press while omitting contradictory evidence—the very Power of Attorney containing her false occupancy declaration.
But James’s public statements went beyond simple denials. In defending against the Virginia property allegations, she made demonstrably false claims about key evidence and federal law. She told reporters she signed the Power of Attorney “electronically,” yet the document clearly bears her handwritten signature and was notarized in person with two live witnesses. She characterized the sworn declaration as being “at the bottom” of the page when it appears prominently.
Most significantly, she claimed the Power of Attorney “was not a basis for the mortgage,” demonstrating either stunning incompetence or deliberate deception about federal criminal law. Under 18 U.S.C. § 1014, it’s irrelevant whether a false statement was the “basis” for loan approval—the law criminalizes any false statement capable of influencing a financial institution. A sworn Power of Attorney declaring intent to occupy as principal residence is absolutely capable of influencing loan compliance audits, quality control reviews, investor requirements, and future enforcement actions. Moreover, the Power of Attorney was filed with the mortgage as part of the official loan package, making it directly part of the federal financial transaction.
The false declaration was witnessed by two employees from James’s own Attorney General’s office: Jennifer Levy, the First Deputy Attorney General who played a key role in the Trump fraud case, and Sharona Parchment, another staff member from the AG’s office. Both provided their New York home addresses and signed under penalty of perjury that they witnessed James sign the Power of Attorney containing her false principal residence declaration.
As federal scrutiny intensified following the FHFA criminal referral and reports of escalating federal investigations, James retained Abbe Lowell—one of the nation’s most prominent white-collar defense attorneys—to handle her personal criminal defense. Lowell’s firm, Lowell & Company, operates independently from the Davis Polk relationship.
The Legislative Shield
May 8, 2025.
As The Guardian reported that morning that a federal grand jury had been impaneled in Virginia to investigate James, and the NY Post revealed FBI investigations in the Northern District of New York, Governor Hochul’s $254 billion budget was finally passing—over a month late. Deep within its pages was a provision authorizing up to $10 million for legal defense of state employees facing “discriminatory or retaliatory treatment” from federal investigators.
The same day federal investigations escalated across multiple jurisdictions, the taxpayer-funded shield became operational.
State Senator Andrew Lanza called it “the height of hypocrisy.” Taxpayers would fund “private attorneys to defend public officials against charges of crimes that they committed having nothing to do with their elected position.”
Deputy Senate Majority Leader Michael Gianaris defended the provision: “The legal system, the prosecutorial system, investigative bodies of government are being used to target political enemies.”
The budget passed. The shield was operational. Federal investigations were escalating.
One day later, sources confirmed the FBI had formally opened its criminal investigation into James.
The Public Counter-Attack
Twelve days after the FBI investigation was confirmed, Hochul joined the public defense campaign.
Standing before reporters on May 21, 2025, the Governor attacked the Justice Department. When asked if investigations into New York Democrats were politically motivated, her response was immediate: “Hell, yeah.”
“The question is when will [U.S. Attorney General Pam Bondi] stop politicizing the Department of Justice and just do their jobs?” Hochul declared. “I suggest [the DOJ] focus on the core mission and stop targeting Democrats here in New York.”
The institutional defense was complete: financial protection, legislative shield, official messaging campaign, and public political cover all aligned.
What the Numbers Reveal
From October 2021 through December 31, 2024: Davis Polk collected $7.12 million from the Legislature and Assembly before William joined the firm.
The firm’s financial relationship with the Attorney General’s office: Payments began only after the Governor’s husband joined.
Total payments to Davis Polk after William joined: $483,404 from AG office that James controlled.
Time between federal investigations escalating and defense fund passage: Same day.
William Hochul’s 2024 compensation: $949,946.
The Firewall Question
In Governor Hochul’s 2024 financial disclosure, the arrangement is described this way: “Mr. Hochul advises and represents clients in white collar defense and investigations but does not appear or practice before New York state agencies. Davis Polk represents clients before state agencies but Mr. Hochul does not participate in these matters.”
But this official assurance raises more questions than it answers.
Public records show no external audit confirming this separation. No ethics opinion documents the arrangement. No independent monitoring ensures compliance.
While James has retained private criminal defense counsel, the Attorney General’s office continues paying Davis Polk hundreds of thousands in taxpayer funds for legal services. Most importantly, when James uses official Attorney General resources—staff, social media accounts, press statements—to respond to personal criminal allegations, while simultaneously directing taxpayer funds to a firm specializing in exactly this type of criminal defense, the distinction between “official” and “personal” legal strategy becomes blurred.
Who ensures that taxpayer-funded legal services remain separate from criminal defense strategy? What mechanisms prevent the sophisticated legal framing visible in James’s public statements from originating with taxpayer-funded counsel?
Only assurances exist—self-reported and unverified.
The Pattern
This investigation reveals a documented sequence: expired contracts approved/filed late, payments flowing after key personnel changes, legislative shields deployed on the same day federal investigations escalate across multiple jurisdictions, official resources used for personal defense, and public attacks on federal law enforcement.
More troubling is the apparent reciprocal exchange of taxpayer-funded favors: James directed $483,404 to the Governor’s husband’s firm over the previous year, then Hochul secured a $10 million shield for James’s criminal defense when federal prosecutors came calling. The timing suggests coordination, and the funding source—taxpayers—raises the appearance of corruption.
Whether this represents coincidence, coordination, or something more deliberate remains for others to determine.
What’s clear from the public record is that when federal investigators focused on Attorney General James, what appears to be a sophisticated system of mutual benefit was already operational—one where James had established financial benefits for the Governor’s family over the previous year, and the Governor reciprocated with taxpayer-funded protection for James’s criminal defense when she needed it most.
New Yorkers deserve transparency in government contracts worth hundreds of thousands of taxpayer dollars. They deserve to know when officials’ families profit from state business. They deserve leaders who maintain clear boundaries between official duties and personal legal troubles.
If this is what power looks like in plain sight—coordinated financial benefits, legal shields, and selective enforcement—what else remains hidden behind redactions and expired contracts?
The federal investigation will determine individual culpability.
The public record has already revealed the system.
This investigation is based on publicly available records from the New York State Comptroller’s Office, state contract databases, ethics filings, federal criminal referrals, and legislative proceedings.
🔗 This investigation continues my ongoing series: The Letitia James Mortgage Investigation
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Written by,
Sam Antar
© 2025 Sam Antar. All rights reserved.