Posted on 09/08/2025 6:57:15 AM PDT by Red Badger
[PHOTOS OF DOCS AT LINK.........................]
Guest post by Joel Gilbert
Letitia James’s New York State mortgage records indicate that she committed mortgage fraud on a $200,000 “Credit Line Mortgage” with Citizens Bank in 2021.
Like other mortgages, it requires a signed note, a mortgage document, and recording with the county clerk.
The mortgage document shows that James misrepresented her five-unit apartment building as a single-family dwelling.
This false claim allowed James to avoid significantly higher commercial loan closing costs and a higher interest rate.
In New York, the number of units in a property determines whether a loan qualifies as a residential mortgage with lower interest rates (1 to 4 family dwellings) or whether it’s a commercial/multifamily building mortgage with higher interest rates and closing costs (5 or more dwelling units).
The official Certificate of Occupancy for Letitia James’s building at 296 Lafayette Avenue in Brooklyn describes it as a “FIVE (5) FAMILY DWELLING.”
That designation is the one and only controlling legal authority for unit count.
Yet for two decades after buying the property in 2001, James refinanced multiple times while claiming the building had only four units.
This misrepresentation allowed James to qualify for lower residential interest rates she was not entitled to receive.
Even on her most recent refinancing on August 23, 2019, the mortgage document lists four units.
On June 21, 2021, Letitia James signed the $200,000 Credit Line Mortgage with Citizens Bank for a 25-year term. On the first page of the agreement, under “PROPERTY DATA,” the Property Type is listed as “DWELLING ONLY—1 FAMILY.”
This went far beyond James’s past misrepresentations, as she reduced the number to just one.
The reason for the overkill appears clear: commercial loan closing costs can be up to seven times higher than residential, and interest rates for commercial properties typically run 1 to 3 percentage points higher.
The Citizens mortgage document shows James’s “Fees and Taxes” were only $4,070, covering city and county taxes, a Tax Action Service Fee (TASF), and an MTA surcharge.
Had the property been correctly recorded as five dwelling units, James would have faced a commercial mortgage recording tax of roughly 2.8% of the loan amount, or about $5,600.
In addition, she would have been required to pay for a full commercial appraisal of around $5,000, title insurance, a survey, commercial underwriting, an origination fee, and legal costs.
Altogether, the closing costs would have landed in a range from $20,000 to $30,000, or 10 to 15% of the loan amount.
Under New York Penal Law Article 187, fraud involving a loan of more than $50,000 qualifies as Mortgage Fraud in the Second Degree (PL § 187.20), a Class C felony punishable by up to 15 years in prison.
However, because Citizens Bank is a federally insured FDIC institution, under 18 U.S.C. § 1014, James could see a potential sentence of up to 30 years in prison and heavy fines.
James may have previously been relying on statutes of limitations expirations to shield her.
In The Gateway Pundit in March 2025, I reported that James pretended to be married to her father in 1983 to qualify for a mortgage and that she obtained a US government HAMP loan in 2011 by falsely claiming her building had just 4 units.
For general nonviolent felony fraud, New York typically imposes a five-year statute of limitations. Under federal law (18 U.S.C. § 1014), making false statements to a bank/mortgage lender has a 10-year statute of limitations.
This means that Letita James’s 2021 Citizens Bank loan remains actionable until at least June 2026.
Whether or not Letitia James has repaid the $200,000 loan, and whether or not Citizens Bank suffered any damages, is irrelevant according to James’s own legal standards.
In her high-profile case against President Trump and the Trump Organization, Letitia James argued that fraud is unlawful even when it doesn’t produce a financial victim.
In court filings and statements, James emphasized that the key issue was the misrepresentation itself and that misconduct corrupted the marketplace and undermined the integrity of financial institutions.
The trial judge, Justice Arthur Engoron, explicitly agreed. In his rulings, he stated that whether banks lose money or are repaid is irrelevant under New York’s fraud statutes, and that fraud in business transactions does not require showing financial loss to a victim.
Letitia James’s hypocrisy is breathtaking. After Donald Trump’s fraud conviction, on February 16, 2024, James released a statement stating, “When powerful people cheat to get better loans, it comes at the expense of honest and hardworking people.
Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them.
There simply cannot be different rules for different people. Because no matter how big, rich, or powerful you think you are, no one is above the law.”
With this new revelation of her 2021 Credit Line Mortgage fraud against Citizens Bank, there is only one plausible action for Special Prosecutor Ed Martin: indict New York Attorney General Letitia James now for mortgage fraud, according to state and federal laws, and according to the prosecutorial standards that James herself laid out for him.
Read:
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Joel Gilbert is a Los Angeles-based film producer and president of Highway 61 Entertainment. He is the producer of the new film Roseanne Barr Is America. He is also the producer of: Dreams from My Real Father, The Trayvon Hoax, Trump: The Art of the Insult, and many other films on American politics and music icons. Gilbert is on Twitter: @JoelSGilbert.
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So mote it be!
But it won’t.
I’m not sure her thighs would fit through a cell door anyway
She’s nothing but a box-checker.
black
woman
committed multiple crimes
Gets off scot-free.
Sadly, if charges are brought in NT, there is ZERO chance a jury can be empaneled to mete out justice on a democrat. DC and NY are equally corrupt.
DC more so, mainly because of demographics, but in NYC there is a chance because of WHO she is not WHAT she is..........................
RE: FRAUD...
How many other crooks are doing these unlawful practices? She is just the tip of the iceberg.
My guess is close to 100%..................
The Boston City Councilor Tania Fernandes Anderson stole $13,000 and gets only one month in jail.
Seems these people in authority and trust should get increased punishment not decreased.
If a average civilian citizen stole $13,000 in taxpayer funds, they would get much more time.
I imagine if anything happens to Letitia James at all, it’ll be something like she’ll have to pay back the difference and that’s it.
She had Trump prosecuted for ‘fraud’ for his loans from banks that he paid back because she felt he got ‘sweetheart’ deals on rates because of the ‘property values’.
1. The combined WH lawyers, federal government, employees from the DOJ (resigned to work on this) and the State of NY worked on this.
2. The Judge, a fruit nut case who apparently never hear of the Constitution, gave his own opinions of the property values. He ignored real estate estimates even accepted by the lenders.
3. Trump actually paid off all of these investments, and the banks had no complaints.
4. NY, with it’s population of ‘good people’ put together a jury that convicted someone who followed the rules and did the right thing, because of ‘political issues’.
5. They fined Trump roughly 500 million for the above political indiscretions...
Now we find out that the ‘ring leader’ of the group of ‘get Trump’ broke the law. She submitted false statements for loans, and to avoid taxation. Yet, not a peep of discontent for the highest Lawyer in NY by the Residents of the state.
What does that say about NY, the Constitution and what NY think about it, or the ‘Justice System’ of NY. Karma is coming for NY, sadly it will strike hard.
“She had Trump prosecuted for ‘fraud’ for his loans from banks that he paid back because she felt he got ‘sweetheart’ deals on rates because of the ‘property values’.”
That’s how she KNEW SO MUCH ABOUT THE SUBJECT.............Caught in her own TRAP!...............
As the saying for liberals goes; If it wasn’t for double standards, they’d have no standards at all.
Or through the jail doors for that matter.
This is like the textbook definition of “democrat projection”.
She accuses Trump of over-inflating the value of his collateral (Mara-Lago), to get favorable interest rates on his loans. Meanwhile she understates her value on her property to get favorable rates on her loans.
And the irony is, the bankers that she says he “cheated” said, no we were fine with his loan and payback.
But in her case, she really did cheat the taxpayers of NYC.
Anybody else.... especially anybody else who is white and/or non-Democrat... would already be rotting in jail. I long for the day when Trump does a rabbit hat trick and removes that “Magic D” designation once and for all.
BTTT
Whatever. Politicians NEVER get what they deserve, especially not Leftists.
Lock her up.
How do these fraudulent loan applications make it past the bank’s underwriters?
Does the bank then sell these loans or hold them on their books?
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