New York Attorney General Letitia James is soliciting major campaign donations just days after the Trump administration accused her of mortgage fraud involving multiple properties. The allegations have led to a criminal referral to the Department of Justice and could potentially result in charges.
James is hosting a high-end fundraiser this Tuesday, with entry-level tickets priced at $500 and maximum contributions reaching $18,000—the legal limit in New York—according to the New York Post. The official invitation to the event—promoted as a fundraiser for Letitia James’ 2026 re-election campaign—features a photo of the embattled attorney general alongside a gay pride flag. The fundraiser will be held at the residence of left-wing activists Rod Grozier and Rob Smith, the latter being the CEO and founder of the gender-neutral clothing brand “The Phluid Project.”
The high-dollar fundraiser comes just days after a Trump administration official submitted a criminal referral against James in a letter addressed to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche. James is accused of designating a Virginia property she purchased in 2023 as her “principal residence,” despite actively serving as New York’s attorney general at the time. As the New York Post pointed out, state law requires attorneys general to have lived in New York for at least five years prior to running and to maintain residency throughout their term.
A power of attorney document related to the Virginia purchase, reviewed by the outlet, was signed by James and appears to support the claim made by Federal Housing Finance Agency (FHFA) Director William Pulte. The document includes a statement declaring, “I intend to occupy this property as my principal residence.” The letter further revealed that James previously purchased a Brooklyn home in 2001, but has “consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” Pulte noted.
This would have allowed James to obtain a lower mortgage rate and result in reduced payments under the federal Home Affordable Modification Program (HAMP). “Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte wrote. The alleged criminal act took place just weeks before Letitia James launched her civil fraud trial against the Trump administration, which was accused of undervaluing multiple properties—ultimately leading to a $454 million judgment.
