New York AG Letitia James' Lawyers Say Fannie Mae Probe Found No 'Clear And Convincing Evidence' In Fraud Review: Report

The defense team of New York Attorney General Letitia James has reportedly presented internal communications from Fannie Mae on Monday, suggesting that the mortgage fraud case against her was not strong.

Doubts Raised Over Fraud Case Evidence

These communications suggest that the top fraud investigators at the government-controlled company did not find “clear and convincing evidence" against James, reported Politico.

According to the report, Sean Soward, Fannie Mae's director of mortgage fraud investigations, voiced doubts about the case against James during a conversation with the company's vice president of financial crimes.

The defense also argued that the communications suggest possible improper involvement by Bill Pulte, the Federal Housing Finance Agency‘s (FHFA) director, in the probe.

These revelations have led James’ defense team to request the dismissal of the charges, citing “outrageous government conduct” that infringes on her due-process rights, Politico reported.

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James' Indictment Spurs Political Debate

This development follows a series of events that have raised questions about the motives behind James’ indictment, with critics pointing to her history as a vocal opponent of President Donald Trump.

The Justice Department was reviewing a criminal referral alleging that James listed a Virginia property as her primary residence to receive more favorable loan terms. The FHFA had claimed that James "falsified bank documents and property records" to secure those benefits.

In October, James pleaded not guilty to one count of bank fraud and one count of making false statements to a financial institution, calling the indictment "baseless" and part of ongoing political retaliation, describing the charges as part of a “justice system which has been weaponized” against her.

This sentiment was echoed by Sen. Elizabeth Warren (D-Mass.), who accused Trump of “openly seeking revenge on his political opponents” following James’ indictment.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.