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Only in 2024—after the scandal began to unfold—did James suddenly reclassify the home as “real property” instead of an investment.
Her 2024 filing came just one month after Federal Housing Finance Agency Director William Pulte sent a criminal referral to the Department of Justice, suggesting that James may have committed mortgage fraud.
“It is unclear why James opted to change the word ‘investment’ to ‘real property’ on her 2024 disclosure,” prosecutors noted.
Hidden Income and Omitted Details
Despite the federal allegations that James rented out the property for income, she never reported rental revenue on her 2021 through 2024 financial disclosures.
In 2020, however, James acknowledged that an “investment real property” in Norfolk generated between $1,000 and $5,000 in income. Prosecutors say that number doesn’t align with what she actually earned in rent.
The indictment points out that James had signed a “Second Home Rider” as part of her loan agreement, which required her to “occupy and use the property as her secondary residence” and forbade her from renting or granting others control of the home.
“Despite these representations,” prosecutors wrote, the Norfolk property “was not occupied or used by James as a secondary residence and was instead used as a rental investment property.”
More Misrepresentations Uncovered
The allegations don’t stop there. Federal filings indicate that James lied on her homeowner’s insurance application, claiming the property would be “owner occupied.”
Even more damaging, her federal tax forms reportedly classify the same house as “rental real estate,” where she declared “thousand(s) of dollars in rents received” and claimed deductions for expenses related to the property.
To make matters worse, a New York Post reporter who visited the home in May said a longtime neighbor confirmed she had “never seen James there once.”
From Prosecutor to Defendant
Federal prosecutors say the evidence paints a damning picture of deception—one that mirrors the same accusations James hurled at Donald Trump.
A federal grand jury indicted her Thursday on two felony counts: bank fraud and making false claims to a financial institution.
If convicted, she faces up to 60 years in prison and a $2 million fine.
Her initial court appearance is scheduled for October 24.
The irony hasn’t gone unnoticed. Conservatives across the country are pointing out that the very prosecutor who accused Trump of inflating his assets now stands accused of misrepresenting her own.
The self-proclaimed crusader for “truth and transparency” may soon have to explain her own financial discrepancies—this time from the defendant’s table.
