According to reports, the Federal Housing Finance Agency (FHFA) recently submitted a referral to the U.S. Department of Justice regarding possible mortgage fraud involving James. The FHFA claims James may have misrepresented her residency status in order to obtain a federally backed mortgage for the property, a move that could potentially violate legal and ethical standards.

The situation has drawn attention due to the timing of the alleged activity, which reportedly took place in late August 2023—shortly before James began a civil trial against the Trump Organization. That case eventually led to a substantial judgment against the company.

Adding to the controversy, the nonprofit watchdog group America First Legal filed an official ethics complaint with the New York State Unified Court System’s Committee on Professional Standards. The complaint argues that James may have violated the