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DOJ Opens Probe into Handling of Mortgage-Fraud Inquiries Involving Adam Schiff and Letitia James

DOJ review launched: The Justice Department is investigating whether people impersonated federal officials during mortgage-fraud inquiries tied to Sen. Adam Schiff and NY Attorney General Letitia James.

Scope: The probe, led by the Maryland U.S. Attorney’s Office and the FHFA inspector general, also examines whether grand-jury materials in the James case were improperly shared.

Key figures: Witness Christine Bish was subpoenaed about communications referencing Bill Pulte and Ed Martin; prosecutors have been cautious about charges against Schiff, and James has pleaded not guilty.

DOJ Opens Probe into Handling of Mortgage-Fraud Inquiries Involving Adam Schiff and Letitia James

The Justice Department has launched an internal review to determine whether individuals impersonated federal officials during mortgage-fraud inquiries that targeted prominent Democrats, including Senator Adam Schiff and New York Attorney General Letitia James. The review is being led by the U.S. Attorney’s Office for the District of Maryland in coordination with the Federal Housing Finance Agency (FHFA) inspector general's office.

What investigators are examining

Officials are scrutinizing how the mortgage investigations were handled and whether any grand-jury materials in the James matter were improperly shared with people who were not authorized to see them. Sources familiar with the inquiry say the review also seeks to determine whether anyone falsely claimed to represent or work under FHFA Director Bill Pulte, Justice Department official Ed Martin, or their offices.

Witness testimony and subpoenas

One witness, Republican activist Christine Bish of California, traveled to the federal courthouse in Greenbelt, Maryland, after receiving a grand-jury subpoena. Bish told investigators she was questioned about communications with people who had claimed to be working with Pulte or other officials involved in the mortgage probes.

“They’re investigating each other,” Bish said. “It’s stupid.”

The subpoena required Bish to turn over any communications with “any person or persons claiming to be” working under FHFA Director Bill Pulte, the Justice Department official Ed Martin, or anyone “claiming to be acting at the direction or request” of those offices.

Roles of Bill Pulte and Ed Martin

Bill Pulte has played a prominent role in prompting mortgage-related inquiries into several Democrats by publicly making criminal referrals to the Justice Department—a step that is typically handled internally through agency investigators. Ed Martin has publicly promoted his pursuit of political figures aligned with former President Donald Trump. Investigators are reviewing whether those public actions and external contacts affected how the cases were developed or handled.

Where the cases stand

Prosecutors in Maryland have reportedly been cautious about moving forward with charges against Senator Schiff; Schiff has denied wrongdoing and has not been charged. Attorney General Letitia James has pleaded not guilty to fraud charges, and prosecutors are probing whether grand-jury material in her case was shared improperly.

Bish has said she provided information to Pulte’s office earlier this year after being contacted by someone claiming to be associated with that office. She also described speaking once with an individual who said he was affiliated with Freddie Mac.

Investigators asked Bish whether she had communicated directly with Director Pulte or Ed Martin; she said she has never spoken with Martin. Bish told investigators she expected to give testimony focused on mortgage concerns involving Schiff but said questioning repeatedly circled to her contacts with Pulte and Martin.

The Justice Department and FHFA inspector general’s office declined to comment. Representatives for the officials named in the probe did not immediately respond to requests for comment.

Contributing reporters: Evan Perez and Kara Scannell.

DOJ Opens Probe into Handling of Mortgage-Fraud Inquiries Involving Adam Schiff and Letitia James - CRBC News