AG Pam Bondi Taps Special Attorney In California Sen. Schiff, New York AG James Fraud Probe

Federal Housing Agency refers prominent Democrats for allegedly falsifying loan documents; Schiff’s lawyer calls investigation “brazenly partisan.”

A political firestorm is brewing as Florida Attorney General Pam Bondi has appointed Ed Martin as special attorney to investigate mortgage fraud allegations against two of the Democratic party’s biggest names: New York Attorney General Letitia James and California Senator Adam Schiff.

The move follows separate referrals from the Federal Housing Agency (FHFA) to the Department of Justice (DOJ), thrusting the high-profile politicians into a legal and political spotlight.

The FHFA first flagged James in April, referring her to the DOJ for allegedly falsifying mortgage documents to secure more favorable loan terms. A month later, FHFA Director Bill Pulte likewise referred Schiff for similar allegations concerning a property in Maryland.

The appointment of Ed Martin, who previously served as director of the DOJ’s Weaponization Working Group, has drawn immediate and fierce criticism. Preet Bharara, an attorney for Schiff, blasted the investigation as “the very definition of weaponization of the justice process.” Bharara pointed to Martin’s past, noting that his nomination for U.S. Attorney for the District of Columbia was derailed by his “partisanship and unfitness,” a nomination that Schiff himself had placed a hold on.

“Mr. Martin is a January 6-defending lawyer who has repeatedly pursued baseless and politically-motivated investigations to fulfill demands to investigate and prosecute perceived enemies,” Bharara stated, arguing that the bias in the appointment is “glaring.”

A spokesperson for Schiff had previously told CNN in 2023 that his properties in California and Maryland were both claimed as primary residences “for loan purposes because they are both occupied throughout the year and to distinguish them from a vacation property.” Bharara echoed this defense, calling the allegations “transparently false, stale, and long debunked.”

The scrutiny comes at a busy time for James, who on Friday was hit with new subpoenas in New York related to her civil fraud cases against President Donald Trump and the National Rifle Association.

As the investigations get underway, the political battle lines are being drawn, with one side decrying a politically motivated attack and the other vowing to get to the bottom of serious allegations. The naming of a special attorney ensures that this story will continue to dominate headlines, with the outcome potentially having far-reaching implications for all involved.

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