DOJ Investigates Senator Adam Schiff for Alleged Mortgage Fraud Amid Political Allegations

On August 11, 2025, U.S. Attorney General Pam Bondi appointed Ed Martin, a conservative activist and former interim U.S. attorney for Washington, D.C., as a special attorney to investigate mortgage fraud allegations against Senator Adam Schiff (D-Calif.) and New York Attorney General Letitia James. According to two administration officials speaking to NBC News, these investigations target two prominent Democratic opponents of President Donald Trump.

The allegations involve claims of false statements on mortgage loan applications. Bill Pulte, Director of the Federal Housing Finance Agency, sent a criminal referral for James in April 2025 and for Schiff in May 2025. These referrals prompted the Department of Justice to open investigations.

A senior law enforcement official stated that a grand jury seated in the Eastern District of Virginia will probe James’s alleged mortgage fraud, while a grand jury in Maryland will investigate the allegations against Schiff. The Justice Department is also in the initial stages of a separate investigation into whether James’s office violated Trump’s legal rights through its successful civil fraud case against him and his businesses. This second probe will also examine whether the rights of the National Rifle Association were violated by her civil suits.

Both Schiff and James have denied wrongdoing. Schiff’s attorney, Preet Bharara, described the allegations as “transparently false, stale, and long debunked.” In July 2025, Schiff publicly responded to Trump’s claims in a video statement, saying: “This is the kind of stuff you see tinpot dictators do. It is designed to intimidate his political opponents and somehow try to silence them.”

Trump has previously called for both Schiff and James to be prosecuted over these allegations. The investigations are being handled by separate grand juries and are in addition to the Justice Department’s review of James’s official conduct in her civil lawsuits.

Senator Adam Schiff (D-CA) is reportedly under criminal investigation by the U.S. Department of Justice (DOJ) for alleged mortgage fraud, as first reported by Fox News and corroborated by multiple sources. The inquiry centers on accusations that Schiff falsified bank and property records between 2003 and 2019 to obtain more favorable loan terms on a property in Potomac, Maryland. Federal Housing Finance Agency (FHFA) Director William Pulte referred the case to the DOJ, stating that "Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003–2019 for a Potomac, Maryland-based property."

Schiff is also alleged to have misclassified his Maryland home as his primary residence to benefit from lower mortgage rates while simultaneously claiming tax exemptions for a condo in Burbank, California. This dual claim has led to additional ethical questions concerning the appropriate use of tax exemptions and loan qualifications.

Schiff has denied all allegations, labeling them as a politically motivated attack and a "baseless attempt at political retribution." He suggests the investigation is the result of longstanding tensions with former President Donald Trump, who commented on the issue by stating, "Schiff said that his primary residence was in MARYLAND to get a cheaper mortgage and rip off America, when he must LIVE in CALIFORNIA because he was a Congressman from CALIFORNIA. I always knew Schiff was a Crook. He defrauded banks and insurance companies and the federal government, but it’s very simple. It’s mortgage loan fraud."

Legal experts have noted that most financial fraud statutes have a statute of limitations of 10 years, and Schiff's last alleged false statement dates to 2013, which may complicate potential prosecution. The DOJ has not offered any public comments on the ongoing investigation, and Schiff’s office has not released a statement.

In a series of recent public statements, former President Donald Trump has accused Senator Adam Schiff of mortgage fraud, labeling it as part of a longstanding political attack. Trump repeatedly called for Schiff to face jail time, linking the allegations to his criticism of Schiff and invoking past controversies such as the Russia collusion investigation. Schiff has denied the accusations, describing them as false claims and political retaliation. These allegations have been part of an ongoing conflict stretching back several years, highlighted in multiple media headlines, but no specific details, dates, or evidence regarding the mortgage fraud claims have been provided in the available content.

Former President Donald Trump publicly called for Congressman Adam Schiff to be "brought to justice" after a criminal referral by the United States Department of Justice (DOJ) related to alleged mortgage fraud. Trump intensified his criticism by posting on his social media platform TruthSocial, highlighting that Schiff maintains dual residency, with particular focus on his out-of-state home in California. Trump termed this as evidence of fraudulent activity, emphasizing a belief that Schiff's mortgage dealings warrant legal scrutiny. These accusations come amid escalating political tensions and represent a notable conflict between Trump and Schiff, who is a prominent Democrat representing California in the U.S. Congress. Trump's comments underscore ongoing attempts to challenge and discredit Schiff through legal and political pressure. However, specific details regarding the mortgage fraud allegations, such as amounts, dates, or precise locations of the properties involved, were not disclosed in the available information. The situation continues to develop as the DOJ's referral process advances, potentially leading to legal actions. Trump's statements imply significant consequences if formal charges proceed, as he demands accountability and legal consequences for Schiff based on the reported fraudulent mortgage activities.

In recent developments, former President Donald Trump has publicly accused California Congressman Adam Schiff of mortgage fraud, escalating political tensions. Trump, using his platform on TruthSocial, alleged that Schiff maintains a dual residency and is involved in a potential pattern of mortgage fraud. This accusation marks the second occasion where the Trump administration has referred a high-profile Democrat to prosecutors over similar allegations. The claims include scrutiny over Schiff's out-of-state homes and financial dealings related to mortgage practices. Trump demanded a criminal investigation and stated that Schiff "must be brought to justice." These allegations have ignited a wave of political discourse, highlighting ongoing conflicts between Trump and prominent Democratic figures. The situation unfolds amid broader political rivalry and may have implications for legal scrutiny and congressional reputation. No specific details were provided regarding the alleged fraudulent activities, timelines, or responses from Schiff or his representatives. The accusations come amid a highly charged political environment ahead of upcoming elections and have attracted considerable media attention. The article originates from The New York Sun Company, LLC in 2025, emphasizing the continued use of legal and political strategies in partisan confrontations.