New York Attorney General Letitia James is facing renewed legal scrutiny after a conservative legal watchdog filed an ethics complaint with the New York State Unified Court System.
The complaint follows a criminal referral to the U.S. Department of Justice alleging that James committed mortgage fraud related to property holdings in Brooklyn, New York, and Norfolk, Virginia.
The allegations stem from an April 15 letter submitted by Federal Housing Finance Agency Director William Pulte to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche.
Pulte’s letter accuses James of making material misrepresentations in mortgage applications, including misstating the number of residential units in a Brooklyn property to obtain favorable mortgage terms, and “falsifying records” in connection with her Norfolk home.
In response, America First Legal (AFL), a conservative legal organization with close ties to former President Donald Trump, filed a complaint with the Committee on Professional Standards for the Albany region of the New York State Bar, demanding an investigation into possible violations of the New York Rules of Professional Conduct.
“Ms. James has repeatedly traded in her integrity for a monetary benefit through deceiving lenders and the public in pursuit of personal enrichment,” wrote AFL’s Nicholas Barry, senior litigation counsel. “Her actions harm the rule of law and bring disrepute to the profession.”

Barry emphasized that the allegations—if substantiated—should disqualify James from continuing to serve as a licensed attorney in New York. The complaint further accuses James of violating Rule 8.4(c) of the New York Rules of Professional Conduct, which prohibits conduct involving dishonesty, fraud, deceit, or misrepresentation.
In particular, Pulte’s referral claims that James listed a five-unit building as a four-unit dwelling in both building permits and mortgage documents, allowing her to potentially secure a reduced interest rate and benefit from federal mortgage relief programs designed for smaller residential properties. The discrepancy may have resulted in financial gains through improper loan qualification under the Home Assistance Modification Program.
James has denied any wrongdoing, labeling the allegations as politically motivated retaliation tied to her numerous high-profile legal actions against Donald Trump and his associates. Speaking to NY1 on April 17, James said:
“I will not be silenced. I will not be bullied. I will not bend. I will not break. And I will not bow to anyone. No one is above the law, including the president of these United States.”
James stated that she would respond to the allegations “at the appropriate time and in the appropriate way,” dismissing the referral and complaint as part of a coordinated attack to undermine her office.
The complaint arrives just days after Trump publicly called for James’s resignation via Truth Social, calling her a “totally corrupt politician” and blaming her for legal actions taken against him in New York.
Legal observers note that while the DOJ has not initiated any formal investigation or charges, the combination of a criminal referral and an ethics complaint raises the stakes for the state’s top prosecutor. If the New York disciplinary committee determines the complaint has merit, James could face professional sanctions, including censure, suspension, or even disbarment.
America First Legal Vice President Dan Epstein also weighed in:
“If Director Pulte’s claims are accurate, then New York has a sitting Attorney General who may have defrauded the federal government for personal benefit. Such conduct demands accountability.”
This latest development adds to the ongoing friction between James and conservative political figures, particularly those aligned with Trump, who have accused her of engaging in selective prosecution and using her office for partisan objectives.
Whether the allegations lead to formal disciplinary action remains to be seen. Under New York law, the state’s grievance committees operate independently and investigate attorney misconduct confidentially unless public discipline is ultimately imposed.