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New York Attorney General Faces Scrutiny Over Use of Taxpayer Funds in Trump Case as Sean 'Diddy' Combs Trial Commences

  • Letitia James, the top legal officer in New York, is under a federal criminal investigation regarding alleged mortgage fraud tied to her Virginia residence, even as she continues her ongoing lawsuit against Donald Trump as of May 2025.
  • The investigation follows a referral by the Federal Housing Finance Agency and accusations that James misrepresented her primary residence to obtain favorable loans despite her official New York residency requirement.
  • James launched a high-profile civil fraud case in 2022 against Trump and his company alleging inflated real estate values, which ended in a $454 million judgment while critics now scrutinize her own legal conduct.
  • Business and legal groups warn James’ FAIR Business Practices Act, announced in March 2025, may expose small businesses to frivolous lawsuits due to vague definitions and reduced legal safeguards.
  • The unfolding investigations and legislative backlash suggest significant political and legal challenges for James, potentially threatening her career and influencing New York’s consumer protection landscape.
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theamericantribune.com broke the news in on Monday, May 12, 2025.
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