The legal battle between allies of Donald Trump and Letitia James has taken another turn, with fresh criminal referrals filed to revive previously stalled allegations.
Bill Pulte, who heads the Federal Housing Finance Agency, has submitted two referrals to the US Department of Justice. The cases have been directed to federal prosecutors in Illinois and Florida, both centred on claims of possible homeowners’ insurance fraud.
According to the allegations, James may have provided misleading information in insurance applications tied to properties in Virginia and Florida, involving companies such as Allstate and Universal Property Insurance. The referrals reportedly draw, in part, on claims circulated online by Trump ally Mike Davis.
The Justice Department has confirmed receiving the referrals but has not indicated whether any action will be taken.
James’ lawyer, Abbe Lowell, strongly pushed back, accusing the administration of pursuing a politically motivated campaign rather than focusing on national issues. He argued that similar efforts had already failed in court and described the latest move as a continuation of those attempts.
The development echoes an earlier federal case filed in Virginia, where James faced fraud-related charges in 2025. She denied the allegations, and the case was eventually dismissed after a judge ruled that the prosecutor’s appointment was invalid.
While the new referrals could open the door to fresh investigations in different jurisdictions, it remains unclear whether prosecutors will move forward or if the case will face the same hurdles as before.
