Department of Justice Special Attorney Ed Martin was spotted in Brooklyn on Friday inspecting New York Attorney General Letitia “Tish” James’ multi-family brownstone, which is at the center of a federal mortgage fraud investigation, the New York Post reported.
Parallel Investigations Into James and Schiff
Martin’s visit came one week after Attorney General Pam Bondi appointed him to lead parallel probes into James and California Sen. Adam Schiff. Both Democrats are under scrutiny for allegedly falsifying property records to obtain favorable loan terms.
Brooklyn Property at the Center of Probe
James’ property, located at 296 Lafayette Avenue in Clinton Hill, is legally classified as a five-unit dwelling. But prosecutors allege she misrepresented it on mortgage applications, building permits, and government filings as a four-unit property.
That alleged misclassification gave her access to Fannie Mae and Freddie Mac loans, which only allow financing for properties with four or fewer units — granting lower down payments and more favorable interest rates.
When Martin inspected the site Friday afternoon, reporters observed one main doorbell at the building’s front entrance, and four additional doorbells at a side entrance labeled “1 Floor,” “2 Floor,” “3A,” and “3B.”
Confrontation With a Neighbor
Martin’s presence did not go unnoticed. A neighbor approached him and his colleague, questioning their motives.
“We know who lives here… You’re not here about the houses. You’re here because of who lives here,” the woman told him.
Martin replied vaguely: “I’m just happy to be on a block looking at houses. It’s an important house.”
The neighbor shot back: “It’s not. It’s just like every other tract house on this block.”
Alleged Misrepresentations
The investigation into James’ real estate dealings began in April, after Federal Housing Finance Agency Director Bill Pulte filed a criminal referral with DOJ.
Among the allegations:
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James misrepresented a Norfolk, Virginia home she purchased in 2023 as her “primary residence” while serving as New York AG.
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She listed her Brooklyn property as her “second residence.”
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Mortgage documents signed by James and her father allegedly listed them as “husband and wife” to meet lending requirements.
Both James and Schiff have denied wrongdoing.
DOJ’s Message: “Nobody Is Above the Law”
Martin has signaled the investigations will continue aggressively. “Bill Pulte and his FHFA team got this started with his criminal referral,” he said last week. “And as Tish James and Adam Schiff always say: ‘Nobody is above the law.’”
Special attorneys like Martin are empowered to lead grand jury investigations and prosecutions in sensitive, high-profile cases and can operate outside the districts where the cases originate.
