Letitia James, Adam Schiff Hardest Hit By New Bill Targeting Fraudsters

Two of the most controversial Democrats in the country—New York Attorney General Letitia James and California Senator Adam Schiff—are at the center of a new legislative effort by Sen. John Cornyn (R-TX) that seeks to crack down on financial fraud by public officials.

The legislation, formally titled the Law Enforcement Tools to Interdict Troubling Investments in Abodes—or LETITIA Act—is seen by many as a direct rebuke of James and Schiff, both of whom are under fire for allegedly misrepresenting information on mortgage and loan documents to obtain favorable terms.

The bill’s acronym isn’t subtle. It’s named after Letitia James, who is currently under Justice Department investigation for alleged mortgage fraud.

Earlier this year, Federal Housing Finance Director Bill Pulte referred James for criminal prosecution after uncovering what he said were false or misleading statements on official records. Among the allegations: James listed a property in Virginia as her primary residence while simultaneously claiming a Brooklyn multi-family property that was incorrectly recorded as having five units instead of four. One application even listed James as her deceased father’s spouse.

“This legislation would empower President Trump to hold crooked politicians like New York’s Letitia James accountable for defrauding their constituents, violating their oath of office, and breaking the law,” said Cornyn, according to Fox News. “I’m proud to lead my Republican colleagues in introducing it.”

🚨I am proud to introduce the LETITIA Act that will empower @POTUS & @AGPamBondi to hold CORRUPT public officials like @NewYorkStateAG Letitia James accountable for committing bank fraud, tax fraud, & loan or mortgage fraud.

In America, no one is above the law. 👀⬇️

— Senator John Cornyn (@JohnCornyn) August 4, 2025

While James has not commented publicly on the legislation, the controversy comes less than a year after she won a high-profile civil case against then-private citizen Donald Trump, making her a major figure in Democrat lawfare efforts against the current president.

Also in the crosshairs is Sen. Adam Schiff, who is facing similar allegations involving properties in Maryland and California. According to another letter sent to the DOJ by Pulte, Schiff allegedly manipulated paperwork to claim primary residency at both properties—a move that could provide more favorable loan terms.

Schiff’s team denied any wrongdoing and dismissed the accusations as politically motivated. “False allegations are a transparent attempt to punish a perceived political foe who is committed to holding Trump to account,” said Marisol Samayoa to Fox News, a spokesperson for the senator. She added that Schiff disclosed his ownership of both homes to lenders and consulted House counsel before proceeding with the arrangements, only claiming one homestead tax exemption worth about $70.

But critics say that whether intentional or not, the appearance of impropriety by public officials undermines trust in government—something Cornyn’s bill is designed to fix.

The LETITIA Act would create mandatory minimum sentences for public officials convicted of certain financial crimes. For bank fraud or mortgage and loan fraud, a first offense would trigger a minimum one-year sentence. Tax fraud would carry a minimum of six months. Repeat offenders would face even harsher penalties: five years for financial fraud and two years for tax crimes. The bill would also increase maximum sentences and fines.