Bill Pulte, the Trump administration’s former federal housing director, has asked prosecutors to open a new investigation into New York Attorney General Letitia James. The request alleges insurance fraud tied to mortgage applications, according to reports. Referrals were sent to prosecutors in Florida and Illinois, claiming James may have committed mortgage insurance fraud. The allegations involve applications made to Universal Property Insurance in Florida and Allstate in Illinois. A similar case in Virginia against James did not proceed after a judge ruled that the prosecutor, Lindsey Halligan, was unlawfully appointed. Prosecutors also failed twice to convince a grand jury to indict James on the same charges. Federal investigators are reportedly examining her financial transactions with her hairdresser, who faces bank fraud and identity theft charges in Louisiana. Letitia James is a known critic of Donald Trump. In 2024, her office won a $450 million civil judgment against Trump and his sons for fraud. A five-judge panel later overturned the financial penalties, but her office is appealing to have the penalty reinstated. The Trump administration has previously used the Justice Department to investigate political opponents, including former FBI Director James Comey, Federal Reserve Chair Jerome Powell, and Minnesota Governor Tim Walz. Critics say such investigations are politically motivated. James’s attorney, Abbe Lowell, said the allegations are driven by politics. He said Trump and his allies continue to pursue claims that judges and grand juries have rejected. “Frustrated by repeated failures, where judges and grand juries have rejected their attempts to charge Attorney General James, Trump and his political enablers keep abusing their power to pursue a vendetta against her by trying to rename, refile, and repeat baseless allegations,” Lowell said. The new referrals in Florida and Illinois are under review, but it remains uncertain whether prosecutors will pursue formal charges. Legal experts note that past failures in court could influence the outcome of these latest requests.