New York Attorney General Letitia James is under federal investigation for alleged property-related misconduct, according to sources familiar with the case.

The FBI and the U.S. Attorney’s Office are reportedly reviewing documents connected to multiple real estate transactions involving James.

The inquiry began after allegations surfaced that James may have provided false information on federal forms to obtain favorable loan terms. Specifically, investigators are examining a 2023 home purchase in Virginia, which raised questions about her legal residency. As a state official, James is required to maintain primary residence in New York.

Federal Housing Finance Agency Director William Pulte raised concerns about the Virginia home in a letter, questioning how James could be meeting her residency obligations if she primarily resided out of state. Reporters later visited the Virginia property and were asked to leave by a woman who declined to comment on James’ connection to the residence.

Additional claims allege James misrepresented details about a Brooklyn brownstone she purchased in 2001, including understating the number of residential units. This could have allowed her to avoid compliance with housing safety regulations, such as fire alarm installations.

In response to the investigation, New York lawmakers recently included a $10 million provision in the state budget to cover legal defense costs for state officials facing federal legal action.

While the measure was presented as a general safeguard, its timing has drawn attention amid the scrutiny surrounding James.

The investigation remains ongoing, and no charges have been filed. However, the situation has drawn national attention due to James’ high-profile role in past legal actions. Federal authorities have yet to comment publicly on the scope or potential outcome of the probe.