Three days after President Trump publicly accused Sen. Adam Schiff of committing mortgage fraud, an attorney for Schiff wrote privately to the Department of Justice that there was "no factual basis" for the claims — but "ample basis" to launch an investigation into Bill Pulte, the Trump administration official digging into the mortgage records of the president's most prominent political ...

Sen. Adam Schiff, D-Calif., speaks with the McClatchy California Editorial Board on May 23 in Fresno, California.

ERIC PAUL ZAMORA/Fresno Bee/TNS

Three days after President Trump publicly accused Sen. Adam Schiff of committing mortgage fraud, an attorney for Schiff wrote privately to the Department of Justice that there was "no factual basis" for the claims — but "ample basis" to launch an investigation into Bill Pulte, the Trump administration official digging into the mortgage records of the president's most prominent political opponents.

"We are disturbed by the highly irregular, partisan process that led to these baseless accusations; the purposeful, coordinated public disclosure of these materials containing confidential personal information, without regard to the security risks posed to the Senator and his family; and Mr. Pulte's role in this sordid effort," attorney Preet Bharara wrote in the July 18 letter reviewed by the Los Angeles Times.

The Federal Housing Finance Agency, where Pulte serves as director, did not respond to a request for comment Tuesday.

A Justice Department spokesperson said Atty. Gen. Pam Bondi has directed Ed Martin — a Trump loyalist and director of the department's "Weaponization Working Group" — to "commence a probe" into criminal referrals from the housing agency, and Martin "will make public statements regarding the matter when appropriate."

Trump previously nominated Martin — a Missouri lawyer and conservative activist with no prosecutorial experience — to serve as the U.S. attorney in Washington, D.C. However, Schiff, a member of the Senate Judiciary Committee, placed a hold on Martin's nomination, and it was ultimately withdrawn amid a lack of support from Republican senators.

Bharara outlined several reasons why he believed the president's allegations against Schiff are without merit, and attached a copy of a letter from Schiff to the mortgage lender on his home near Washington, D.C, that Bharara said proved Schiff had been "completely transparent" about listing both that home and a unit in his home district in Burbank as primary residences in mortgage documents.

Schiff's simultaneous designation of two different homes as primary residences was the basis for Trump's allegations and for Pulte's referral of the matter to the Justice Department for criminal review.

Bharara blasted Pulte as "a Presidential appointee who seems to have made it his mission to misuse the power of his office to manufacture allegations of criminal conduct against the President's perceived political adversaries," and advised top Justice Department officials to not become complicit in such a politically motivated campaign.

"You should decline Mr. Pulte's invitation to join his retaliatory harassment of Senator Schiff," Bharara wrote to Bondi and Deputy Atty. Gen. Todd Blanche. "Instead, Mr. Pulte's misuse of his position should be investigated by a nonpartisan Inspector General to determine whether Mr. Pulte's conduct should be referred to the Department of Justice for criminal investigation."

Democrats have questioned the legality of Pulte's probes into several of Trump's political opponents, including Schiff, who led a House impeachment of Trump; New York Atty. Gen. Letitia James, who has led investigations into and lawsuits against the president; and Lisa Cook, a Federal Reserve governor who has voted to maintain federal interest rates rather than reduce them as Trump has demanded.

Pulte has lodged different allegations against each, but at their core is the claim that they all misrepresented facts in mortgage documents to secure favorable tax or loan terms, including by listing more than one home as their primary residence at the same time.

Trump cited the claims against Cook as reason to remove her from the Federal Reserve Board of Governors, which she is challenging in court. Critics have condemned the move as a partisan attack designed to allow Trump to wrest control of the economy away from the independent Federal Reserve.

Pulte has downplayed or ignored reporting by ProPublica that several of Trump's own Cabinet members have made similar housing claims in mortgage and other financial paperwork, and reporting by Reuters that Pulte's father and stepmother have done so as well. Additional Reuters reporting on eight years of court data found that the federal government has only rarely brought criminal charges over misstatements about primary residence in mortgage records.

With Schiff, who is a former prosecutor, Trump alleged that he intentionally misled lenders about his primary residence being in Potomac, Md., rather than in California, in order to "get a cheaper mortgage and rip off America." Trump cited an investigation by the Fannie Mae "Financial Crimes Division" as his source.

A memorandum from Fannie Mae investigators to Pulte, previously reported by The Times, noted that investigators had been asked by the Federal Housing Finance Agency inspector general's office for loan files and "any related investigative or quality control documentation" for Schiff's homes.

Investigators said they had concluded that Schiff and his wife "engaged in a sustained pattern of possible occupancy misrepresentation" on their home loans between 2009 and 2020 by simultaneously identifying both the Potomac home and the Burbank unit as their primary residence. The investigators didn't say they had concluded a crime had been committed.

Schiff has publicly dismissed Trump's allegations as baseless, accusing the president of making mortgage fraud claims "his weapon of choice to attack people standing in his way and people standing up to him, like me." Bharara's letter outlined his defense in more detail.

Part of that defense was the letter Bharara said Schiff sent to his lender on his Maryland home, Quicken Loans, a copy of which was provided to the Justice Department and reviewed by The Times.

In that letter, which he sent during a 2010 refinancing, Schiff wrote that while California was his "principal legal residence" and where he paid taxes, he had been informed both by counsel for the lender and for the House Administration Committee that the Maryland home "may be considered a primary residence for insurance underwriting purposes" because members of his family lived in it for most of the year.

Bharara called the letter a "transparent disclosure" and "the antithesis of 'mortgage misrepresentation.'"

Schiff has previously said that neither of the homes were vacation or investment properties and were classified correctly, both in accordance with how they were used by his family and in consultation with House attorneys and his lenders.

Another part of Schiff's defense, Bharara wrote, was that even if he had committed fraud by making false statements in his mortgage filings — which Bharara said he did not — the 10-year statute of limitations for charging him has lapsed, as the "most recent mortgage application that Mr. Pulte even accuses of inaccuracy is more than twelve years old."

Bharara also laid out several reasons why he felt that Pulte's actions deserve to be investigated.

Bharara asserted that the Federal Housing Finance Agency inspector general appeared to have asked the Fannie Mae Financial Crimes Investigation Unit to delve into Schiff's mortgage records "at Mr. Pulte's behest," and that Pulte personally referred the matter to the Justice Department in May, before the Fannie Mae unit had even provided him with its findings.

He also wrote that the criminal referral was made public "as the President sought to distract from criticism related to (convicted sex offender) Jeffery Epstein."

Schiff's address was published as a result, which Bharara said presented a threat to the senator and forced him to take "extra security precautions." Schiff also has launched a legal defense fund to help him defend himself against the president's accusations.

Bharara, a former U.S. attorney in New York, described Pulte's actions as "highly irregular," and part of a "pattern" of him "misusing his office" to go after Trump's political opponents.

"Opening an investigation on these deficient facts, after this much time has passed, after such an irregular and suspect process, and when the President has repeatedly expressed his longtime desire to investigate and imprison Senator Schiff, would be a deeply partisan and unjust act, unworthy of the Department of Justice," Bharara wrote. "Instead, it is Mr. Pulte's conduct that should be investigated."

_____