Schiff Facing Stiff Fines, Other Penalties In Mortgage Fraud Probe
The mortgage fraud case involving Senator Adam Schiff is generally considered to be clear-cut and challenging to defend against, as stated by financial crime specialists, who caution that the senator may incur significant fines and penalties.
The California Democrat has been referred to the Justice Department for potential prosecution due to allegations that he inaccurately asserted “primary” residence status in two separate states to obtain financial advantages.
Schiff is alleged to have submitted forged bank and property documents, identifying a residence he shares with his wife in Potomac, Maryland, as their primary home—an act that reduced their mortgage payments from 2013 to 2019, according to the Washington Times.
Nevertheless, as a U.S. Senator representing California—and formerly a Representative for a district in California—his legal primary residence is required to be in that state.
In spite of this, Schiff also claimed a property in Burbank, California, as his primary residence during the same timeframe, which allowed him to secure a tax exemption that saved him around $7,000.
Borrowers can obtain lower mortgage rates by designating a property as their primary residence instead of a secondary home or investment property, as lenders perceive primary residences to be less risky, as explained by the Times.
These allegations represent a significant shift in circumstances for Schiff, who has been a prominent critic of President Trump and has led efforts for his prosecution over business fraud.
Last year, Schiff accused Republicans of forsaking their principles to support Trump, who was subsequently convicted on 34 counts of business fraud in New York, charges that numerous legal experts have characterized as unfounded and politically motivated by Democratic state Attorney General Letitia James.
“The party, once known for its moral majority, is now, I suppose, attempting to create some form of immoral majority to reinstate Donald Trump as president,” Schiff remarked at that time.
Schiff has refuted the allegations, asserting that the lenders for his properties in California and Maryland were “fully aware” of his continuous use of both residences and that neither was intended as a vacation home.
However, in spite of these assertions, Schiff has emerged as one of the most outspoken lawmakers accusing Trump of engaging in business fraud.
“He has accused me of treason, he has also accused me of leaking classified information, he has accused me of fraud; it has essentially been a series of unfounded claims — all baseless, all lacking merit,” Schiff remarked about the president last week, according to the Times. “This is not new. Yet, his assaults on the rule of law are more perilous than ever.”
Mortgage fraud cases are frequently prosecuted by the Justice Department, but they rarely proceed to trial, as noted by Keith Gross, a Florida defense attorney specializing in criminal law, as reported by the Times.
He pointed out that such cases are usually settled through plea agreements, as they often depend on straightforward financial documentation that leaves little room for contention.
Should charges be filed against Schiff, the case will likely focus on whether he personally signed the relevant documents and whether he genuinely resided full-time in the Maryland property.
“If the responses to those inquiries are undisputed, there is no basis for a trial,” Gross informed the outlet. “Typically, you will see some form of payment included as part of a plea agreement, which would likely involve a fine, restitution, and possibly other penalties.”
In a post on Truth Social this week, Trump labeled Schiff a “scam artist” and alleged that he secured a mortgage for a Maryland residence in 2009 but only classified it as a second home in 2020 as part of a scheme to obtain more favorable rates and terms from the lender, which has been under federal conservatorship since the financial crisis of 2008.
The president indicated that Fannie Mae’s Financial Crimes Division had uncovered the alleged misconduct.
“I have long harbored suspicions that Shifty Adam Schiff is a con artist. Now, I have come to understand that Fannie Mae’s Financial Crimes Division has determined that Adam Schiff has participated in a continuous pattern of potential Mortgage Fraud,” Trump stated in part.
“Mortgage Fraud is an extremely serious matter, and CROOKED Adam Schiff (currently a Senator) must be held accountable for his actions,” Trump further remarked.