Trump Calls for Schiff To Be Jailed Over Mortgage Fraud: ‘Big Trouble’

Trump Calls for Schiff To Be Jailed Over Mortgage Fraud: ‘Big Trouble’

President Donald Trump has intensified his criticisms of California Democratic Senator Adam Schiff, demanding his incarceration for purported mortgage fraud.

In a post on Truth Social on Sunday evening, the president charged Schiff with fabricating loan documents, asserting that the senator was in “BIG TROUBLE” and should “face the consequences of imprisonment.”

Trump and Schiff have maintained a contentious relationship since the former’s initial term in office, with Schiff being a prominent adversary of the president. During his tenure in the House of Representatives, Schiff led investigations into Russian interference in the 2016 presidential election and played a crucial role in the president’s first impeachment in 2019.

The president’s demand for Schiff’s imprisonment reflects a broader trend in which he leverages his authority and influence to target political rivals, especially those who have participated in prior inquiries against him.

Last week, Trump heightened his attacks on Schiff, alleging in a July 15 Truth Social post that the Democrat had engaged in a “sustained pattern of possible mortgage fraud,” which he claimed had been uncovered by the Financial Crimes Division of the Federal National Mortgage Association, commonly referred to as Fannie Mae.

The president accused Schiff of inaccurately designating a Maryland residence as his primary address to secure a lower mortgage interest rate.

Schiff’s spokesperson informed the Los Angeles Times that the senator adhered to legal counsel and was transparent about residing between two homes, one in California and the other near his workplace in Washington, DC.

A report from Fannie Mae obtained by the publication did not implicate Schiff in mortgage fraud or any other criminal activities; however, it did observe “a sustained pattern of possible occupancy misrepresentation” regarding which property he and his wife listed as their primary address on loan documentation.

The mortgage fraud case involving Schiff is generally considered to be straightforward and challenging to defend against, as noted by financial crimes experts who caution that the senator may incur significant fines and penalties.

Schiff has been referred to the Justice Department for prosecution due to allegations that he falsely asserted “primary” residence status in two separate states to obtain financial advantages.

He is accused of submitting forged bank and property documents, identifying a home he shares with his wife in Potomac, Maryland, as their primary residence—an act that reduced their mortgage payments from 2013 to 2019.

However, 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.

Notwithstanding 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 resulted in savings of approximately $7,000.

According to the Times, borrowers can obtain lower mortgage rates by designating a property as their primary residence instead of a secondary home or investment property, since lenders perceive primary residences as less risky.

Mortgage fraud cases are frequently prosecuted by the Justice Department; however, they rarely proceed to trial, as reported by the Times, citing Keith Gross, a Florida defense attorney specializing in criminal law.

He pointed out that these cases are usually settled through plea agreements, given that they often depend on straightforward financial documentation that allows for minimal contention.

If charges are filed against Schiff, the case will likely focus on whether he personally signed the documents and if he truly resided full-time in the Maryland residence.

“If the responses to those inquiries are undisputed, there is no basis for a trial,” Gross informed the outlet. “Frequently, you observe some form of payment included as part of a plea agreement, so it is likely there would be a fine, restitution, and possibly other penalties.”

In a post on Truth Social this week, Trump referred to Schiff as a “scam artist” and asserted that he secured a mortgage for a Maryland property 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 always suspected Shifty Adam Schiff was a scam artist. And now I learn that Fannie Mae’s Financial Crimes Division has determined that Adam Schiff has participated in a continuous pattern of potential Mortgage Fraud,” Trump wrote in part.

“Mortgage Fraud is extremely serious, and CROOKED Adam Schiff (now a Senator) must be held accountable,” Trump concluded.

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