The Department of Justice is likely digging into Sen. Adam Schiff's mortgage paperwork trail stretching back to a Maryland home purchase from the early 2000s as it weighs whether it has an airtight case to potentially prosecute the longtime political foe of President Donald Trump, according to a Cornell Law School professor.
"The one thing they don't want to do is to bring a case that fails," William Jacobson told Fox Digital in a Zoom interview, referring to the DOJ potentially investigating Schiff's alleged mortgage fraud. Jacobson is a clinical professor and the Director of the Securities Law Clinic at Cornell.
"Either it fails legally, or it fails in court. They don't want to lose that case if you're going against a major political opponent. And that's part of the calculation that will take place."
Jacobson talked about the ins and outs of the Democratic California senator's potential legal woes following the U.S. Federal Housing Finance Agency sending a letter to the DOJ this year claiming that Schiff falsified banking and property documents by listing two homes – on two separate coasts – as his primary residence out of an effort to allegedly get more favorable loans.
The DOJ has not yet said whether it would take up the case, but is likely digging into Schiff's paper trail as it weighs whether to move forward, Jacobson explained.
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"I would expect that the first thing the Department of Justice is going to do is to gather documents. There will be a paper trail here. There will be many things that are documentable, and not ‘he said, she said,’ as to where Adam Schiff was actually living," he said.
As investigators go through the documents, they will ask questions such as: What was his actual primary residence? What did he sign? Who was present when he signed? Did he have conversations with people about it?
The law professor, who founded the popular conservative legal blog Legal Insurrection, said that there will likely be a "significant paper trail" to go through due to the case stretching back more than 20 years and due to companies keeping tight records following the 2008 financial crash.
"Mortgage companies preserve all of these things because of the financial crisis and other things. They have to maintain these records. . . . And I would expect that that would be the first thing the Department of Justice would look at is the paper trail and the circumstantial evidence as to where Adam Schiff was, in fact, living," he continued, remarking that there are "no shrinking violets" at the Trump DOJ.
Schiff first fell under scrutiny this year in May, when the U.S. Federal Housing Finance Agency (FHFA) sent a letter to the Department of Justice sounding the alarm that, in "multiple instances," Schiff allegedly "falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003-2019 for a Potomac, Maryland-based property."
At the heart of the issue are two properties purchased by Schiff: a home purchased in 2003 in Potomac, Maryland, for $870,000 under a Fannie Mae-backed mortgage agreement for $610,000 at a rate of 5.625% over a term of 30 years, and a 2009 Burbank, Calif., condo. Schiff reaffirmed the Potomac property as his principal residence in mortgage refinancing paperwork in 2009, 2011, 2012, and 2013, according to the FHFA letter to the DOJ.
Over the same time frame, Schiff took a homeowner’s tax exemption on the Burbank condo while also claiming that home as his primary residence for a $7,000 reduction off of the 1% property tax, FHFA Director William Pulte wrote in the letter to the DOJ, citing media reports.
In 2023, the letter continued, a spokesperson for Schiff asserted that "Adam’s primary residence is Burbank, California, and will remain so when he wins the Senate seat."
FHFA is an independent federal agency that oversees Fannie Mae, Freddie Mac and the Federal Home Loan Bank System.
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In 2020, Schiff refinanced his mortgage, listing his Maryland home as his secondary residence.
Trump publicly slammed Schiff over his mortgages in July on Truth Social, accusing him of fraud and putting the issue back on the public's radar following 2023 news reports on Schiff's homes in Maryland and California.
"I have always suspected Shifty Adam Schiff was a scam artist," Trump posted to Truth Social Tuesday. "And now I learn that Fannie Mae’s Financial Crimes Division have concluded that Adam Schiff has engaged in a sustained pattern of possible Mortgage Fraud."
"Adam Schiff said that his primary residence was in MARYLAND to get a cheaper mortgage and rip off America, when he must LIVE in CALIFORNIA because he was a Congressman from CALIFORNIA. I always knew Adam Schiff was a Crook. The FRAUD began with the refinance of his Maryland property on February 6, 2009, and continued through multiple transactions until the Maryland property was correctly designated as a second home on October 13, 2020."
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Schiff has repeatedly denied and brushed off the accusations, including refusing to answer questions from Fox News Digital about his alleged mortgage fraud when confronted in the nation's capital on July 16.
"Since I led his first impeachment, Trump has repeatedly called for me to be arrested for treason. So in a way, I guess this is a bit of a letdown. And this baseless attempt at political retribution won’t stop me from holding him accountable. Not by a long shot," he posted to X in July following Trump's initial Truth Social attack on Schiff's mortgages.
"This is just Donald Trump’s latest attempt at political retaliation against his perceived enemies. So it is not a surprise, only how weak this false allegation turns out to be. And much as Trump may hope, this smear will not distract from his Epstein files problem," he added.
Schiff's primary residence discrepancies first hit the public's radar in 2023, when Schiff launched an ultimately successful campaign to serve in the Senate after decades in the U.S. House. CNN published the first news article detailing that Schiff had claimed the Maryland home as a primary residence while also taking a homeowner’s tax exemption on the Burbank condo.
The campaign said at the time that Schiff's two properties were listed as primary residences "for loan purposes because they are both occupied throughout the year and to distinguish them from a vacation property."
Trump and Schiff have long been political foes, which was underscored during Trump's first administration when Schiff served as the lead House manager during the first impeachment trial against Trump in 2020, and when Schiff repeatedly promoted claims that Trump's 2016 campaign colluded with Russia.
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Days after Trump first posted about Schiff's mortgages in Maryland and California, the president's Director of National Intelligence, Tulsi Gabbard, declassified documents that reportedly show "overwhelming evidence" that then-President Barack Obama and his national security team laid the groundwork for what would be the yearslong Trump–Russia collusion probe after Trump's election win against former Secretary of State Hillary Clinton in 2016.
Schiff was an incredibly vocal lawmaker amid the Russian collusion claims, most notably when the House censured him in 2023 over his promotion that Trump's 2016 campaign colluded with Russia. Schiff served in the House representing California from 2001 to 2024, when he was sworn-in as a senator after his successful 2024 campaign to serve in the nation's upper chamber.
Schiff served as the ranking member of the House intelligence committee from 2015 to 2019, before becoming the committee's chair from 2019 to 2023. In that role, he was kept up to date on classified materials surrounding the Russian collusion claims.
Trump also recently invoked Gabbard's alleged revelations while attacking Schiff over his mortgages in another Truth Social post.
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Trump went on to ominously warn during a White House event last week that Schiff has "a lot of other things far worse than" his mortgage inquiry.
"He defrauded banks and insurance companies and the federal government, but it's, very simple. It's mortgage loan fraud ... But he has a lot of other things far worse than that. So no Adam Schiff, they have him 100% on mortgage fraud," Trump said last Tuesday from the White House while hosting a meeting with Philippine President Ferdinand Marcos Jr.
Jacobson said that Democrats have boxed themselves out of attempting to claim that Trump is targeting a political foe over the mortgage criminal referral because the party had spent the last decade launching "lawfare" at Trump.
"One of the ironies here that I think everybody understands, is that Democrats launched a lawfare campaign against Donald Trump. And it didn't just start once he took office this year. It's been going on for a decade," he said.
"They have used every tool available to try to destroy him, including through criminal prosecutions, including through federal investigations. . . . They've really tried to get him. And for them now to say, 'oh, just because we did that to you for 10 years doesn't give you the right to do it to us.' Legally, that's sound. I mean, you have to prove your case in court. But politically, I don't think that's going to fly. Democrats screaming that Donald Trump is weaponizing prosecutors against them is not going to really impress a lot of people."
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Jacobson speculated that there will likely be more woes for Schiff in the coming days, but that potential legal cases hinge on prosecutors.
"We don't know where this is going ahead, of course, but it does appear that Adam Schiff is in the sights of Donald Trump. No surprise about that, because Donald Trump has been in the sights of Adam Schiff for a decade. So, I fully expect that there will be more here. The question is going to be really though, once it moves into the realm of prosecution, what are the prosecutors going to do?"
The Department of Justice declined comment when approached about potentially investigating and taking up the Schiff case. Schiff's office did not respond to Fox Digital's request for comment.
Fox News Digital's Danielle Wallace and Peter Doocy contributed to this report.