President Donald Trump has escalated his attacks on California Democratic Sen. Adam Schiff, insisting on his imprisonment for alleged mortgage fraud.
In a Truth Social post on Sunday night, the president accused Schiff of fabricating loan paperwork, claiming the senator was in “BIG TROUBLE” and should “pay the price of prison.”
Trump and Schiff have had a tense relationship since the former’s first administration, and Schiff has been a vocal opponent of the president. While in the House of Representatives, Schiff was in the forefront of investigations into Russian interference in the 2016 presidential election. He also played a significant part in the president’s first impeachment in 2019.
Trump’s call for Schiff to be imprisoned is part of a larger pattern in which the president uses his position and influence to pursue political opponents, particularly those involved in previous investigations against him.
Trump escalated his attacks on Schiff last week, alleging in a July 15 Truth Social post that the Democrat had engaged in a “sustained pattern of possible mortgage fraud,” which the president claimed had been discovered by the Federal National Mortgage Association’s Financial Crimes Division, also known as Fannie Mae.
The president accused Schiff of falsely claiming a Maryland home as his principal address to qualify for a cheaper mortgage interest rate.
Schiff’s spokesman told the Los Angeles Times that the senator followed legal advice and was open about moving between two houses, one in his home state of California and the other near where he works in Washington, DC.
A Fannie Mae report acquired by the outlet did not accuse Schiff of mortgage fraud or any other crimes, but it did notice “a sustained pattern of possible occupancy misrepresentation” over which property he and his wife identified as their principal address on loan records.
The type of mortgage fraud case involving Schiff is typically straightforward and difficult to defend against, according to financial crimes experts, who warn the senator could face substantial fines and penalties.
Schiff has been referred to the Justice Department for prosecution over allegations that he falsely claimed “primary” residence status in two different states to gain financial benefits.
Schiff is accused of submitting falsified bank and property documents, designating a home he owns with his wife in Potomac, Maryland, as their primary residence—an action that lowered their mortgage payments from 2013 to 2019.
However, as a U.S. Senator from California—and previously a Representative for a California district—his legal primary residence must be in that state.
Despite this, Schiff also claimed a property in Burbank, Calif., as his primary residence during the same period, securing a tax exemption that saved him approximately $7,000.
Borrowers can secure lower mortgage rates by designating a property as their primary residence rather than a secondary home or investment property, as lenders view primary residences as less risky, the Times explained.
Mortgage fraud cases are commonly prosecuted by the Justice Department but seldom make it to trial, according to Keith Gross, a Florida defense attorney who specializes in criminal cases, the Times reported.
He noted that such cases are typically resolved through plea deals, as they often rely on clear-cut financial records that leave little room for dispute.
If charges are brought against Schiff, the case will likely center on whether he personally signed the documents and whether he actually lived full-time in the Maryland home.
“If the answers to those questions are undisputed, there is nothing to have a trial about,” Gross told the outlet. “Often, you just see some sort of payment included as part of a plea deal, so there would probably be a fine, there would be restitution, there may be some other sanctions.”
In a Truth Social post this week, Trump called Schiff a “scam artist” and claimed he obtained a mortgage for a Maryland home in 2009 but only designated it as a second home in 2020 as part of a ruse to get better rates and terms from the company, which has been in federal conservatorship since the 2008 financial crisis.
The president stated that Fannie Mae’s Financial Crimes Division had discovered the suspected wrongdoing.
“I have always suspected Shifty Adam Schiff was a scam artist. 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,” Trump wrote in part.
“Mortgage Fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice,” Trump added.
