Senator Schiff Under Scrutiny in Mortgage Fraud Investigation; Faces Potential Fines
Legal experts in financial crimes say that the case involving Senator Adam Schiff is relatively straightforward and could prove difficult to contest. If found liable, the California Democrat may be subject to hefty fines and additional penalties.
According to allegations referred to the Department of Justice, Schiff claimed to have “primary” residence status in both California and Maryland simultaneously—an apparent contradiction that may have given him financial benefits he wasn’t entitled to.
Reports indicate Schiff and his wife identified their Maryland home as their primary residence from 2013 to 2019, allowing them to secure lower mortgage rates. This was allegedly done using misleading or falsified documents. However, as a federal lawmaker representing California, Schiff’s legal primary residence should have been in that state.
Despite this, Schiff also received a tax break for a property in Burbank, California, during the same time frame—saving him about $7,000 by claiming that home as his main residence as well.
Lenders often offer better terms for primary residences compared to second homes or investment properties, based on the assumption that borrowers are less likely to default on a home they actually live in.
These allegations come at a politically sensitive time for Schiff, who has been one of former President Trump’s most vocal critics and was a key figure in efforts to hold Trump accountable for alleged business misconduct.
Just last year, Schiff accused Republicans of compromising their values in their defense of Trump, who was later convicted on multiple counts related to business fraud in New York—a case that some legal analysts argue was politically driven.
Speaking recently, Schiff responded to past accusations from Trump—including claims of treason and leaking classified information—by dismissing them as baseless. “This is not new,” he said. “But his continued attacks on the rule of law are becoming more dangerous.”
Florida-based criminal defense attorney Keith Gross told the Washington Times that mortgage fraud cases like this one are often resolved through plea deals. He noted they typically rely on clear-cut financial documents, making trials unnecessary unless there’s a dispute over key facts.
In this case, investigators would likely examine whether Schiff personally signed the disputed documents and whether he actually lived full-time in the Maryland home.
“If those points are uncontested, there’s little reason to take the matter to trial,” Gross explained. “Such cases usually end with fines, repayment of benefits, and possibly additional sanctions.”
Former President Trump weighed in via Truth Social, calling Schiff a “scam artist” and alleging that he misrepresented the status of his Maryland property to obtain favorable mortgage terms. Trump cited findings from Fannie Mae’s Financial Crimes Division, claiming they uncovered a pattern of misconduct.
“Mortgage fraud is a serious offense,” Trump posted. “Crooked Adam Schiff must be held accountable.”
