DOJ Launches Mortgage Fraud Investigation Targeting Senator Adam Schiff

Fox News reported on August 5, 2025, that the U.S. Attorney’s Office in Maryland launched a federal criminal investigation into Democratic California Senator Adam Schiff for alleged mortgage fraud. The Federal Housing Finance Agency (FHFA) referred Schiff’s case to DOJ, accusing him of falsifying bank documents and property records to secure favorable loan terms by misrepresenting his Maryland home as his primary residence from 2003 to 2019, despite representing California in Congress.

Context: Trump had publicly called on DOJ to investigate Schiff for his previous work investigating Trump, particularly his role as lead House impeachment manager in Trump’s first impeachment trial. The investigation targets alleged violations of federal criminal codes including wire fraud, mail fraud, bank fraud, and making false statements to financial institutions. By late October 2025, federal prosecutors reportedly had not produced enough evidence to bring charges, and the investigation ‘came to a standstill,’ according to law enforcement sources. Schiff has denied any wrongdoing.

Significance: This investigation exemplifies the Trump administration’s systematic weaponization of the Justice Department to retaliate against political opponents and former investigators. Launching criminal probes against Trump critics creates a chilling effect on congressional oversight and transforms DOJ from an independent law enforcement agency into a political weapon for settling scores, undermining democratic accountability and the rule of law.