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A recent report suggests that the anti-Diversity, Equity, and Inclusion (DEI) measures used to justify the dismissal of 62 Fannie Mae employees last month might have served as a cover for terminating ethics investigators scrutinizing director Bill Pulte. These investigators were looking into whether Pulte wrongfully accessed mortgage records belonging to New York Attorney General Letitia James and other individuals opposed by former President Trump, according to the report.
The ethics and investigations team at Fannie Mae had been responding to tips received through a whistleblower line, which allows employees to report potential internal misconduct. Staff members alleged that senior officials had improperly instructed personnel to retrieve mortgage documents pertaining to James and several other Democratic officials, as reported by the Wall Street Journal on Tuesday. Investigators were tasked with determining who authorized the document searches, whether Pulte acted within his authority, and if proper protocols were adhered to, sources close to the matter informed the WSJ.
Among those laid off from the Federal National Mortgage Association, approximately twelve individuals were part of the ethics compliance office. This significantly weakened the team as it was investigating a high-ranking Federal Housing Finance Agency official closely associated with Pulte, according to the Washington Post. It remains unclear if this individual was Pulte himself, whose predecessor was removed after stating there was insufficient evidence to charge top Democratic officials with wrongdoing.
The ethics group escalated their findings to the Office of Inspector General for the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and its counterpart Freddie Mac. Acting Inspector General Joe Allen forwarded the case to the U.S. Attorney’s Office in Eastern Virginia, sources indicated. Subsequently, Allen was reportedly dismissed by the compliance team.
The case eventually reached Lindsey Halligan, the newly appointed U.S. Attorney for the Eastern District of Virginia. A former aide to the White House and personal attorney to Trump, Halligan assumed her role shortly after Trump dismissed her predecessor, Erik Siebert, who had stated there was not enough evidence to pursue cases against individuals Trump viewed as adversaries.
Halligan proceeded to indict James Comey on September 25 for allegedly lying to Congress and Letitia James on October 9 for purported mortgage fraud. Both defendants have entered pleas of not guilty. James is actively seeking to have her charges dropped and to have Halligan’s appointment declared invalid.
Halligan indicted James Comey on Sept. 25 for allegedly lying to Congress, and James for alleged mortgage fraud on Oct. 9. Both have pleaded not guilty. James is pushing to have her case dismissed and Halligan’s appointment declared illegal.
With News Wire Services
