This past month saw President Donald Trump accuse California Democratic Sen. Adam Schiff of engaging in mortgage fraud.

While Schiff has denied the allegations, a new federal investigation could result in criminal charges for the longtime Trump enemy. 

U.S. Attorney's Office in Maryland leading investigation

According to the New York Post, Federal Housing Finance Agency (FHFA) Director William Pulte sent a referral letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche on May 27.

"Mr. Schiff appears to have falsified records in order to receive favorable loan terms, and also appears to have been aware of the financial benefits of a primary residence mortgage when compared to a secondary residence mortgage as a spokesperson in 2023 told the media outlet CNN that, 'Adam’s California and Maryland addresses have been listed as primary residences for loan purposes because they are both occupied throughout the year and to distinguish them from a vacation property,'" the letter read.

Just the News previously reported that Schiff's declared a home which owns in Maryland to be his "principal residence" while refinancing it in 2009, 2011 and 2013.

However, the website noted that Schiff later listed his Burbank, California condo as his principal residence in another financing document and subsequently changed the Maryland home to his second residence.

A Trump administration source recently told Fox News host Laura Ingraham that the U.S. Attorney’s Office in Maryland is leading the investigation into Schiff's lending history.

Schiff accuses Trump of "political retribution"

The Post stated that representatives of the Maryland U.S. Attorney’s Office did not immediately respond to a request for comment.

For his part, Schiff pushed back on Trump's allegations via a social media post last month, saying, "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."

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. pic.twitter.com/zC5W2lFF3Z

— Adam Schiff (@SenAdamSchiff) July 15, 2025

"And this baseless attempt at political retribution won’t stop me from holding him accountable. Not by a long shot," he continued.

Spokesperson says lenders were aware of Schiff's circumstances

"This is just Donald Trump’s latest attempt at political retaliation against his perceived enemies," the California lawmaker insisted.

"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," Schiff added.

Meanwhile, the Post quoted a spokesperson for Schiff as saying that "the lenders who provided the mortgages for both homes were well aware of then-Representative Schiff’s Congressional service and of his intended year-round use of both homes, neither of which were vacation homes."