DOJ Rejects MSNBC Report Claiming Weak Case Against Schiff in Mortgage Fraud Probe

The Justice Department denied an MSNBC report on October 23, 2025, alleging U.S. Attorney Kelly Hayes informed Deputy Attorney General Todd Blanche that the mortgage fraud investigation against Sen. Adam Schiff (D-Calif.) lacks sufficient evidence for charges.

MSNBC justice correspondent Ken Dilanian cited sources claiming Hayes met with Blanche recently, expressing doubts about the case's strength and viability. Dilanian quoted former prosecutor Preet Bharara, stating career prosecutors reviewed the "politically-motivated allegations" and found them baseless.

Blanche responded on X, denying the meeting occurred: "Breaking: @DilanianMSNBC reports on a recent meeting that never happened. ... Unequivocally: U.S. Attorney Hayes has told me no such thing."

The probe, led by Hayes in Maryland's U.S. Attorney's Office, examines Schiff's declarations of two homes— one in Maryland and one in California—as primary residences on mortgage and election forms from 2003 onward. This allegedly secured lower interest rates, tax benefits, and eligibility for a California House district.

Documents show Schiff refinanced his Maryland home in 2009, 2011, and 2013, declaring it primary while claiming the California property similarly. A 2009 House Ethics probe found he repaid Maryland taxes after calling it an error. Declarations changed in 2020, listing the Maryland home as secondary.

The investigation, reported by Fox News in summer 2025, stems from a 2024 criminal referral by Housing Director Bill Pulte accusing Schiff of falsifying records for 16 years. President Trump called for prosecution in August 2025, sharing a notarized affidavit of Schiff's Maryland primary residence claim.

As of yet, no charges have been filed and the case remains active.