California Sen. Adam Schiff (D) is facing potential fines and penalties in a mortgage fraud investigation, financial crime experts say.
The senator has been referred to the Justice Department for prosecution over allegations of falsely claiming primary residence status in two states to gain financial benefits.
Schiff is accused of submitting falsified bank and property documents that designated a home he owns with his wife in Potomac, Maryland, as their primary residence.
This allegedly allowed them to lower mortgage payments from 2013 to 2019.
Despite being a senator from California, Schiff reportedly also claimed a property in Burbank, California, as his primary residence during the same period.
This designation secured a tax exemption that saved him around $7,000, per the Conservative Brief.
Mortgage lenders typically offer lower rates for primary residences, which are seen as less risky compared to secondary homes or investment properties. This key point underlies the allegations against Schiff.
The case marks a significant reversal for Schiff, a vocal critic of former President Donald Trump, who led calls to prosecute Trump over business fraud allegations.
Last year, Schiff accused Republicans of abandoning principles to support Trump. Trump was later convicted in New York on multiple counts of