President Donald Trump has intensified his long-running feud with California Democratic Senator Adam Schiff, publicly calling for his prosecution and imprisonment over what he describes as clear-cut mortgage fraud.
In a fiery Truth Social post this week, Trump labeled Schiff a “scam artist” and declared that the senator is in “BIG TROUBLE,” insisting he must “pay the price of prison” for allegedly falsifying loan documents to secure favorable mortgage rates.
The accusations stem from a report by Fannie Mae’s Financial Crimes Division, which reportedly uncovered a sustained pattern of possible occupancy misrepresentation. Trump claims Schiff falsely listed a Potomac, Maryland home as his primary residence from 2013 to 2019, allowing him and his wife to obtain significantly lower interest rates on their mortgage—rates reserved for owner-occupied primary homes rather than second properties or investments.
At the same time, Schiff, who has represented California districts in Congress for decades, also claimed a Burbank, California property as his primary residence to claim a valuable tax exemption worth around $7,000. Experts note that borrowers typically enjoy cheaper rates on primary residences because lenders consider them lower risk.
Schiff’s office has pushed back, stating the senator followed legal advice while splitting time between his California home and the Washington, D.C. area property. A Fannie Mae document reviewed by the Los Angeles Times stopped short of formally accusing him of fraud but flagged concerns over inconsistent residency claims across loan records.
Financial crimes specialists say cases like this are often straightforward, hinging on documented evidence such as signed loan applications and actual living arrangements. Defense attorney Keith Gross told the Times that such matters rarely go to full trial, typically resolving through plea agreements involving fines, restitution, and other penalties.
Trump’s latest broadside revives tensions dating back to his first term, when Schiff played a leading role in investigations into Russian election interference and Trump’s 2019 impeachment. The president has repeatedly framed his push for accountability as part of a larger effort to hold political opponents responsible for what he sees as misconduct.
In his post, Trump wrote: “I have always suspected Shifty Adam Schiff was a scam artist. And now I learn that Fannie Mae’s Financial Crimes Division have concluded that Adam Schiff has engaged in a sustained pattern of possible Mortgage Fraud. Mortgage Fraud is very serious, and CROOKED Adam Schiff needs to be brought to justice.”
The case has now reportedly been referred to the Justice Department, keeping the spotlight on whether federal prosecutors will pursue charges against the veteran Democratic senator.