Politics

Federal prosecutors have opened a criminal investigation into New York’s attorney general, Letitia James, after the Trump administration alleged last month in a referral that she may have falsified paperwork for properties she owns in Virginia and New York, according to people familiar with the matter.

The investigation marks a swift and notable escalation against James, a major political enemy of Donald Trump, who was ordered to pay more than $450m in penalties as a result of a lawsuit brought by James’s office that accused him of inflating his net worth to secure financial benefits.

In what appears to be the early stages of the FBI criminal investigation, prosecutors have impaneled a federal grand jury to hear evidence in the eastern district of Virginia after the head of the federal housing agency, William Pulte, last month made the referral to the justice department, the people said.