DOJ Launches Criminal Probe into Rep. Eric Swalwell Over Alleged Mortgage and Tax Fraud

The Department of Justice has opened a criminal investigation into Rep. Eric Swalwell (D-Calif.) following a referral from the Federal Housing Finance Agency, accusing the congressman of making false statements on loan documents for a Washington, D.C., property to secure millions in favorable financing. The probe, confirmed by multiple sources on November 13, 2025, marks Swalwell as the fourth prominent Democrat targeted in similar allegations since August, raising questions about his financial disclosures amid his long-standing role as a vocal critic of President Trump.

FHFA Director Bill Pulte sent a letter to Attorney General Pam Bondi on November 12, recommending a full investigation into potential mortgage fraud, state and local tax fraud, insurance fraud, and related offenses. The referral centers on Swalwell's 2020 purchase of a $1.2 million Victorian bungalow in D.C.'s Eckington neighborhood, a six-bedroom, 5.5-bath home just a mile from the Capitol. By declaring the D.C. property as his primary residence on mortgage applications and refinancing documents, Swalwell allegedly qualified for lower interest rates and tax benefits, netting several million dollars in loans and refinancings, according to a source familiar with the referral who spoke to NBC News.

The FHFA's inspector general has also launched a parallel review of the transaction. Swalwell, who represents California's 14th Congressional District in the East Bay, purchased the home while maintaining a residence in Castro Valley. Federal law requires members of Congress to be inhabitants of their state at election time but does not mandate a primary residence there throughout their term. However, misrepresenting residency for financial gain violates lending standards under the Truth in Lending Act (15 U.S.C. § 1601) and could constitute wire fraud (18 U.S.C. § 1343) if electronic submissions were involved.

Swalwell's financial history has drawn prior scrutiny. A 2019 Washington Free Beacon report detailed his struggles with student loans—unpaid since graduating in 2006—and credit card debt exceeding $100,000. His campaign committee faced a 2023 House Ethics Committee review over $360,000 in payments to a Haitian-American staffer, listed variably as salary, consulting, or travel reimbursements, though no wrongdoing was found. Swalwell dismissed the current referral as politically motivated, stating to NBC News, "As the most vocal critic of Donald Trump over the last decade, and as the only person who still has a surviving lawsuit against him, the only thing I am surprised about is that it took him this long to come after me." He vowed to continue his 2021 lawsuit against Trump over January 6-related threats and to speak out on behalf of Californians.

The referral follows a pattern established by Pulte, a Trump appointee overseeing Fannie Mae and Freddie Mac. In August 2025, he targeted Federal Reserve Governor Lisa Cook for allegedly claiming a D.C. rental as her primary residence on a 2022 mortgage, securing a lower rate. September saw a referral for Sen. Adam Schiff (D-Calif.) over a Maryland home listed as primary on 2009-2013 refinancings, potentially saving thousands in interest and taxes. New York Attorney General Letitia James received hers in April 2025 for a Virginia property claimed as primary in 2020, leading to her October indictment on fraud charges—she pleaded not guilty. Bondi appointed Associate Deputy Attorney General Ed Martin as special attorney for the Schiff and James probes, signaling coordinated DOJ action.

Pulte's efforts stem from a 2024 criminal referral he authored as a private citizen, accusing Democrats of systemic residency misrepresentations. As FHFA director since February 2025, he has access to mortgage records via Fannie Mae and Freddie Mac, which back 50% of U.S. home loans. Critics, including fired Fannie Mae watchdogs, alleged in a Wall Street Journal report that Pulte improperly obtained records of other Democrats, but the FHFA denied violations. The probes align with President Trump's emphasis on accountability, though Swalwell and allies like Reps. Sam Liccardo (D-Calif.) and Zoe Lofgren (D-Calif.) decry them as authoritarian targeting.

Swalwell, eyeing a 2026 California gubernatorial run per MSNBC sources, faces potential felony charges carrying up to 30 years if convicted on multiple counts.