[JTN ht Insty] California congressman’s behavior — filing contradictory statements about his "principal residence" — looks like "serious, documented allegations which carry significant criminal penalties," ex-FBI supervisor says.In the two decades before he became the Democrats' U.S. Senate nominee in California, former House Intelligence Committee Chairman Adam Schiff repeatedly declared in mortgage and election filings that both of his homes — one in California and the other in Maryland — were his "principal residence." The claims have now prompted an ethics complaint and could be prosecutable as fraud, experts said.
Americans are allowed to claim just one home as their primary residence: the one they live in the majority of the year, according to the federally backed lender Freddie Mac. But Schiff alternately declared both of his properties in the two different states as "principal" on multiple mortgage and election forms dating to 2003 and reviewed by Just the News.
Those declarations over the years won him financial and political benefits like lower mortgage interest rates, tax advantages and the ability to run for election in a California House district.
Schiff and his office did not respond to multiple requests seeking comment by phone or email.
"Principal" residences in two states
In at least three instances, documents show that in 2009 and again in 2011 and 2013, Schiff refinanced his Maryland home and declared it was his "principal residence" at the same time he had declared his principal residence was in the California, according to 2009 and 2011 financing docs for his Burbank condo.
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2009_02_06 - Maryland Refinance - Principal Residence Deed of Trust [8+8a].pdf
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2011_01_11 - Maryland Home Refinance - Principal Residence Deed of Trust [11+11a+11b].pdf
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2013_01_12 - Maryland Home Refinance Principal Residence Deed of Trust [15+15a+15b].pdf
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2009_06_17 - Purchase of Burbank condo [9+9a].pdf
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2011_11_04 - Burbank Condo Refinance [13].pdf
The pattern was first detected by Sacramento-based real estate investigator Christine Bish, who also is running for Congress as a Republican this year. She filed an ethics complaint against Schiff in Congress. The accompanying documents were then confirmed independently by Just the News.
The conflicting declarations were not resolved until 2020 when Schiff suddenly changed the notations on his Maryland mortgage to be a secondary residence. Bish alleges this change constitutes an admission by Schiff that the prior conflicting declarations may amount to a pattern and practice of mortgage fraud.
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2020_10_13 - Maryland Refinance as Second Home (admission) [16].pdf
Law enforcement experts said the documents could form the basis for prosecution. "These are serious, documented allegations which carry significant criminal penalties if substantiated," retired FBI supervisory special agent Jeff Danik said after reviewing the documents at Just the News’ request.
The FBI veteran noted the Justice Department "maintains a robust fraud enforcement section that routinely investigates similar allegations" and "the 10-year statute of limitations available in bank fraud investigations would allow for an expansive inquiry."
Pushed debunked Russian conspiracy theories
Schiff has long been a target of Republican critics, who seethed over his efforts to portray Donald Trump and his supporters as compromised by Vladimir Putin in the now widely debunked Russia collusion case and to pursue two impeachments against the former president.
Schiff’s insistent claims of a Trump-Russia conspiracy — fueled by debunked Hillary Clinton campaign research during the 2016 election — were rebuked by DOJ Special Counsel John Durham, who concluded there was no evidence to support such allegations or the FBI probe that ensued.
Schiff's record of credibility on such big issues could be a factor if the FBI began examining his mortgage claims, a former federal prosecutor told Just the News.
Schiff "has lied to the American people more times than I can count, so it would come as no surprise to learn he misled his bank," retired Little Rock, Ark., U.S. Attorney Bud Cummins said. Cummins, who prosecuted many financial fraud cases during his tenure, said Schiff's mortgage claims merit "a fair and neutral investigation by both Congress and DOJ, but fair and neutral investigations seem nearly extinct."