The Department of Justice has opened an unusual inquiry into its own handling of mortgage fraud allegations involving Sen. Adam Schiff, with a federal grand jury in Maryland now reviewing how the claims were pursued.
The move signals an escalating internal examination that extends beyond the original accusations and into the conduct of individuals who played a role in the investigatory process.
At the center of the new probe are two key allies of former President Trump: Ed Martin, appointed as a special attorney for mortgage fraud, and Bill Pulte, who leads the Federal Housing Finance Agency.
While Schiff has not been charged and has consistently denied wrongdoing, the Justice Department is now assessing whether certain investigative steps taken around the case were improper.
Witness Questioned on Contacts, Not Mortgage Fraud Claims
Christine Bish, a California congressional candidate who previously said she possessed whistleblower information about Schiff’s mortgage records, appeared before the grand jury on Thursday.
Her testimony, however, focused less on the substance of the fraud allegations and more on identifying individuals she communicated with about the matter.
A subpoena issued to Bish, reviewed by The Hill, asked whether she had engaged with anyone “claiming to be working for or at the direction” of the Justice Department, Martin, or Pulte.
Prosecutors are examining whether Martin may have improperly authorized or encouraged individuals outside the DOJ to act on behalf of the government during the investigation, a concern first reported by ABC News.
Questions Raised About Outside Participants
The subpoena references Robert Bowes, who describes himself on social platform X as someone involved in “Mortgage & Election Fraud” at the Office of Personnel Management.
Bowes previously served at the Department of Housing and Urban Development during the first Trump administration and authored the Consumer Finance Protection Bureau section of Project 2025.
Investigators also asked Bish about communications with Scott Strauss and “anyone claiming to be acting at the direction or request of Edward Martin,” indicating a broader review of how widely the alleged outreach may have spread.
Schiff Labels Allegations as Baseless
Schiff publicly addressed the accusations months earlier, immediately rejecting claims that he falsified mortgage documents.
“So the president today is accusing me of fraud. And the basis of his accusation is that I own a home in Maryland, and I own my home in California. Big surprise — members of Congress, almost all of them, own more than one home or rent more than one home because we’re required to be on both coasts. So he is using my ownership of two homes to make a false claim of mortgage fraud,” Schiff said in a video after Trump first raised the allegations.
The senator, now under renewed scrutiny due to the DOJ’s internal inquiry, has maintained that the mortgage claims are politically motivated and unfounded.
Wider Implications for Related Federal Cases
The Justice Department has not issued public comment on the grand jury proceedings, and both Pulte’s office and Martin’s spokesperson declined to respond to media inquiries.
The stakes surrounding the review continue to grow.
Any finding that investigators used improper methods could complicate or invalidate potential charges the DOJ might consider bringing against Schiff.
Moreover, the inquiry could affect several other mortgage-related cases the department has pursued.
The DOJ has filed charges in separate matters involving New York Attorney General Letitia James and Federal Reserve governor Lisa Cook.
Pulte has also issued a criminal referral targeting Rep. Eric Swalwell of California.
With multiple politically sensitive cases unfolding simultaneously, the Justice Department faces heightened scrutiny over whether its processes adhered strictly to legal standards.
The agency has already come under criticism in recent years for procedural missteps in other investigations, making the integrity of its internal practices a focal point in this latest review.
