A shadow of legal trouble has fallen upon Congressman Eric Swalwell, as allegations of mortgage fraud have led to a criminal referral to the Justice Department. The referral stems from claims made by Bill Pulte, a federal housing regulator, who alleges a deliberate misrepresentation regarding Swalwell’s primary residence.
At the heart of the matter is Swalwell’s $1.2 million Washington, D.C. home. Despite representing a California district and officially listing Livermore as his hometown, records indicate Swalwell designated the D.C. property as his “principal residence” when securing mortgage loans worth millions.
A public Deed of Trust, dated April 18, 2022, explicitly confirms the D.C. property’s designation as Swalwell’s “principal residence” – a crucial condition for obtaining the loan. This detail fuels the allegation that misleading statements were made during both the purchase and subsequent refinancing of the property.
The scrutiny isn’t limited to Pulte’s referral. The FHFA’s Inspector General has also launched an independent investigation into potential mortgage fraud committed by the Congressman, intensifying the pressure surrounding the situation.
Swalwell’s response has been anything but conciliatory. During a televised appearance, he issued a thinly veiled threat directed at investigators, vowing retribution when Democrats regain the majority in the House. He specifically mentioned the Judiciary Committee room and implied a rigorous questioning of those involved in the investigation.
Legal experts are already raising concerns about Swalwell’s statements. Mike Davis, founder of Article III Project, suggested the Congressman’s words could be construed as obstruction of justice – potentially adding another charge to the ongoing investigation.
The situation is particularly sensitive given Swalwell’s past involvement with Fang Fang, a Chinese national who allegedly had ties to the Chinese government. This latest controversy adds another layer of complexity to his already scrutinized public image.
The Justice Department now faces the task of determining whether Swalwell intentionally misrepresented his primary residence to secure favorable mortgage terms. The outcome of this investigation could have significant repercussions for the Congressman’s career and reputation.
