Senator Adam Schiff is facing serious allegations involving a suspected mortgage fraud scheme that could lead to hefty fines or legal action.
Accused of Misleading Lenders on Primary Residence
The California senator is being investigated for allegedly declaring two separate properties as his “primary residence” during overlapping years. Financial records suggest Schiff and his wife labeled their Potomac, Maryland home as their main residence from 2013 to 2019.
This designation helped them secure a reduced mortgage rate, according to The Washington Times. However, during the same period, Schiff also claimed his Burbank, California home as his primary residence. That allowed him to obtain a property tax exemption worth nearly $7,000.

Why Primary Residence Designation Matters
Lenders offer better terms on primary homes because they are considered less risky than second homes or investment properties. Misrepresenting a property’s status can result in legal penalties, especially when financial benefits are involved.
Mortgage fraud cases like this are typically straightforward to prove due to the paper trail, according to financial crime experts.
Justice Department Called to Investigate
The allegations have been referred to the U.S. Department of Justice. If the investigation confirms misconduct, Schiff could face fines or further consequences.
The irony of this case hasn’t gone unnoticed. Schiff has spent years publicly accusing others—particularly former President Donald Trump—of financial misconduct.
Schiff’s Past Criticism of GOP and Trump
In 2024, Schiff strongly criticized Republicans for supporting Trump despite the legal controversies surrounding him. At the time, he stated:
“The party that once claimed moral leadership is now forming an immoral majority to reinstall Trump.”
Trump was later convicted on 34 counts of business fraud in New York. Some legal analysts have argued the case was politically motivated.
Schiff Denies Any Wrongdoing
Schiff has responded to the accusations by denying any fraudulent intent. He says both lenders were aware he regularly used both homes throughout the year and insists that neither property was used as a vacation home.
Still, the contrast is striking. A senator who built his reputation on exposing fraud now finds himself accused of similar behavior.