DOJ opens rare internal probe, grand jury reviews handling of mortgage fraud inquiry tied to Senator Adam Schiff
A federal grand jury in Maryland is overseeing a rare DOJ internal review of how a mortgage-fraud tip tied to Senator Adam Schiff was handled, focusing on whether Trump-era officials Bill Pulte and Ed Martin improperly influenced the initial investigatory process.
Key takeaways
- Federal grand jury convened: A grand jury in Greenbelt, Maryland, is reviewing the DOJ’s handling of a mortgage-fraud tip connected to Senator Adam Schiff (CBS News).
- Focus on officials, not Schiff: The probe targets FHFA Director Bill Pulte and DOJ pardon attorney Ed Martin and whether standard procedures were bypassed (Axios).
- Subpoenas and testimony: Witnesses including Christine Bish have testified and subpoenas seek communications and documents tied to Pulte, Martin and intermediaries (ABC News; Investing.com).
- Political implications: The unusual internal review raises concerns about potential partisan influence in federal referrals and investigative channels.
Main story
What prompted the review
The matter began when Christine Bish, a California Republican and congressional candidate, filed a tip with the Federal Housing Finance Agency alleging Senator Adam Schiff misrepresented his primary residence on mortgage paperwork for a Maryland home while also claiming a residence in California. The tip was referred by FHFA Director Bill Pulte to the DOJ in May 2025, initiating an inquiry that has since drawn heightened scrutiny (CBS News video; ABC News).
DOJ investigates Schiff probe handling
Federal prosecutors and the FBI are examining whether Pulte and Ed Martin—the DOJ’s pardon attorney who was designated as a special assistant U.S. attorney for certain public-official mortgage fraud matters—circumvented normal protocols or involved outside parties inappropriately. The investigation is notable for its focus on the conduct of DOJ and FHFA officials rather than the underlying mortgage allegations against Senator Schiff (Axios; Investing.com).
Subpoenas and grand jury testimony
Sources report that the grand jury has issued subpoenas for all communications and documents related to Bill Pulte, Ed Martin and anyone who acted as an intermediary or claimed to represent them or the DOJ. Witnesses tied to the original tip — notably Christine Bish — have been questioned about their interactions with Pulte and Martin more than about the mortgage allegations themselves (ABC News; Investing.com).
“Attorneys for Senator Schiff have called the original mortgage fraud investigation ‘politically motivated’ and said it is not backed by strong evidence,” the record shows.
Who are the key figures under review?
- Bill Pulte — Director of the FHFA, a Trump appointee who referred the tip to the DOJ and has made other high-profile referrals (Investing.com).
- Ed Martin — The DOJ’s pardon attorney who served as a special assistant U.S. attorney in these matters; his role in directing or shaping the original inquiry is central to the internal probe (Axios).
Political and legal context
Senator Schiff’s legal team argues the investigation was politically motivated, citing a thin evidentiary basis and potential statute-of-limitations hurdles. Schiff has denied any wrongdoing. The probe is politically charged because Schiff is a prominent Democrat and frequent critic of former President Trump; critics warn that using federal processes against political opponents would be a serious breach of norms, while supporters of Pulte and Martin say FHFA referrals can represent legitimate oversight (CBS News; Axios).
Other referrals and broader concerns
Reporting shows Pulte has referred matters involving other high-profile figures — including New York Attorney General Letitia James and Federal Reserve Governor Lisa Cook — prompting broader scrutiny about whether referrals reflect selective targeting. Inspectors general and federal prosecutors are said to be examining patterns of referrals and handling for signs of improper influence or retaliation (Investing.com; Axios).
What officials say — and what they have not said
The DOJ, FHFA and Senator Schiff’s office have largely declined public comment while the grand jury process proceeds. Reporters note subpoenas have been issued and investigators are focused on documents and communications that could show whether standard protocols were sidestepped (CBS News video; ABC News).
Implications for San Diego, California
Economic impact: The probe focuses on federal institutions and national figures rather than local San Diego real estate markets, but changes in FHFA leadership or policy could eventually affect mortgage oversight, financing and insurance rules relevant to local lenders (Investing.com).
Political consequences: San Diego’s moderate electorate values impartial federal institutions; local leaders and candidates may press for clearer safeguards and transparency in federal referrals that affect constituents (Axios).
Social and cultural effects: The investigation could deepen public skepticism about political influence in federal probes. Civic groups and local media in San Diego may call for independent oversight and emphasize the need to avoid even the appearance of partisan action (CBS News).
Ongoing developments
The grand jury review remains active and subpoenas are reportedly in place. No new criminal charges related to the original mortgage allegations have been announced against Senator Schiff. The DOJ’s scrutiny of Pulte and Martin’s actions represents an uncommon move to examine how federal investigations are conducted — a development being watched by federal watchdogs, legal experts and elected officials nationwide (CBS News; Axios).
Sources referenced in this report
- CBS News — reporting on the DOJ review and related video coverage.
- CBS News video — video reports cited in coverage.
- Axios — reporting on Pulte and Martin’s roles and the internal review.
- ABC News — coverage of grand jury testimony and subpoenas.
- Investing.com — reporting on communications and witness accounts.
- YouTube — video source linked in original reporting.
- YouTube — additional video source cited in coverage.
- AOL News — supplementary compilation of public records and accounts.
Reporting compiled from Times Media Service and the outlets above. All developments are current as of Nov. 22, 2025.
