Calls Mount for Federal and City Probe into Public Advocate Jumaane Williams Over Foreclosure, Alleged Mortgage Fraud

NEW YORK – A prominent New York City lawmaker is calling for a federal and local investigation into Public Advocate Jumaane Williams over what he described as “serious red flags” tied to a foreclosed Brooklyn property that Williams owned for nearly two decades.

City Councilman Robert Holden (D-Queens) on Monday sent letters to Federal Housing Finance Agency Director William Pulte and New York City Department of Investigation Commissioner Jocelyn Strauber, urging a formal probe into whether Williams violated mortgage fraud laws or city ethics rules by misrepresenting his financial status and rental income over the course of 15 years.

Williams — a self-described democratic socialist and longtime critic of bad landlords — lost a two-family home in Canarsie to foreclosure last month after failing to make mortgage payments for more than a decade. The Post previously reported that the debt tied to the property ballooned to more than $944,000.

“If Mr. Williams misrepresented his financial position, rental income, or occupancy status in mortgage applications or ongoing certifications, he may have violated federal statutes governing mortgage fraud and bank fraud,” Holden wrote.

Holden said public records suggest Williams collected thousands of dollars annually from tenants at the East 98th Street property while failing to disclose the income in many of his legally required financial filings. Williams did not list any rental income in numerous filings dating back over a decade — despite court documents indicating tenants were living in the property. In more recent years, however, his 2022 and 2023 disclosures report between $5,000 and $55,000 in rental income.

The councilman also questioned whether Williams knowingly made false statements in city disclosure forms, which could trigger penalties under New York law.

“This matter is particularly troubling given Mr. Williams’ prominent role in publicly criticizing landlords through the City’s ‘Worst Landlords Watchlist’ while allegedly engaging in similar misconduct himself,” Holden wrote. “The apparent hypocrisy, combined with the scale of financial mismanagement and possible deception, undermines public confidence in elected leadership.”

Williams, who earns $184,000 annually as public advocate, purchased the Canarsie property with his mother in 2005 for $370,500. He secured full ownership a year later and took out a $389,600 mortgage in 2006 — which he later used to fund a vegan sandwich shop in Park Slope. The business failed in 2008. Bank of America initiated foreclosure proceedings in 2014 after years of missed payments.

The property failed to sell at auction last month and reverted back to the bank after no bidders met the minimum owed.

Williams’ office has denied any wrongdoing. His spokesman, Kevin Fagan, dismissed Holden’s allegations as politically motivated.

“Councilman Holden has every right to request wasting time and money investigating a decade-old non-story on a false premise — though it would have been more efficient if he’d simply looked at the public records and seen that the public advocate has accurately reported any rent collected and filed required disclosures,” Fagan said.

Both the Federal Housing Finance Agency and the city’s Department of Investigation declined to comment on the matter.

Williams served as a Brooklyn City Council member from 2010 until his election as public advocate in 2019. He has positioned himself as a progressive voice and has repeatedly used his platform to call out property owners he deems negligent or abusive.