DOJ Pushes Back on Report Claiming Case Against Senator Schiff Is Weak

The Department of Justice is forcefully denying reports that federal prosecutors have deemed the criminal case against Senator Adam Schiff (D-CA) too weak to pursue, calling recent media claims “completely false” and “fabricated.”

Deputy Attorney General Todd Blanche issued a rare public statement Wednesday, rejecting assertions made by MSNBC reporter Ken Dilanian, who claimed that Maryland’s U.S. Attorney, Kelly Hayes, told Justice Department leadership that a potential mortgage fraud case against Schiff lacked sufficient evidence.

“Breaking: @DilanianMSNBC reports on a recent meeting that never happened,” Blanche posted on X. “Can you ask your two ‘sources’ for more info? I’m genuinely curious. Excited to hear more about this made-up meeting! Also, unequivocally: U.S. Attorney Hayes has told me no such thing.”

The response came just hours after Dilanian published his report, citing two unnamed sources who claimed that Hayes met privately with Blanche to discuss the status of the Schiff investigation. According to Dilanian, Hayes reportedly told DOJ leadership she did not believe the case was strong enough to prosecute.

Dilanian doubled down on his reporting later that evening on MSNBC, stating, “She expressed to Blanche, we are told, that she does not believe that this is a strong case, that this is not a case that can be won, and not one the Justice Department should move forward with.”

However, Blanche’s categorical denial directly contradicted that account, sparking confusion about the accuracy of the MSNBC report and the reliability of its sources.

A Contested Case with High Political Stakes

The investigation centers on allegations that Senator Schiff may have misrepresented his primary residence in mortgage and financial disclosures — a potential violation of federal lending and ethics laws.

Conservative Brief first reported in early 2024 that Schiff listed both his Maryland and California homes as his “principal residence” on separate mortgage filings, a discrepancy that prompted an ethics complaint and scrutiny from federal housing authorities.

In May, Federal Housing Finance Agency (FHFA) Director William Pulte reportedly sent a formal letter to senior DOJ officials, including Todd Blanche and Pam Bondi, outlining potential irregularities tied to Schiff’s loan history.

“Based on media reports, Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003 to 2019 for a Potomac, Maryland-based property,” Pulte wrote in the letter, according to Fox News.

“As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the stability of the U.S. mortgage market,” the letter continued.

According to follow-up reports, Fannie Mae’s financial crimes division conducted its own internal review, producing a July memorandum that cited a “sustained pattern of possible occupancy misrepresentation” across multiple loans associated with Schiff and his family.

Political Fallout and Public Denials

Schiff, a longtime Democratic power broker and a former chairman of the House Intelligence Committee, has firmly denied all allegations of wrongdoing. Through his attorney, former federal prosecutor Preet Bharara, Schiff dismissed the claims as “politically motivated” and unsupported by evidence.

“It seems clear that a team of career prosecutors have thoroughly reviewed these allegations and found them baseless,” Bharara said in a statement released Thursday.

Critics, however, argue that the investigation has taken on a distinctly political tone, given Schiff’s prominent role in the Trump-Russia investigations and his history of clashing with Republican lawmakers. During his time leading the House Intelligence Committee, Schiff became one of the most visible Democratic figures defending the now-discredited Steele dossier and the broader Russia collusion narrative.

Reports from earlier this year also suggest that a former Democratic staffer on the House Intelligence Committee repeatedly warned the FBI in 2017 that Schiff had allegedly authorized the leaking of classified information to damage then-President Trump. The FBI memos documenting those claims were later turned over to Congress by former Director of National Intelligence Kash Patel.

Justice Department’s Dual Role

Complicating matters further, U.S. Attorney Kelly Hayes — the Maryland prosecutor leading the Schiff inquiry — is also overseeing a separate high-profile case against former Trump National Security Advisor John Bolton, who faces charges related to the alleged mishandling of classified documents.

That overlap has fueled speculation that Hayes’ office has become a political battleground within the DOJ, balancing politically sensitive cases involving both prominent Democrats and former Trump officials.

Despite the swirling controversy, the DOJ has not confirmed whether formal charges against Schiff are forthcoming or whether prosecutors have completed their review of the mortgage allegations.

For now, the Justice Department appears intent on publicly challenging any claims that the case has been quietly shelved. Blanche’s unusually pointed response suggests department leaders are eager to defend their credibility amid competing political narratives and unverified media leaks.

A Case That Could Reverberate

If the allegations against Schiff were to advance, the case could have significant implications for both political accountability and the perception of equal justice under the law. Conversely, if prosecutors ultimately decline to pursue charges, the controversy may add to growing public skepticism about the politicization of federal law enforcement.

For now, the dispute underscores the fragile balance between media reporting, political rivalry, and the rule of law in Washington — and highlights just how combustible even unconfirmed reports can become in an election-year environment.