Democratic California Sen. Adam Schiff, a longtime adversary of President Donald Trump, has created a legal defense fund amid a Department of Justice investigation into alleged mortgage fraud tied to his personal real estate deals.
The move comes as Schiff stares down the possibility of criminal indictment, with a Maryland grand jury weighing whether to charge him for allegedly falsifying property records to secure favorable loan terms. The controversy centers on claims that Schiff misrepresented both a Maryland home and a California condo as his “primary residence” at the same time, raising questions of fraud.
According to records, Schiff launched the “Senator Schiff Legal Defense Fund” last week, registering it with the IRS. The probe escalated after the Federal Housing Finance Agency referred the case to the DOJ earlier this year, alleging Schiff received improper benefits by misrepresenting his residency status.
Attorney General Pam Bondi appointed Ed Martin as special prosecutor on August 8 to oversee the investigation. Schiff’s attorney, former Obama official Preet Bharara, has dismissed the allegations as “transparently false, stale, and long debunked,” insisting the California Democrat is the target of political retribution.
But the investigation is serious. Federal prosecutors are digging into whether Schiff violated the law when securing mortgages while serving in Congress. A conviction could carry heavy penalties, both legally and politically, as Schiff continues his career in the Senate after years as one of Trump’s most vocal critics.
Trump himself has been quick to weigh in. In a Truth Social post, he accused Schiff of ripping off taxpayers. “Adam Schiff said that his primary residence was in MARYLAND to get a cheaper mortgage and rip off America, when he must LIVE in CALIFORNIA because he was a Congressman from CALIFORNIA. I always knew Adam Schiff was a Crook,” Trump wrote.
The former president also tied Schiff’s troubles back to Russiagate, where Schiff played a central role in amplifying allegations of Trump-Russia collusion. “These people put our country at great danger. And Adam Schiff, it was all made up. It was a hoax,” Trump said during a recent speech, adding that he hoped the DOJ would take action.
Schiff’s office, however, is framing the investigation as political. His spokesperson Marisol Samayoa accused Trump and his allies of weaponizing the justice system. “It’s clear that Donald Trump and his MAGA allies will continue weaponizing the justice process to attack Senator Schiff for holding this corrupt administration accountable. This fund will ensure he can fight back against these baseless smears while continuing to do his job,” she said.
Still, the stakes are rising. The grand jury in Maryland will decide whether Schiff faces indictment over the mortgage allegations. If charged, he would join a growing list of Democrats under federal scrutiny just as the political climate heats up ahead of the 2026 midterms.
The legal defense fund suggests Schiff is preparing for a drawn-out legal battle that could drain his resources and overshadow his political future. For now, the California Democrat is trying to project strength while the DOJ probe looms over him—and while Trump seizes the opportunity to remind voters of their long-running feud.
