Federal prosecutors in Maryland are reportedly defending Democrat Sen. Adam Schiff as a long-running mortgage fraud investigation involving the California lawmaker has stalled, according to multiple sources familiar with the case.

Schiff, who previously represented California’s 30th Congressional District before being elected to the U.S. Senate in 2024, is under investigation for alleged mortgage fraud, specifically occupancy fraud, tied to a Maryland property he purchased with his wife in 2003.

Congressman Adam Schiff (R) speaks during House Judiciary Committee field hearing on New York City violent crimes at Javits Federal Building in New York City on April 17, 2023

The case stems from questions over whether Schiff falsely claimed that the property was his “primary residence” in order to secure favorable mortgage rates.

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The Gateway Pundit’s Joe Hoft first reported on the allegations in April 2023. Later that summer, Fox News host Laura Ingraham reported that the U.S. Attorney’s Office in Maryland had opened an investigation into Schiff for possible charges related to the mortgage filings.

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According to property and loan documents, Schiff purchased the home in 2003 and declared under oath that he and his wife would occupy it for at least 12 consecutive months as their primary residence.

Despite that claim, Schiff continued to vote in California elections and listed a Los Angeles condominium as his primary residence.

Records show that Schiff refinanced the Maryland property multiple times between 2009 and 2013, each time asserting that it remained his principal home.

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In 2009, a House Ethics investigation reviewed the matter after questions were raised about Schiff’s residency status and tax filings. Schiff said the filing was a mistake and repaid the exempt Maryland taxes.

In recent months, prosecutors in Maryland have reportedly shared information with the media, claiming there is insufficient evidence to charge Schiff. NBC News reported this week that the federal probe “came to a standstill” after months of investigation.

Four individuals familiar with the case told the outlet that prosecutors have not gathered enough evidence to move forward with charges.

The case was originally referred to the Department of Justice by Housing Director Bill Pulte, who accused Schiff of falsifying bank documents and property records over a 16-year period.

Pulte alleged that Schiff’s repeated filings allowed him to secure lower mortgage rates reserved for primary residences.

President Donald Trump publicly criticized Schiff in June, calling for prosecution and sharing a signed affidavit from Schiff’s mortgage file.

“Adam Schiff is a THIEF! He should be prosecuted, just like they tried to prosecute me, and everyone else — The only difference is, WE WERE TOTALLY INNOCENT, IT WAS ALL A GIANT HOAX!”

President Trump posted on Truth Social, attaching a copy of Schiff’s notarized declaration identifying the Maryland house as his “principal residence.”

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NBC’s report described a recent internal meeting between U.S. Attorney Kelly Hayes, who is overseeing the investigation, and Deputy Attorney General Todd Blanche.

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Hayes reportedly told Blanche that the evidence collected so far was not strong enough to bring charges, though the Justice Department had not reached a final decision.

“No final decision has been made,” one source told NBC News. Another federal law enforcement official said the investigation “came to a standstill,” but could be reopened if new information is uncovered.

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NBC’s Ken Dilanian also reported that Ed Martin, a senior Justice Department official, has pressed to keep the case open, despite Hayes’ skepticism about the evidence. However, Blanche later denied reports that the meeting took place, describing the claim as inaccurate.

The Justice Department has not issued an official statement on the status of the investigation, and Schiff’s office has declined to comment on ongoing legal matters. The U.S. Attorney’s Office in Maryland has likewise not confirmed whether the inquiry will continue or be formally closed.

The case remains under internal review. According to officials familiar with the process, prosecutors have been directed to gather additional documentation related to Schiff’s refinancing history and property records before making a final determination.

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