Swalwell

Swalwell suit alleges abuse of power in Trump official’s mortgage probes

In a fiery rebuttal to allegations he’d criminally misrepresented facts in his mortgage documents, Rep. Eric Swalwell (D-Dublin) sued Federal Housing Finance Agency Director Bill Pulte on Tuesday — accusing him of criminally misusing government databases to baselessly target President Trump’s political opponents.

“Pulte has abused his position by scouring databases at Fannie Mae and Freddie Mac — two government-sponsored enterprises — for the private mortgage records of several prominent Democrats,” attorneys for Swalwell wrote in a federal lawsuit filed in Washington, D.C. “He then used those records to concoct fanciful allegations of mortgage fraud, which he referred to the Department of Justice for prosecution.”

They said Pulte launched his attack on Swalwell at a particularly inopportune time, just as Swalwell was launching his campaign for California governor.

Pulte’s attack, Swalwell’s attorneys wrote, “was not only a gross mischaracterization of reality” but “a gross abuse of power that violated the law,” infringing on Swalwell’s free speech rights to criticize the president without fear of reprisal, and violating the Privacy Act of 1974, which they said bars federal officials from “leveraging their access to citizens’ private information as a tool for harming their political opponents.”

Pulte, the FHFA and the White House did not immediately respond to requests for comment Wednesday.

Pulte has previously defended his work probing mortgage documents of prominent Democrats, saying no one is above the law. His referrals have exclusively targeted Democrats, despite reporting on Republicans taking similar actions on their mortgages.

Swalwell’s lawsuit is the latest counterpunch to Pulte’s campaign, and part of mounting scrutiny over its unprecedented nature and unorthodox methods — not just from targets of his probes but from other investigators, too, according to one witness.

In addition to Swalwell, Pulte has referred mortgage fraud allegations to the Justice Department against Sen. Adam Schiff (D-Calif.), New York Atty. Gen. Letitia James and Federal Reserve Governor Lisa Cook, who have all denied wrongdoing and suggested the allegations amount to little more than political retribution.

James was criminally charged by an inexperienced, loyalist federal prosecutor specially appointed by Trump in Virginia, though a judge has since thrown out that case on the grounds that the prosecutor, Lindsey Halligan, was illegally appointed. The judge also threw out a case against former FBI Director James Comey, another Trump opponent.

Cook’s attorneys slammed Pulte in a letter to the Justice Department, writing that his “decision to use the FHFA to selectively — and publicly — investigate and target the President’s designated political enemies gives rise to the unmistakable impression that he has been improperly coordinating with the White House to manufacture flimsy predicates to launch these probes.”

Schiff also has lambasted Trump and Pulte for their targeting of him and other Democrats, and cheered the tossing of the cases against James and Comey, calling it “a triumph of the rule of law.”

In recent days, federal prosecutors in Maryland — where Schiff’s case is being investigated — have also started asking questions about the actions of Pulte and other Trump officials, according to Christine Bish, a Sacramento-area real estate agent and Republican congressional candidate who was summoned to Maryland to answer questions in the matter last week.

Pulte has alleged that Schiff broke the law by claiming primary residence for mortgages in both Maryland and California. Schiff has said he never broke any law and was always forthcoming with his mortgage lenders.

Bish has been investigating Schiff’s mortgage records since 2020, and had repeatedly submitted documents about Schiff to the federal government — first to the Office of Congressional Ethics, then earlier this year to an FHFA tip line and to the FBI, she told The Times.

When Trump subsequently posted one of Schiff’s mortgage documents to his Truth Social platform, Bish said she believed it was one she had submitted to the FHFA and FBI, because it was highlighted exactly as she had highlighted it. Then, she saw she had missed a call from Pulte, and was later asked by Pulte’s staff to email Pulte “the full file” she had worked up on Schiff.

“They wanted to make sure that I had sent the whole file,” Bish said.

Bish said she was subsequently interviewed via Google Meet on Oct. 22 by someone from the FHFA inspector general’s office and an FBI agent. She then got a subpoena in the mail that she interpreted as requiring her to be in Maryland last week. There, she was interviewed again, for about an hour, by the same official from the inspector general’s office and another FBI agent, she said — and was surprised their questions seemed more focused on her communications with people in the federal government than on Schiff.

“They wanted to know if I had been talking to anybody else,” she said. “You know, what did I communicate? Who did I communicate with?”

Schiff’s office declined to comment. However, Schiff’s attorney has previously told Justice Department officials that there was “ample basis” for them to launch an investigation into Pulte and his campaign targeting Trump’s opponents, calling it a “highly irregular” and “sordid” effort.

The acting FHFA inspector general at the time Bish was first contacted, Joe Allen, has since been fired, which has also raised questions.

On Nov. 19, Rep. Robert Garcia (D-Long Beach) — the ranking Democrat on the House Oversight and Government Reform Committee — wrote a letter to Pulte denouncing his probes as politically motivated, questioning Allen’s dismissal and demanding documentation from Pulte, including any communications he has had with the White House.

Swalwell’s attorneys wrote in Tuesday’s lawsuit that he never claimed primary residence in both California and Washington, D.C., as alleged, and had not broken any laws.

They accused Pulte of orchestrating a coordinated effort to spread the allegations against Swalwell via a vast network of conservative influencers, which they said had “harmed [Swalwell’s] reputation at a critical juncture in his career: the very moment when he had planned to announce his campaign for Governor of California.”

They said the “widespread publication of information about the home where his wife and young children reside” had also “exposed him to heightened security risks and caused him significant anguish and distress.”

Swalwell said in a statement that Pulte has “combed through private records of political opponents” to “silence them,” which shouldn’t be allowed.

“There’s a reason the First Amendment — the freedom of speech — comes before all others,” he said.

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Stephen Cloobeck exits gubernatorial race, endorses Rep. Eric Swalwell

With the symbolic passing of a golden bear pin, Democratic businessman Stephen Cloobeck announced Monday evening that he was bowing out of the governor’s race and throwing his support behind noted Trump critic and close friend Rep. Eric Swalwell.

Cloobeck shared this news while appearing alongside Swallwell on CNN, saying that the San Francisco Bay Area Democrat will be the “greatest leader of this great state California.”

“I’m happy to say tonight that I’m going to merge my campaign into his and give him all the hard work that I’ve worked on,” said Cloobeck.

The announcement puts an end to the entrepreneur and philanthropist’s first-ever political campaign, which he funded through a fortune amassed in the real estate industry. In a recent UC Berkeley poll co-sponsored by The Times, Cloobeck received less than half of 1% of the support of registered voters polled.

Cloobeck said he had launched his run because he could not find a single qualified candidate — that was until Swalwell tossed his hat into the ring last week, sending an infusion of energy into the relatively sleepy race.

Pin now affixed to the lapel of his navy blue suit, Swalwell thanked his pal for the support and said he was looking forward to drawing on Cloobeck’s expertise as he worked to bring more housing and small business to the Golden State.

Swalwell, a former Republican who unsuccessfully ran for the Democratic presidential nomination in 2020, has said he is seeking the governorship to combat the threats President Trump poses to the state and to increase housing affordability and homeownership for Californians.

During his Monday evening interview, Swalwell doubled down on his proposal to implement a vote-by-phone system, despite the sharp criticism it invoked from the White House and two of his Republican challengers for governor, Riverside County Sheriff Chad Bianco and conservative political commentator Steve Hilton.

Swalwell said the proposal would make democracy more accessible, contending that if phones are secure enough to access finances and healthcare records, then they can be made secure enough to cast a ballot.

The backing of Cloobeck, a major Democratic donor, is good news for the congressman, who seeks to make a splash in an unusually wide open race to lead the world’s fourth-largest economy and the country’s most populous state.

About 44% of registered voters said in late October they did not have a preferred candidate for governor. The recent decisions of former Vice President Kamala Harris and Sen. Alex Padilla to opt out of the running further solidified that the state’s top job is anyone’s to win.

Times staff writer Seema Mehta contributed to this report.

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Race for California governor continues to heat up, with Trump critic Rep. Eric Swalwell jumping in

San Francisco Bay Area Democrat Eric Swalwell, a nettlesome foil and frequent target of President Trump and Republicans, on Thursday announced his bid for California governor.

The congressman declared his bid during an appearance on the ABC late-night show hosted by Jimmy Kimmel, adding a little Hollywood flourish to a crowded, somewhat sleepy race filled with candidates looking for ways to catch fire in the 2026 election.

Voter interest in the race remains relatively moribund, especially after two of California’s most prominent Democrats — former Vice President Kamala Harris and current U.S. Sen. Alex Padilla — opted to skip the race after months of speculation. About 44% of registered voters said in late October that they had not picked a preferred candidate to lead California, which is the most populous state in the union and has the fourth-largest economy in the world.

The lack of a blockbuster candidate in the race, however, continues to entice others to jump in. Earlier this week, billionaire hedge fund founder Tom Steyer announced his bid, and other well-known Democrats are exploring a possible run.

Swalwell, a 45-year-old former Republican and former prosecutor who unsuccessfully ran for president in 2020, said his decision was driven by the serious problems facing California and the threats posed to the state and nation with Trump in the White House.

“People are scared and prices are high, and I see the next governor of California having two jobs — one to keep the worst president ever out of our homes, streets and lives,” Swalwell said in an interview with The Times. “The second job is to bring what I call a new California, and that’s especially and most poignantly on housing and affordability in a state where we have the highest unemployment rate in the country, and the average age for a first-time homebuyer is 40 years old, and so we need to bring that down.”

Gov. Gavin Newsom cannot run for reelection because of term limits, and he is currently weighing a 2028 presidential bid.

None of the candidates in the race, including Swalwell, possess the statewide notoriety, success or fundraising prowess of California’s most recent governors: Newsom, California political icon Jerry Brown and movie star Arnold Schwarzenegger.

“If you look at the past three governors, they’ve all had personalities,” said Jim DeBoo, Newsom’s former chief of staff, at a political conference at USC on Tuesday. “When you’re looking at the field right now, most people don’t know” much about the candidates in the crowded race despite their political bona fides.

Nearly a dozen prominent Democrats and Republicans are running for governor next year, including: former Rep. Katie Porter of Irvine, former Los Angeles Mayor Antonio Villaraigosa: Riverside County Sheriff Chad Bianco, former U.S. Health and Human Services Secretary Xavier Becerra, state Supt. of Public Instruction Tony Thurmond; former Controller Betty Yee and conservative commentator Steve Hilton. And speculation continues to swirl about billionaire real estate developer Rick Caruso and Atty. Gen. Rob Bonta possibly entering the race.

On Thursday, Thurmond proposed a tax on the wealthy to fund education, healthcare, firefighting and construction. The proposal was seen in part as a subtle dig at Steyer and Caruso, both of whom have used their wealth to fund previous runs for office.

“The naysayers say California’s ultra wealthy already pay enough, and that taxing billionaires will stifle innovation and force companies to leave our state,” he said in an online video. “I don’t buy it.”

Steyer painted his decision to leave the hedge fund he created in California as an example of his desire to give back to the state’s residents in an ad that will begin airing on Friday.

“It’s really goddamn simple. Tackle the cost-of-living crises or get the hell out of the way. Californians are the hardest-working people in the country. But the question is who’s getting the benefit of this,” he says in the ad, arguing that he took on corporations that refused to pay state taxes as well as oil and tobacco companies. “Let’s get down to brass tacks: It’s too expensive to live here.”

Porter also went after Steyer, another sign that the intensity of the race is heating up as the June primary fast approaches.

“A new billionaire in our race claims he’ll fight the very industries he got rich helping grow — fossil fuel companies, tobacco and private immigration detention facilities — at great cost to Californians,” she wrote on X on Wednesday.

The former congresswoman was the subject of recent attacks from Democratic rivals in the governor’s race after videos emerged of her scolding a reporter and swearing at an aide. Yee said she should drop out of the race and Villaraigosa blistered her in ads.

Villaraigosa also attacked Becerra for his connection to the scandal that rocked Sacramento last week, involving money from one of his campaign accounts being funneled to his former chief of staff while Becerra served in the Biden administration.

“We don’t have a strong or robust opposition party in California, so you end up like seeing a lot of this action on the dance floor in the primary, obviously, between Democrats, which is going to be interesting,” said Elizabeth Ashford, who worked for Schwarzenegger, Brown and Harris and currently advises Assembly Speaker Robert Rivas. “There’s obviously a lot of longtime relationships and longtime loyalties and interactions between these folks. And so what’s going to happen? Big question mark.”

The ability to protect California from Trump’s policies and political vindictiveness and deal with the state’s affordability, housing and homelessness crisis will be pivotal to Swalwell’s potential path to the governor’s mansion. His choice to announce his decision on Kimmel’s show was telling — the host’s show was briefly suspended by Walt Disney-owned ABC under pressure from Trump after Kimmel made comments about the shooting death of conservative activist Charlie Kirk.

Kimmel thanked Swalwell for his support during that period, which included the congressman handing out pro-Kimmel merchandise to his colleagues in Washington, D.C., before the two discussed the future of the state.

“I love California, it’s the greatest country in the world. Country,” Swalwell said. “But that’s why it pisses me off to see Californians running through the fields where they work from ICE agents or troops in our streets. It’s horrifying. Cancer research being canceled. It’s awful to look at. And our state, this great state, needs a fighter and a protector, someone who will bring prices down, lift wages up.”

There is a history of Californians announcing campaigns on late-night television. Schwarzenegger launched his 2003 gubernatorial bid on “The Tonight Show,” hosted by Jay Leno; Swalwell announced his unsuccessful presidential bid on “The Late Show with Stephen Colbert.”

As a member of the House Intelligence Committee, Swalwell said, he traveled to nearly 40 countries, and he would try to leverage the relationships he formed by creating an ambassador program to find global research money for California given the cuts the Trump administration has made to cancer research and other programs.

The congressman is perhaps best known for criticizing Trump on cable news programs. But he’s faced ample attacks as well.

In 2020, Swalwell came under scrutiny because of his association with Chinese spy Fang Fang, who raised money for his congressional campaign. He cut off ties with her in 2015 after intelligence officials briefed him and other members of Congress about Chinese efforts to infiltrate the legislative body. He was not accused of impropriety.

He is also being investigated by the Department of Justice over mortgage fraud allegations, which he dismissed as retribution for him being a full-throated critic of Trump.

Swalwell served on the City Council of the East Bay city of Dublin before being elected to Congress in 2012 by defeating Rep. Pete Stark, a fellow Democrat.

An Iowa native, Swalwell grew up in Dublin, which he said was “a town of low-income expectations” that was smeared as “Scrublin” at the time. He said that after graduating from law school, he served on the local planning commission that helped transform Dublin. The town increased housing, attracted Fortune 500 employers, exponentially improved the number of students going to college and leveraged developers to improve schools, resources for senior citizens, and police and fire services.

“We have a Whole Foods, which no one can afford to shop at,” he said.

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