WASHINGTON D.C. – A federal criminal inquiry has been initiated against Democratic Congressman Eric Swalwell of California for alleged mortgage and tax fraud, as confirmed on Thursday, November 13, 2025. The referral to the Department of Justice (DOJ) was made by Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), marking the latest in a series of investigations targeting high-profile critics of former President Donald Trump.

The allegations center on whether Swalwell made false or misleading statements in loan documents concerning his primary residence in Washington D.C. According to reports, the inquiry will examine several million dollars in loans and refinancing. In a statement, Swalwell asserted the investigation is politically motivated, stating, “As the most vocal critic of Donald Trump over the last decade and as the only person who still has a surviving lawsuit against him, the only thing I am surprised about is that it took him this long to come after me.”

A Pattern of Investigations

Swalwell is at least the fourth prominent Democrat to face a mortgage fraud probe initiated by a referral from the FHFA under the Trump administration. Similar investigations have been launched against New York Attorney General Letitia James, Federal Reserve Governor Lisa Cook, and Senator Adam Schiff of California. All have denied any wrongdoing.

In October 2025, a federal grand jury indicted James on charges of bank fraud and making false statements related to a property purchase. She has pleaded not guilty and is seeking to have the case dismissed, calling it a vindictive prosecution. The Justice Department is also examining allegations against Cook, who is separately challenging a Trump administration effort to remove her from the Federal Reserve board. A criminal case against Senator Schiff was also referred to the DOJ.

These actions are viewed by many as part of a broader “retribution campaign” that Trump promised to wage against his perceived political enemies. The campaign has also seen indictments brought against former FBI Director James Comey for allegedly making a false statement to Congress and former National Security Adviser John Bolton for allegedly mishandling classified materials. Both Comey and Bolton have denied the charges, with their lawyers arguing the prosecutions are politically motivated.

Global Implications of U.S. Political Tensions

While this story is rooted in American domestic politics, the pattern of utilizing state institutions for apparent political ends has significant global relevance, including for nations like Kenya. The weaponization of justice systems and regulatory bodies can erode democratic norms and the rule of law, a concern for developing democracies and established ones alike. International observers and foreign governments often look to the United States as a benchmark for democratic governance. Actions perceived as politically motivated prosecutions can undermine its credibility and potentially embolden authoritarian tendencies elsewhere.

The stability and predictability of U.S. governance are crucial for international relations. For East Africa, a politically tumultuous United States could impact everything from foreign aid and trade agreements to security partnerships. The current political climate in the U.S., characterized by deep partisan division and the targeting of political opponents, creates an unpredictable foreign policy environment. This uncertainty can complicate diplomatic efforts and strategic planning for Kenya and its neighbours.

The U.S. Attorney General, Pam Bondi, a staunch Trump ally, has been a central figure in these developments. Critics argue that under her leadership, the Justice Department has been politicized to serve the former president's personal and political agendas. For instance, the U.S. Attorney who initially believed there was insufficient evidence to charge Letitia James resigned under pressure, and a former personal attorney for Trump was installed to handle the case. Similarly, career prosecutors reportedly advised against charging Comey before a Trump appointee presented the case to the grand jury.

The ongoing legal battles and the political environment from which they arise will be closely watched by the international community. The outcomes of these cases against Swalwell, James, Cook, Schiff, Comey, and Bolton will serve as a critical indicator of the health and resilience of American democratic institutions. For Kenya and the world, the integrity of the U.S. justice system and its adherence to the rule of law are not merely internal matters but have far-reaching consequences for the global political landscape.