Daines Backs Bill Targeting Public Officials for Financial Fraud

HELENA, MT — U.S. Senator Steve Daines has joined a Republican-led effort to impose tougher penalties on public officials who commit financial fraud, backing legislation that comes as federal investigators examine allegations against two prominent Democrats.

The LETITIA Act, introduced by Sen. John Cornyn of Texas, would create mandatory minimum prison sentences for elected officials who commit bank fraud, tax fraud, or mortgage fraud. The legislation specifically targets what Daines called the abuse of “positions of public trust” for personal financial gain.

“I’ve always believed that for those of us lucky enough to hold positions of public trust— we are here to serve, not be served, and the interests of the American people and this country should always come before personal gain,” Daines said in a statement. “This bill will increase penalties for public officials who commit fraud and help ensure they serve with integrity and honesty.”

Enhanced Penalties for Officials

The bill would establish new mandatory minimum sentences of one year for bank fraud or mortgage fraud, and six months for tax fraud committed by public officials. For repeat offenders who commit three or more such crimes, penalties would increase to five years for bank or loan fraud and two years for tax fraud.

The legislation also increases maximum fines to $1.5 million for first-time offenders and $2 million for repeat offenders, compared to the current $1 million maximum for all defendants.

According to Daines’ office, the enhanced penalties would apply only to future convictions, not retroactively to past cases.

Political Context and Timing

The bill’s introduction comes amid Justice Department investigations into New York Attorney General Letitia James and California Sen. Adam Schiff, both facing allegations of mortgage fraud.

The Federal Housing Finance Agency referred James to the DOJ earlier this year, alleging she made false statements on mortgage applications, including listing a Virginia property as her primary residence on loan documents while also claiming a New York property. The agency also alleged James falsely identified herself as her father’s spouse on mortgage paperwork.

Schiff faces similar allegations for allegedly listing both Maryland and California properties as primary residences to obtain favorable loan terms.

The bill’s acronym—Law Enforcement Tools to Interdict Troubling Investments in Abodes—spells out “LETITIA,” a direct reference to the New York attorney general.

“This legislation would empower President Trump to hold crooked politicians like New York’s Letitia James accountable for defrauding their constituents, violating their oath of office, and breaking the law,” Cornyn said in introducing the bill.

Republican Initiative

Daines’ office confirmed the legislation is primarily a Republican initiative, with Daines joining as a co-sponsor alongside Senators John Kennedy of Louisiana, Deb Fischer of Nebraska, Roger Wicker of Mississippi, Ted Budd of North Carolina, and Pete Ricketts of Nebraska.

The bill defines “public officials” broadly to include officers, employees, or elected representatives at federal, state, or local levels, as well as individuals acting on behalf of government agencies.

Legislative Process

The bill text shows it has been introduced in the Senate but not yet assigned to a committee. The legislation would need approval from both chambers of Congress and President Trump’s signature to become law.

The Justice Department and Treasury Department would be required to issue new enforcement guidelines within 90 days of the bill’s enactment, directing federal agents and prosecutors on investigating public officials for financial fraud.

The legislation would also require updates to all federal task forces that investigate bank fraud and tax violations, suggesting a coordinated government-wide crackdown on official corruption. The directives would include specific instructions on how public officials should be investigated differently from ordinary citizens for these financial crimes.