WASHINGTON — Rep. Eric Swalwell (D-CA) is reportedly the subject of a federal criminal inquiry involving allegations of mortgage fraud, according to multiple sources familiar with the investigation. The inquiry, which has not yet resulted in charges, represents a serious escalation in what began as a financial-ethics review last year.
Federal investigators are reportedly examining whether Swalwell misrepresented income, assets, or occupancy information on mortgage applications connected to two California properties. The probe is being handled by a joint task force involving federal financial-crimes investigators and prosecutors from the U.S. Attorney’s Office.
Sources: “Investigators Are Taking This Seriously”
Two officials briefed on the matter — who spoke on condition of anonymity — told reporters that the investigation became “criminal in nature” earlier this year after new documents surfaced.
One official said:
“This moved beyond a standard ethics inquiry. Investigators are evaluating whether there was intentional misrepresentation on federally regulated mortgage documents.”
Swalwell’s office strongly denies any wrongdoing, calling the allegations politically motivated and “completely baseless.”
Swalwell Responds: “This Is a Smear Campaign”
In a statement released Thursday, Swalwell’s spokesperson dismissed the claims, stating:
“Rep. Swalwell has followed all financial rules and reporting requirements. This rumor-driven investigation is nothing but a politically motivated smear.”
Swalwell has long been a prominent Democratic figure, serving on the House Intelligence Committee and playing a significant role in previous impeachment proceedings — making him a frequent target for conservative critics.
What Investigators Are Looking At
According to sources, investigators are reviewing three key areas:
1. Occupancy Claims
Whether Swalwell falsely claimed a property would be his “primary residence” — a designation that significantly lowers interest rates.
2. Income and Asset Representations
Whether the congressman fully disclosed outside income streams or assets when applying for loans.
3. Possible Preferential Treatment
Whether any lender offered preferential terms because of Swalwell’s position in Congress.
Mortgage fraud cases often hinge on whether inaccuracies were intentional or clerical errors. Federal law treats intentional misrepresentation as a felony.
Political Fallout Begins
Republicans immediately seized on the report, arguing that Swalwell has long demanded accountability for others while avoiding scrutiny himself.
Rep. Jim Jordan (R-OH) said:
“Swalwell has spent years attacking political opponents with baseless accusations. Now he has to answer real ones.”
Democratic leaders have remained largely silent so far, a sign that they may be awaiting official confirmation from the Justice Department before responding publicly.
A Complicated History With Investigators
This isn’t the first time Swalwell has faced scrutiny.
In 2020, intelligence officials revealed that a suspected Chinese spy had cultivated connections with Swalwell years earlier — though he was never accused of wrongdoing. The matter nevertheless placed him under a national spotlight.
Some Republicans are now using that episode to argue that Swalwell should step down from committee assignments while the new investigation unfolds.
Legal Experts Say Inquiry Could Take Months
Federal financial-crime investigations often move slowly, with prosecutors digging through years of tax filings, bank statements, and loan documents.
Former federal prosecutor Adam Kessler said:
“Mortgage fraud investigations take time. The question is whether investigators find a pattern of intentional deception. That determines whether charges will be filed.”
If the investigation results in criminal charges, Swalwell could face significant political and legal consequences as the 2026 election cycle approaches.
What Happens Next?
The Justice Department has not commented, citing ongoing investigative protocol.
Swalwell’s attorneys say he is fully cooperating and expects to be cleared.
For now, the inquiry remains one of the most politically sensitive investigations involving a sitting member of Congress — and it could reshape partisan tensions in Washington in the months ahead.
