New York Attorney General Letitia James is under increasing federal scrutiny after allegations emerged that she housed a relative considered a fugitive in a Virginia property linked to her mortgage fraud indictment. Prosecutors say that this relative — her grandniece Nakia Thompson — has been living at James’s Norfolk, Virginia home since around 2020.
According to court documents, Nakia Thompson is wanted in North Carolina for violating her probation following earlier convictions for assault and battery, as well as other charges. She reportedly relocated to Virginia and resided in James’s property without paying rent.
The Virginia home is central to the federal case against James. Prosecutors allege that James misrepresented the intended use of the Norfolk property when she purchased it in 2020. The mortgage terms required that the home be used as a second or “non-primary” residence (often referred to as a “Second Home Rider”), but prosecutors say it was used more like an investment or rental property, which can change how mortgage lenders assess risk and interest rates.
It is now claimed that she saved nearly $18,933 over the life of the loan because of the alleged misrepresentation.
James has rejected the accusations. Her legal team argues that she never intended to mislead mortgage lenders and that some paperwork was mischaracterized. Specifically, they point to a power of attorney document where James’s niece would occupy the home as her principal residence.
As this case develops, observers are watching for testimony from Thompson, examination of property disclosures, and whether James’s defense can convincingly explain any inconsistencies. A crucial hearing in Virginia is scheduled, which may clarify the details around usage of the property, residency declarations, and whether housing a fugitive relative constitutes wrongdoing in this context.
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