NORFOLK, Va. — A one-page mortgage document signed by New York State Attorney General Letitia James is pivotal in a federal criminal case for which she is currently serving a 60-year sentence.
This document contains a “second home clause” in which Ms. James stated that the property would primarily be her second home.
Federal prosecutors allege this declaration helped her secure a favorable mortgage rate from Old Virginia Mortgage/Annie Mac, resulting in nearly $19,000 in savings.
Reports indicate that her grandniece, Nakia Thompson, moved in shortly after the property was purchased.
The crux of the lawsuit suggests that James misled federal banks and made false statements to financial institutions, and whether Thompson pays rent could be crucial to the case.
Relatives of the attorney general informed a grand jury that Thompson has been living rent-free in the home, as per the Times.
James’ signature appeared on the mortgage deed dated August 17, 2020, outlining the property’s usage restrictions.
The mortgage includes terms requiring James to “occupy and use” the property as a second home and maintain “exclusive control” over who occupies it.
She also indicated that the house would be available mainly for her personal use for at least one year.
Importantly, the signed agreement forbids any “shared ownership arrangement,” which would necessitate renting the property or giving control to a management company, emphasizing it must be used “primarily” for her own needs.
A clause states that if she or anyone acting for her provides “inaccurate information” regarding its use as a vacation home, it would result in default on the $109,600 loan.
The case’s strength might heavily rely on Ms. Thompson’s claims of not paying rent.
Prosecutors claimed in the indictment that James submitted tax documents indicating she spent no days in the house while earning substantial rental income and even sought forgiveness on real estate expenses.
Some legal experts suggest Thompson’s criminal history could be problematic for James. Thompson is currently a fugitive in North Carolina and has a lengthy criminal record, including previous assault and burglary charges.
Ex-federal prosecutor Neema Rahmani noted that if Thompson serves as a defense witness, her past could be used to undermine her credibility.
“It will ultimately be up to the judge whether to allow this information,” she remarked.
Recently, the Eastern District of Virginia filed a complaint asserting that the home wasn’t used as a second residence but rather as a rental investment.
U.S. Attorney Lindsey Harrigan claimed that by inaccurately reporting her primary residence as a vacation home, James obtained a lower interest rate, avoiding significant interest payments.
Despite the allegations, James has denied any wrongdoing, describing the accusations as politically motivated by the Trump administration.
At a recent rally for Zoran Mamdani in Washington Heights, she expressed defiance. “We are seeing powerful voices trying to silence the truth, punish dissent, and weaponize justice for political gain,” she remarked.
James emphasized, “This is a defining moment in our history,” addressing concerns about the current state of democracy and governance.
