Letitia James Faces Mortgage Fraud Charges
New York Attorney General Letitia James was seen leaving her Brooklyn home on Thursday, heading for her federal arraignment in Virginia related to mortgage fraud allegations. Interestingly, her grandmother, described as a “fugitive,” is also facing legal issues, including a possible restraining order for allegedly threatening school officials recently.
James, 67, is set to appear in the U.S. Courthouse Walter E. Hoffman in Norfolk at 11 a.m. on Friday. She was indicted by a federal grand jury on October 9, facing serious charges of bank fraud and making false claims—which, according to former prosecutors, can be quite challenging to defend.
A couple of hours before her appearance, her grandson, Nakia Thompson, was also scheduled to attend the hearing. An assistant principal at Thompson’s elementary school sought a protective order after Thompson reportedly shouted that he would “punch” her in the “face of a king.”
James purchased her second home on August 17, 2020, securing a loan of $109,600 that labeled her as the “sole borrower to occupy and use the property.”
However, federal prosecutors argue that this home was actually “not occupied or used” by James but was instead functioning as a rental investment, with Thompson living there.
This situation could save her nearly $19,000 “over the life of the loan,” according to a five-page indictment by U.S. Attorney Lindsey Harrigan, who emphasized the importance of accountability in the legal system.
James listed the mansion as an “investment” in her state ethics filings until May of this year. This came just after she was referred to the Justice Department for alleged mortgage fraud concerning the purchase of another home in Norfolk in 2023.
Financial disclosures reveal James has received between $1,000 and $5,000 in rental income from her Virginia property since 2020, but a family member living at the home testified earlier this year that she never paid any rent, as reported by The New York Times.
Neighbors on her street mentioned they had never noticed any surprise visits from state officials.
James, who once stated that “no one is above the law,” is now calling the fraud allegations “baseless.” She claims this is part of a larger scheme of political retribution driven by the president, who she accuses of weaponizing the justice system against her.
“These accusations are baseless,” she said. “The president’s actions violate constitutional order and have sparked criticism from across the political spectrum.” James is being represented by prominent Democratic attorney Abby Lowell.
Meanwhile, the case will be represented by Roger Keller, a former prosecutor from Missouri, in Norfolk federal court.
Thompson, 36, continues to live in the property named in the indictment and has been marked as wanted in North Carolina with a history of numerous arrests, including assaulting a police officer.
On October 9, the same day her great-aunt was charged, Thompson exhibited disruptive behavior during a phone call with school officials, which escalated to verbals threats at the school campus, prompting police involvement.
A judge has already granted a preliminary protective order against Thompson, forbidding her from any violent behavior or contact with the principal involved.
Interestingly, Thompson was previously associated with a relative of James in an incident involving theft from stores in Virginia, receiving a suspended sentence for grand larceny.
Shamis Thompson Hairston, Thompson’s mother, lives in a different home with her two daughters. One of them, Kayla, is a 21-year-old OnlyFans model who has her own legal troubles, including lying about her felony history while trying to purchase a firearm.
Over the last five years, relatives of James have faced various charges, including multiple felonies and misdemeanors, though many of those charges have been dismissed or reduced.
