Letitia James Indicted Over Mortgage Misrepresentation
New York Attorney General Letitia James has faced indictment concerning allegations that she obtained a favorable mortgage by misrepresenting the purpose of a home in Virginia, which was reportedly housing a relative deemed a “fugitive.”
James bought a three-bedroom residence in Norfolk, Virginia, back in 2020. This property was classified as an “investment” in her disclosures from 2020 to 2023, stating its value between $100,000 and $150,000. However, in a 2024 disclosure, she referred to it as “real property,” which is an interesting shift.
Interestingly, a month before this document was filed, Federal Housing Finance Agency Director William Pulte had already sent a criminal referral to the U.S. Department of Justice, claiming that James “falsified records” to secure loans in Virginia.
Federal prosecutors argue that she misrepresented how the property would be used when she obtained a mortgage of $109,800 for the $137,000 home. She reportedly agreed to a “Second Home Rider,” which states that the property must be utilized as a second home, instead of renting it out or using it as a primary residence.
Prosecutors stated that “despite these representations,” the Norfolk property “was not occupied or used by James as a secondary residence,” but rather as a rental investment.
This misrepresentation allowed her to secure a mortgage rate that wouldn’t have been available if she had disclosed that she planned to rent the home. The financial benefits from this deception amounted to approximately $18,933 over the loan’s duration, according to the Justice Department.
Furthermore, she also provided incorrect information on a homeowner’s insurance application, claiming the property was “owner-occupied.” However, federal tax forms suggest it was treated as “rental real estate,” as James reported “thousands of dollars in rents received” and claimed related deductions.
She is now facing charges for bank fraud and making false statements to a financial institution. If convicted on both counts, she could be sentenced to as much as 60 years in prison, along with a potential fine of $2 million. Her initial court appearance in Virginia is set for October 24.
Notably, since 2020, the property has been occupied by James’ grandniece, Nakia Thompson, who is a wanted individual for violating parole in North Carolina after a 2011 arrest. This charge stemmed from a felony related to malicious conduct by a prisoner, along with other offenses such as assaulting a government official and resisting arrest.
Thompson has continued to amass a criminal record in Virginia, with charges ranging from possession of burglary tools to grand larceny, along with allegations of contributing to a child’s delinquency—a serious concern. Back in 2020, she was ordered to pay $2,020 for pleading guilty to theft charges and was placed on probation for two years.
This summer alone, she racked up multiple vehicle-related charges, including excessive speeding and improper stopping on highways. She had even faced a previous speeding ticket for a similar offense, which resulted in a fine.
Additionally, the mortgage document from August 2020 clearly states that any “shared ownership arrangement” is not permitted at the Virginia property, requiring that James maintain “exclusive control” over it.
