New York Attorney General Letitia James, already facing a federal indictment for alleged bank fraud and false statements related to a Virginia property, is under renewed scrutiny after reports that her grandniece — Nakia Thompson — has been living rent‑free in a Norfolk, Virginia home James owns. Court records and media reporting indicate Thompson has resided there since 2020, while she is considered an “absconder” in North Carolina for probation violations tied to past misdemeanor convictions. Thompson has testified that she pays no rent and does not contribute to upkeep.

The Norfolk home is central to the federal case against James, which alleges she misrepresented the property’s intended use in her mortgage application — claiming it would be a secondary residence even while renting it out — in order to secure more favorable loan terms. Prosecutors say that using the property as a rental contradicts the mortgage covenant and undermines her claim of personal occupancy. Meanwhile, James disputes the allegations, calling the prosecution politically motivated and arguing that the charges are part of a broader pattern of targeting Trump’s critics.

If convicted, James could face significant penalties — up to 30 years in prison per count under the statutes cited in the indictment. Her arraignment is scheduled for October 24, 2025.