New York Attorney General Letitia James has come under renewed scrutiny amid federal charges tied to a Virginia property she owns. Prosecutors allege that James misrepresented the status of a Norfolk home on her mortgage documents—claiming it would be a “second residence”—even though she later rented it out. Those actions, they contend, allowed her to secure more favorable loan terms and benefits meant for non‑investment properties.

At the same time, reports have emerged that James allowed her grandniece, Nakia Thompson, to live rent‑free in that same Virginia home since 2020. Court filings indicate Thompson is considered an “absconder” in North Carolina for probation violations but her past offenses are classified as low level and non‑extraditable. Thompson testified she did not pay rent or contribute to maintenance during her stay.

James strongly denies wrongdoing, calling the charges politically motivated retaliation against her after she successfully pursued civil fraud actions against former President Donald Trump. Legal observers have expressed skepticism about the strength of the case, noting the relatively modest financial benefit alleged (roughly $18,900), and questioning whether misstatements about property usage rise to the level of federal bank fraud.