New York Attorney General Letitia James was indicted on October 9, 2025, by a federal grand jury in the Eastern District of Virginia on two felony counts: bank fraud (18 U.S.C. § 1344) and making false statements to a financial institution (18 U.S.C. § 1014).
The charges stem from her 2020 purchase of a home in Norfolk, Virginia, where she allegedly misrepresented the property as her secondary residence to secure a lower interest rate and higher seller credits, saving approximately $18,933 over the loan's life.
Instead, the property was used as a rental investment, with tax records showing reported rental income.
If convicted, she faces up to 30 years in prison per count and fines up to $1 million each.
Recent reporting revealed that the Norfolk home has been occupied since 2020 by James's grandniece, Nakia Thompson, a 21-year-old OnlyFans "creator" facing her own federal gun charges (making her a fugitive).
Prosecutors allege this arrangement further proves the property was rented out rather than used as James's secondary residence, violating the mortgage rider (which prohibits rentals starting one year after closing). James has dismissed this as a "clerical error,"