A single-page mortgage document, signed by New York’s Attorney General Letitia James, has landed her at the heart of federal criminal charges—exposing her to a staggering 60-year prison sentence.
In the 'second home rider' attached to her mortgage—obtained exclusively by The Post—James swore that the property would serve as a second home, one she would primarily occupy herself.
The move scored her a lower mortgage rate from Old Virginia Mortgage/Annie Mac—putting nearly $19,000 straight into her pocket, according to federal prosecutors.
New York Attorney General Letitia James is stepping forward to speak on behalf of Zohran Mamdani, the Democratic nominee for New York City mayor.
In fact, James’ serially criminal grandniece, Nakia Thompson, moved in shortly after the house was officially hers, the New York Times reports.
A key hinge of the case—accusing James of federal bank fraud and lying to a financial institution—may come down to one crucial question: was Thompson actually paying rent?
But the relative of New York’s top prosecutor told a grand jury in June that she had been living rent-free in the three-bedroom, one-bath home, the Times reported.
James’ signature is stamped at the bottom of the mortgage rider, dated August 17, 2020—a document that clearly spells out exactly how the home can and cannot be used.
This undated mugshot of Nakia Monique Thompson comes from the North Carolina Department of Corrections. NC Dept. of Correction
James faces 60 years in federal prision.
The rider included strict covenants requiring James to "occupy and use" the property as a second home, while also retaining "exclusive control" over who could live there.
She also affirmed that the property would be used "primarily" for her personal stay for at least one full year.
The signed document strictly prohibits any "shared ownership arrangement" that would force her to rent out the property or hand over control to a management firm—or any other person or entity—over how the home is used, making clear it is to be "primarily" for her personal use.
The signed document outright bans any form of "shared ownership arrangement."
The document goes further, stipulating that James could be considered in default on the $109,600 loan if she—or anyone acting on her behalf—provided 'inaccurate information or statements' about her occupancy of the home as a second residence.
A large part of the case could rest on Thompson’s claim that she wasn’t paying rent.
According to prosecutors’ indictment, James filed tax documents claiming she spent zero days in the house, while also reporting thousands of dollars in rental income. She even sought exemptions for expenses she allegedly incurred on the property, the documents show.
The outcome of much of the case could rest on Thompson’s shocking claim that she wasn’t paying any rent.
But one legal expert warned that Thompson’s criminal record could come back to haunt James.
The 36-year-old is a fugitive from justice in North Carolina, where she pleaded guilty to assaulting a police officer in 2011. Her extensive criminal record in Virginia includes charges for grand larceny and possession of burglary tools.
Former federal prosecutor Neama Rahmani said that if Thompson were called as a defense witness, prosecutors would move to use her criminal history to undermine her testimony.
James’ signature is emblazoned at the bottom of the mortgage rider, dated August 17, 2020.
“It’ll be up to the judge in the case to decide whether to allow Thompson’s criminal history to be used to impeach her,” she said.
James was hit with federal charges out of the Eastern District of Virginia last week, alleging the home “was not occupied or used by James as a secondary residence and was instead used as a rental investment property.”
According to US Attorney for the Eastern District of Virginia Lindsey Halligan, James’ alleged misrepresentation of the home as a second residence allowed her to snag a 3% interest rate—saving New York’s top cop $18,933 in interest and seller credits.
James was slapped with federal charges in the Eastern District of Virginia. Kristen Zeis
James has denied any wrongdoing, insisting the charges are politically motivated and part of a targeted attack by the Trump administration.
She showed defiance as she made an appearance at a Zohran Mamdani rally in Washington Heights on Monday.
“We see powerful voices trying to silence truth and punish dissent and weaponize justice for political gain,” she told supporters of the Democratic socialist NYC mayoral front-runner.
“We are witnessing the fraying of our democracy, the erosion of our system of government,” James grandiosely stated, describing the current state of politics as “a defining moment in our history.”
