A single-page mortgage form signed by New York Attorney General Letitia James has become the focal point of a federal criminal case that could send her to prison for up to 60 years.
The document in question — a “second home rider” attached to her mortgage and obtained by The Post — contains James’s written assurance that the property would serve as a secondary residence she would primarily occupy.
That statement, according to prosecutors, allowed James to lock in a more favorable loan rate from Old Virginia Mortgage/Annie Mac, ultimately saving her close to $19,000 in mortgage costs.
In reality, however, The New York Times reported that shortly after the deal closed, James’s grandniece, Nakia Thompson — who has a long criminal history — moved into the home and began living there.
Federal prosecutors allege that James’s actions amount to bank fraud and false statements to a financial institution. The strength of the case, they note, may depend on whether Thompson paid rent while residing there.
Thompson told a federal grand jury in June that she lived in the three-bedroom, one-bath house rent-free, according to the Times.
The mortgage rider, dated August 17, 2020, bears James’s signature and spells out detailed restrictions on how the property was to be used.
Among the clauses in the agreement was a promise that James would “occupy and use” the house as a second home and retain “exclusive control” over who could live there.
It further required that the property remain “primarily” for her personal use for at least one year following purchase.
The document explicitly barred any “shared ownership arrangement” that would require her to rent it out or grant a management firm — or anyone else — control over occupancy, reiterating that it would be used “primarily” for her own purposes.
Another clause stated that if she or anyone acting on her behalf provided “inaccurate information or statements” about the property’s use as a second home, she could be found in default on the $109,600 loan.
The government’s case appears to hinge on Thompson’s sworn claim that she did not pay rent.
According to the indictment, James submitted tax records showing she spent zero days at the house while reporting thousands of dollars in rental income, as well as deductions for property-related expenses.
Legal analysts noted that Thompson’s criminal background could complicate matters for James.
The 36-year-old grandniece is currently wanted in North Carolina, where she admitted to assaulting a police officer in 2011, and she has multiple prior convictions in Virginia for offenses including grand larceny and possession of burglary tools.
If the defense calls Thompson to testify, prosecutors are expected to highlight her criminal history to undermine her credibility, explained former federal prosecutor Neama Rahmani.
“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.
The charges, filed last week in the Eastern District of Virginia, accuse James of falsely certifying that the home “was not occupied or used by James as a secondary residence and was instead used as a rental investment property.”
Prosecutors say her misrepresentation helped her qualify for a 3% mortgage rate — a discount that, according to U.S. Attorney Lindsey Halligan, saved her $18,933 in interest and seller concessions.
James has publicly rejected the allegations, claiming they are politically motivated attacks orchestrated by the Trump administration.
Appearing at a rally for Democratic socialist mayoral candidate Zohran Mamdani in Washington Heights on Monday, James struck a defiant tone.
“We see powerful voices trying to silence truth and punish dissent and weaponize justice for political gain,” she told the cheering crowd.
“We are witnessing the fraying of our democracy, the erosion of our system of government,” James declared, calling the moment “a defining moment in our history.”
{Matzav.com}