Reports further indicate that Cayla Thompson-Hairston and her sister, Nakia Thompson, live in homes owned by Letitia James in Norfolk, Virginia. Nakia, 36, has a lengthy arrest history and is currently a fugitive with active warrants in North Carolina. Both sisters’ residence at James’s properties has drawn federal attention as investigators examine potential mortgage fraud linked to those addresses.
According to federal prosecutors, James allegedly made false statements on mortgage documents related to one of the Virginia homes. Court filings claim she purchased a property in 2020 for $137,000, declaring it as a second home she intended to use primarily. However, investigators allege she instead allowed her niece to live there rent-free, effectively turning it into a rental property — a misrepresentation that may have resulted in a $19,000 financial advantage through lower mortgage rates.
James has denied all allegations, maintaining her innocence as the investigation continues. Meanwhile, court documents reveal that Nakia Thompson testified before a grand jury, confirming she lived in one of the properties without paying rent. Prosecutors have also accused James of listing her father as her husband on loan documents, a move that may have further influenced the loan’s approval.
If convicted, Letitia James could face up to 60 years in prison on charges of federal bank fraud and making false statements. The investigation remains ongoing, with prosecutors expected to release additional findings in the coming weeks.
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