New York Attorney General Letitia James is under federal investigation for alleged mortgage fraud tied to properties she owns in Norfolk, Virginia—where several family members with criminal records reportedly reside, according to documents obtained by the New York Post.

Among the relatives is James’ 21-year-old grand-niece, Cayla Thompson-Hairston, who was charged in April 2024 with attempting to buy a firearm despite a prior felony charge for malicious wounding. The charge was later reduced to a misdemeanor through a plea deal, leading prosecutors to drop the firearm case.

Thompson-Hairston maintains an active online presence, including an OnlyFans account and social media profiles where she posts explicit content and photos flaunting cash with her boyfriend. She has also shared her pregnancy journey publicly. Court documents reveal she became involved in criminal activity at age 15, alongside her sister Nakia Thompson, 36, who reportedly has multiple arrest warrants and is a fugitive from North Carolina authorities.

Both women allegedly live rent-free in homes owned by James. Federal prosecutors are investigating whether James falsely claimed one property as a “second home” on a 2020 mortgage application, despite moving Nakia Thompson into the house shortly after the purchase. This misrepresentation allegedly allowed James to secure a lower interest rate, resulting in a $19,000 financial benefit.

James, who denies wrongdoing, faces up to 60 years in prison if convicted on charges including bank fraud and false statements. Investigators also claim she misrepresented her marital status to obtain better loan terms. A federal grand jury continues to review the case.