Cryptic crossword clue
Criminal residing in nasty little community 7

The most common and most likely answer to this crossword clue is the 7 letter word VILLAGE

I've seen this crossword clue in The Daily Telegraph
V
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L
L
A
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Buddy explains!

The straight part
We know that "little community" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case little community = village.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does VILLAGE mean?

VILLAGE noun
  1. A rural habitation of size between a hamlet and a town.
  2. A rural habitation that has a church, but no market.
  3. A planned community such as a retirement community or shopping district.
  4. A gated community.

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