Letitia James pleads not guilty in mortgage fraud case

New York Attorney General Letitia James has pleaded not guilty to federal charges of bank fraud and making false statements to a financial institution.

James appeared in court Friday during a brief hearing in US District Court in Norfolk, Virginia, where her legal team asked for a speedy trial.

Speaking outside the courthouse after the arrest, James accused Trump of using the justice system as a “vehicle of retribution” against her and other critics.

She accused others she previously considered political enemies.

“There is no fear today,” she said, as supporters outside cheered. On Friday, the judge fixed January 26 as the trial date.

The federal government alleges that James bought a three-bedroom home in Norfolk using a mortgage that required her to use the property as her secondary residence and did not allow for shared ownership or “timesharing” of the home.

The indictment claims that James “did not occupy or use” the property as a secondary residence, but instead “used it as a rental investment property” and was being rented out to a family of three.

The “misrepresentation” allowed James to get favorable loan terms that weren’t available for investment properties, prosecutors claim.

Sources said US media James bought a house for her great-granddaughter in 2020 and the relative never paid the rent.

James’ legal team also said in a court filing this week that they plan to challenge the appointment of U.S. Attorney Lindsay Halligan to James’ case.

Trump appointed his former personal attorney, Ms. Halligan, to oversee the case after the second US attorney, Eric Siebert, resigned. Siebert was fired after telling the Justice Department there wasn’t enough evidence to charge James.

James’ attorney is also filing a motion to dismiss the lawsuit as “retaliation.”

She is among Trump critics who are under investigation or have faced criminal charges in recent weeks. The Justice Department charged Trump’s former Federal Bureau of Investigation director, James Comey, with making false statements to Congress.

Trump’s former National Security Adviser John Bolton has been accused of leaking and knowingly withholding national defense information.

Trump last month called on his social media site Truth Social for Attorney General Pam Bondi to indict his political opponents.

“We can no longer afford to delay, it is destroying our reputation and credibility,” he wrote.

James brought a civil fraud suit against Trump and his company, the Trump Organization, in 2022. Trump was later found guilty of falsifying records to secure better loan deals, leading to a $500m (£376m) fine.

The fine was thrown out by an appeals court, which called it excessive, but maintained that Trump was liable for fraud.