NewYork (BN24) – New York Attorney General Letitia James pleaded not guilty Friday to federal mortgage fraud charges, accusing President Donald Trump’s administration of using the justice system “as a tool of revenge” against political opponents.
James entered her plea in federal court in Norfolk, Virginia, setting the stage for a politically charged courtroom clash between the Republican president and one of his most prominent Democratic critics. The indictment accuses James of lying on mortgage documents to secure favorable loan terms when purchasing a modest home in Norfolk, where she has family ties.
“My faith is strong, and I have this belief in the justice system and the rule of law, and I have a belief in America,” James said after the hearing. Smiling as she exited the courthouse to chants of “We stand with Tish!” from supporters, she added, “There’s no fear today.”
James, who brought the landmark civil fraud case against Trump that led to a half-billion-dollar judgment against him before it was partially overturned on appeal, said her indictment is political payback. “This is about a justice system being used as a weapon against those who simply did their job and stood up for the rule of law,” she told reporters.
The indictment charges James with bank fraud and making false statements to a financial institution. Prosecutors allege that when purchasing her Norfolk home in 2020, she falsely claimed it would serve as a second residence under a “second home rider” clause, but instead rented it to tenants, enabling her to obtain better loan rates typically unavailable for investment properties.
James’ attorney, Abbe Lowell, said the defense would move to dismiss the case as a “vindictive prosecution” brought at the president’s direction. A trial date was set for Jan. 26.
Her indictment followed the resignation of Erik Siebert, the former U.S. attorney for the Eastern District of Virginia, who stepped down after Trump administration officials pressured him to pursue charges. Siebert was replaced by Lindsey Halligan, a former Trump lawyer and White House aide with no prior experience as a federal prosecutor. Halligan personally presented the case to a grand jury after being appointed by Attorney General Pam Bondi.
Trump had publicly urged Bondi to prosecute James and other political rivals, posting on his social media platform: “We can’t delay any longer, it’s killing our reputation and credibility. JUSTICE MUST BE SERVED, NOW!!!”
James is the third prominent Trump adversary to face federal charges this month, fueling criticism that the administration is weaponizing the Justice Department. Former FBI Director James Comey and ex–national security adviser John Bolton also pleaded not guilty to charges brought after Trump publicly called for their prosecution.
Defense lawyers for both James and Comey have challenged Halligan’s appointment, citing political interference. James’ legal team has also filed a motion to bar prosecutors from leaking information about the case after Halligan reportedly contacted a journalist through an encrypted messaging platform to discuss details of the prosecution.
The Justice Department is also investigating separate mortgage fraud allegations involving Democratic Sen. Adam Schiff and Federal Reserve Board member Lisa Cook, two other frequent Trump critics who deny wrongdoing.
James, who became New York’s first female attorney general in 2018, has been one of Trump’s most persistent legal adversaries. Her civil fraud lawsuit against Trump and his companies led to findings that he inflated the value of his real estate assets to deceive lenders and insurers. Although an appeals court later reduced the penalty, the case cemented James’ national profile — and made her a target of Trump’s ongoing attacks.
As the legal and political battlelines sharpen, James vowed to keep fighting. “I believe in the rule of law,” she said outside court. “And I will continue to do my job for the people of New York.”
