New York Attorney General Letitia James has pleaded not guilty to federal mortgage fraud charges in a controversial case pushed by President Donald Trump.
On Friday, James made his first court appearance after the Trump administration accused him of misrepresenting his real estate investments to obtain better loans.
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She faces one count each of bank fraud and making a false statement to a financial institution, both of which carry a maximum penalty of 30 years in prison.
Her hearing on Friday was held in federal court in Norfolk, Virginia. When asked about his plea, James replied, “Judge, I’m not guilty on both counts.”
Her trial is scheduled to begin on January 26th.
Speaking to supporters outside the courtroom afterward, James characterized the incident as President Trump’s attempt to use the legal system against his political opponents.
He is the third critic of Trump to face criminal charges in the past month, following former FBI Director James Comey and former National Security Adviser John Bolton.
“This is not about me. This is about all of us. And it’s a judicial system that has been weaponized, a judicial system that has been used as a tool of revenge,” James told the crowd outside the courtroom.
Paraphrasing the Bible, she reaffirmed her belief that justice will prevail.
“There is no fear today. There is no fear, there is no fear,” she said, leading the crowd in chants. “For we believe that justice comes down like waters, and righteousness like a mighty stream.”
She was indicted by a grand jury earlier this month.
The attorney general has long been a target of President Trump’s ire since his first term.
When James campaigned for New York’s top prosecutor in 2018, he denounced Trump as an “illegitimate president.”
Later, in her role as attorney general, she brought a successful civil suit against Trump, accusing him of defrauding banks and investors by vastly inflating his assets.
In February 2024, a judge initially ordered President Trump to pay $355 million in damages as a result of the lawsuit, but that amount was later dismissed as excessive.
Trump has consistently denied any wrongdoing and said that incident and others he faced were politically motivated.
When Trump returned to office for a second term in January, critics feared he would use the power of the post to retaliate against perceived opponents.
On September 20, he publicly called on the Justice Department to take action against James, Comey, and a third California senator who has not yet been indicted, Adam Schiff.
“We cannot afford to delay any longer. This will damage our reputation and our credibility,” Trump said in a message to Attorney General Pam Bondi on his online platform Truth Social. “Justice must be served now!!!”
Comey was indicted five days later, on September 25th.
Prior to the indictment, a longtime prosecutor named Eric Siebert was fired after he reportedly questioned the merits of the case against Comey and James.
He was replaced by Lindsey Harrigan, a former Trump White House aide with no experience as a federal prosecutor.
Mr James’ lawyer said he would object to Mr Harrigan’s appointment. Mr. Harrigan personally signed the indictment against both Mr. James and Mr. Comey, which is highly unusual for a senior U.S. lawyer.
The charges in Friday’s case focus on James’ purchase of a home in Virginia. The Trump Justice Department argued that James intended to use the home as a second home, but instead rented it out.
This allowed her to obtain a more favorable mortgage rate, prosecutors said.
But James argued that the latest charges are “nothing more than a continuation of the president’s desperate weaponization of our justice system.”
