New York Attorney General Letitia James pleads not guilty to federal bank fraud charges

New York Attorney General Letitia James appeared in federal court in Norfolk, Virginia, on Friday to plead not guilty to bank fraud charges.

The indictment accuses James of misrepresenting a house she bought in Norfolk in 2020 to get a mortgage with better terms. Prosecutors allege she claimed it as a second home, which qualified her for a lower interest rate and larger seller credit, but instead rented it to a family member, violating the mortgage agreement.

The alleged savings from this misrepresentation were $18,933 over the life of the loan. James bought the home for $137,000 and borrowed $109,600.

US District Judge Jamar Walker set the trial for January 26, estimating it would last five days. James was released on her own recognizance.

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The prosecution is led by Lindsey Halligan, a Trump-appointed interim U.S. attorney. James’ attorneys said they plan to argue the case is a selective and politically motivated prosecution, with a hearing scheduled for December 5.

James was met by cheering supporters as she left the courthouse. She said, “This is not about me. This is about all of us, and a justice system which has been weaponized and used as a tool of revenge against individuals who simply did their job. I have no fear. I have this belief in the justice system and the rule of law.”

The grand jury charged James with one count of bank fraud and one count of making false statements to a financial institution. The indictment came weeks after former President Donald Trump called for action against her and other political opponents.

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James previously sued Trump and his company for civil fraud in 2022, accusing them of submitting misleading financial statements to banks and insurers, inflating his net worth by billions, and obtaining loans and insurance at favorable rates. Trump was found liable for fraud and hit with a $464 million judgment, though a state appeals court later reduced the penalty, calling it excessive. Trump denies wrongdoing and is appealing the case.

James is the third prominent Trump critic charged federally in recent weeks, after former National Security Adviser John Bolton and ex-FBI Director James Comey, both of whom also pleaded not guilty.

Her attorneys plan to challenge Halligan’s appointment as U.S. Attorney, joining Comey’s pending motion. A hearing on this is scheduled for November 13.