New York Attorney General Letitia James pleaded not guilty on Friday in federal court to one count of bank fraud and one count of making false statements to a financial institution.
The indictment alleges that in 2020, James purchased a property in Norfolk, Virginia, for approximately $137,000, and falsely represented it as a second home—rather than an investment rental—to secure more favorable mortgage terms. Prosecutors claim the misrepresentation resulted in savings of roughly $19,000 over the life of the loan.
James has described the charges as “baseless” and maintained that she will vigorously defend herself while continuing in her role as New York Attorney General.
James, a Democrat and long-time critic of President Donald Trump, characterized the prosecution as political retaliation—saying the justice system is being used as “a tool of revenge.”
She and her legal team plan to challenge the legitimacy of the prosecution, arguing that the interim US Attorney, Lindsey Halligan, lacks proper authority and that career prosecutors previously declined to pursue charges due to insufficient evidence.
The case emerges amid broader allegations over perceived politicization of federal prosecutions, especially of individuals who have challenged or investigated President Trump.
Approximately two weeks ago, former FBI Director and longtime critic of Trump, James Comey, was indicted on allegedly lying to Congress. In Comey’s motion to dismiss, he cited the importance of deterring “the government from using unlawful appointments to effectuate retaliation against perceived political opponents.”
Additionally, Federal Reserve Governor Lisa Cook and Senator Adam Schiff, are also subjects of ongoing criminal investigations and have similarly maintained their innocence.
Judge Jamar K. Walker has set the trial date for January 26, 2026.