Letitia James Pleads Not Guilty to Fraud Charges in Politically Charged Case

New York Attorney General Letitia James, a long-time critic of former US President Donald Trump, pleaded not guilty in a federal court on Friday to charges of allegedly falsifying information on mortgage documents.

 

James, a Democrat who last year secured a civil fraud judgment of $450 million against Trump, is one of three prominent figures perceived as political adversaries whom the Republican president’s administration has charged within the past month -- alongside former FBI Director James Comey and ex-National Security Adviser John Bolton. All three deny any wrongdoing.

 

Appearing before a federal judge in Norfolk, Virginia, James entered her plea: “Not guilty, judge, to both counts.” The trial has been scheduled for 26 January 2026.

 

Outside the courthouse, supporters gathered with placards, chanting: “Hey hey! Ho ho! Let Letitia James go!” and “This is what democracy looks like.”

 

Addressing the crowd afterwards, a defiant James thanked her supporters, stating that the case represented the broader “weaponisation of the justice system.” She declared, “This is not about me -- it’s about all of us and about a justice system being used as a tool for revenge.”

 

James vowed she was unafraid, telling supporters, “Justice will flow like water and righteousness like a mighty stream.”

 

Trump has publicly pledged retribution against those he claims used the justice system to hinder his political comeback. He reportedly pressured Attorney General Pam Bondi to expedite proceedings and replaced the US attorney previously overseeing the James and Comey investigations with a political ally after the original prosecutor raised concerns about the strength of the evidence.

 

Two other Trump critics -- Democratic Senator Adam Schiff and Federal Reserve Board Governor Lisa Cook -- remain under criminal investigation and have denied wrongdoing.

 

A recent Reuters/Ipsos poll found that more than half of Americans, including one in three Republicans, believe Trump is using federal law enforcement to target his political rivals.

 

Last year, James won a $454.2 million penalty against Trump after a judge ruled that he had fraudulently inflated his net worth to deceive lenders. In August, a New York state appeals court overturned the financial penalty, which had risen to over $500 million with interest, but upheld the finding that Trump was liable for fraud. Both sides have appealed to the state’s highest court.

 

Sources close to Trump say his anger towards James intensified after he struggled to secure a bond to cover the judgment, risking the seizure of his assets.

 

James became a target of the Justice Department after Trump ally Bill Pulte, head of the Federal Housing Finance Agency, referred her for investigation, alleging she misrepresented information on her mortgage applications to obtain preferential loan terms -- a type of case rarely prosecuted federally, according to a Reuters analysis of court records.

 

The charges centre on a Norfolk, Virginia property James purchased in 2020 for around $137,000. Prosecutors allege she falsely stated she would use the home as a secondary residence, when in fact she rented it as an investment property, allowing her to secure a lower interest rate and save nearly $19,000 over the loan term.

 

James faces two criminal counts: bank fraud and making false statements to a financial institution.

 

Her defence team is seeking to have the charges dismissed, arguing that US Attorney Lindsey Halligan -- appointed by Trump to lead the case -- is unlawfully serving in her role. Similar claims have been raised by Comey, and both challenges will be heard together in a consolidated proceeding.

 

A hearing on the issue is scheduled for November 13 in Alexandria, Virginia, before a federal judge from South Carolina to avoid any perceived conflict of interest.

 

James’ lead counsel, Abbe Lowell, told the court that further motions may be filed, including claims of vindictive or selective prosecution, and that the charges may not align with the allegations set out in the indictment.

 

In an unusual move, a civil attorney from the Missouri US attorney’s office has been assigned to assist Halligan after prosecutors in her Virginia office reportedly questioned the strength of the case.

 

US District Judge Jamar Walker, appointed by former Democratic President Joe Biden, will preside over the trial.

 

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