New York Attorney General Letitia James, appearing in federal court in Norfolk, Virginia, pleaded not guilty Friday to charges of alleged mortgage fraud, after she was indicted earlier this month by President Donald Trump’s hand-picked U.S. attorney.
James pleaded not guilty to one count of bank fraud and one count of making false statements to a financial institution.
“You are not guilty, judge, on both counts,” James said, pleading herself.
The judge in the case set an initial trial date for January 26, to which both the government and defense agreed.
The trial is expected to last “no more” than two weeks, government lawyers said, estimating they will call between 8 and 10 witnesses.
Acting U.S. Attorney Lindsey Halligan, who Trump appointed just days after asking his attorney general to act “NOW!!!” to prosecute James and other political enemies, he secured the indictment against James on October 9.
Halligan was appointed federal prosecutor by Trump after Trump overthrown his predecessor, Erik Siebert, who sources said had expressed doubts internally about bringing cases against James and former FBI Director James Comey.
New York Attorney General Letitia James remains silent during a news conference on October 21, 2025 in New York City.
Michael M. Santiago/Getty Images
James, who successfully brought a civil fraud case against Trump last year and is leading multiple lawsuits challenging his administration’s policies, she was accused of committing mortgage fraud related to a home she purchased in 2020.
According to the indictment, James falsely described the property as a second home to obtain an advantageous mortgage rate, but used it as an “investment property,” rented to a family of three. The indictment alleged that James charged thousands of dollars in rent and would have saved $17,837 over the life of the mortgage compared to a loan at a higher rate.
“No one is above the law. The charges alleged in this case represent intentional criminal acts and tremendous violations of the public trust,” Halligan said in a statement announcing the charges. “The facts and law in this case are clear and we will continue to follow them to ensure justice is served.”
But in an internal memo sent to Siebert in September, prosecutors said James bought the house in Norfolk, Virginia, for his great-niece and immediately allowed her and her children to begin living in the house rent-free. sources told ABC News. Prosecutors met with James’ niece, who claimed that she had never signed a lease, had never paid rent on the house and that James had often sent her money to cover some of the expenses, the memo concluded, according to sources familiar with its contents.
“It’s baseless,” James said of this month’s charges. “It’s nothing more than compensation, compensation for doing my job.”
Lawyers representing James filed a motion Thursday indicating their intention to challenge Halligan’s appointment as illegal. A similar motion challenging Halligan’s appointment was filed in the case against Comey.
James’ defense attorneys also filed a motion with the court to enforce rules prohibiting leaks from prosecutors, after a Monday report by Anna Bower of the online publication “Lawfare” contained Signal text messages exchanged between Halligan and Bower in the days after charges were filed against James.
“In initiating this contact, Ms. Halligan, the lead prosecutor in this case as of the date of this filing, commented on the credibility and overall strength of the evidence presented to the grand jury,” the document states.
James’ lawyers argue in their filing that Halligan’s comments to Bower run counter to the Federal Rules of Criminal Procedure, the Code of Federal Regulations, local court rules, the Department of Justice Manual and rules of ethical and professional responsibility.
James’ indictment on Oct. 9 came between the indictments of Comey and Trump’s former national security adviser, John Bolton, amid what critics call the Trump impeachment. payback campaign against his supposed political enemies.
Vice President JD Vance has said that such prosecutions are “driven by law and not politics.”
If convicted, James faces a maximum of up to 30 years in prison per count, a fine of up to $1 million for each count, and forfeiture of property.
