Letitia James pleads not guilty in mortgage fraud case
New York Attorney General Letitia James has pleaded not guilty to federal charges of bank fraud and making false statements to a financial institution.
James appeared in U.S. District Court in Norfolk, Virginia, on Friday in a brief hearing in which his legal team asked for a speedy trial.
Speaking outside the courthouse after the arraignment, James accused Trump of using the justice system as a “vehicle for retaliation” against her and other critics.
She had already filed complaints against other people he considers political enemies.
“There is no fear today,” she declared, to the applause of away supporters. On Friday, a judge set a trial date for January 26.
The federal government alleges that James purchased a three-bedroom home in Norfolk using a mortgage that required him to use the property as a second home and did not allow for shared ownership or “time sharing” of the home.
The indictment claims the property “was not occupied or used” by James as a second home, but rather was “used as a rental investment property” and was rented to a family of three.
The “misrepresentation” allowed James to obtain favorable loan terms that would not have been available for an investment property, prosecutors allege.
Sources told US media that James bought the house for his great-niece in 2020 and that the relative never paid rent for the house.
James’ legal team also said in court filings this week that it plans to challenge the appointment of U.S. Attorney Lindsey Halligan to James’ case.
Trump appointed Ms Halligan, his former personal lawyer, to oversee the case after the resignation of another US Attorney, Erik Siebert. Siebert was reportedly ousted after telling the Justice Department he didn’t find enough evidence to charge James.
James’ attorneys also filed a motion to dismiss the case on the grounds that it is “vindictive.”
She is one of several Trump critics who are under investigation or faced criminal charges in recent weeks. The Justice Department has accused James Comey, former director of Trump’s Federal Bureau of Investigation, of making false statements to Congress.
Former Trump national security adviser John Bolton is accused of willfully sending and withholding national defense information.
Trump last month called on Attorney General Pam Bondi on his social media site Truth Social to press charges against his political opponents.
“We cannot wait any longer, this is destroying our reputation and credibility,” he wrote.
James filed a civil fraud suit against Trump and his company, the Trump Organization, in 2022. Trump was later convicted of falsifying records to get better loan deals, leading to a $500 million (£376 million) fine.
The sanction was overturned by an appeals court, which found the fine excessive, while asserting that Trump was responsible for fraud.
