Letitia James pleads not guilty in mortgage fraud case

New York Attorney General Leticia James has pleaded not guilty to federal charges of bank fraud and making false statements to a financial institution.

James appeared in court in U.S. District Court in Norfolk, Virginia, on Friday during a brief hearing where her legal team requested a speedy trial.

Speaking in court after the charges, James accused Trump of using the court system as a “vehicle for retribution” against her and other critics.

She had previously brought charges against others he considered political enemies.

“There is no fear today,” she said as supporters outside cheered her on. On Friday, a judge scheduled the case for January 26.

The federal government alleges that James bought a three-bedroom home in Norfolk using a mortgage loan that required her to use the property as her second home and did not allow shared ownership or “time sharing” of the home.

The indictment alleges that the property “was not occupied or used” by James as a second home, but instead was “used as a rental investment property” and was rented out to a family of three.

The “misrepresentation” allowed James to get favorable loan terms that would not have been available for an investment property, prosecutors said.

Sources said American media that James bought the home for her great-niece in 2020 and that the relative never paid rent on the home.

James’ legal team also said in court filings this week that it plans to challenge the appointment of U.S. Attorney Lindsay Halligan to James’ case.

Trump appointed Ms Halligan, his former personal lawyer, to oversee the case after another US attorney, Eric Siebert, resigned. Siebert was reportedly fired after telling the Justice Department that he did not find enough evidence to charge James.

James’ lawyers also filed a motion to dismiss the case on the grounds that it was “vindictive.”

She is one of several Trump critics to be investigated or face criminal charges in recent weeks. The Justice Department has accused Trump’s former FBI director James Comey of making false statements to Congress.

Trump’s former national security adviser, John Bolton, has been accused of sending and knowingly withholding information about national defense.

Last month, Trump called on Attorney General Pam Bondi on his social media site Truth Social to bring charges against his political opponents.

“We cannot delay any longer, it kills 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 found liable for falsifying records to secure better loan deals, resulting in a $500m (£376m) fine.

The punishment was thrown out by an appeals court, which called the fine excessive, although it confirmed that Trump was responsible for fraud.