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.
“Not guilty, judge, on both counts,” James said, pleading herself.
U.S. District Judge Jamar Walker set the initial trial date for Jan. 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.
James was released on his own recognizance following the conclusion of the hearing.
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. James successfully filed a lawsuit civil fraud case against Trump last year and is currently leading multiple lawsuits challenging his administration’s policies.
New York Attorney General Letitia James speaks to the media after pleading not guilty to charges of defrauding her mortgage lender, outside the U.S. District Court for the Eastern District of Virginia, in Norfolk, Virginia, on October 24, 2025.
Jonathan Ernst/Reuters
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.
After attorneys representing James filed a motion challenging Halligan’s appointment as illegal, Judge Walker ordered the motion to be consolidated with the effort already underway to disqualify her in the case against Comey, who was charged last month with making false statements to Congress, to which he pleaded not guilty.
Both James’ lawyers and the Justice Department supported the idea of consolidating the challenges, which will be considered by an out-of-district judge already appointed this week.
James, speaking outside the courthouse after his arraignment, said the justice system under President Trump has been “used as a tool of revenge” and is nothing more than a “vehicle of retribution.”
“I want to thank you for your support,” James said. “But this isn’t about me. Yeah, This is about all of us. Yes. And about our justice system, which has been turned into a weapon. “Against a justice system that has been used as a tool of revenge.”
“But my faith is strong. And my faith is that I have this faith in the justice system, in the rule of law,” James said.
Judge Walker, during the hearing, also briefly discussed a motion by James’ attorneys ordering Halligan not to make any more out-of-court disclosures to the media following revelations that she sent Signal messages to a reporter about James’ case earlier this week.
Judge Walker noted that there was no request to sanction Halligan for the messages, and Roger Keller, the Justice Department prosecutor, said that if the government was required to keep a record of Halligan’s conversations with the media, then a similar requirement should be made of James given his statements to the media.
James’ attorney, Abbe Lowell, argued that there was a big difference between James making public statements under his First Amendment rights and Halligan having case discussions with a journalist about a coded request with a disposal schedule.
Judge Walker set a deadline of November 1 for James to make his first submission on his vindictive prosecution claim.
The charges James faces accuse her 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.
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.
