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 court in US District Court in Norfolk, Virginia, on Friday during a brief hearing where her legal team asked for a speedy trial.

Speaking outside of the courthouse after the arraignment, James accused Trump of using the justice system as a “vehicle of retribution” against her and other critics.

She previously brought brought charges against others he considers political enemies.

“There’s no fear today,” she said, as supporters outside cheered. On Friday, a judge set a trial date of 26 January.

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

The indictment claims the property “was not occupied or used” by James as a secondary residence, but instead was “used as a rental investment property” and was being rented to a family of three.

The “misrepresentation” allowed James to obtain favourable loan terms that would not have been available for an investment property, prosecutors claim.

Sources have told US media that James bought the home for her great-niece in 2020 and that the relative never paid rent for the home.

James’ legal team also said in court filings this week that they plan to challenge the appointment of US attorney Lindsey Halligan to James’ case.

Trump appointed Ms Halligan, his former personal attorney, to oversee the case after another US prosecutor, Erik Siebert, resigned. Siebert reportedly was ousted after he told the justice department he had not found sufficient evidence to charge James.

James’ attorneys also are filing 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 have faced criminal charges in recent weeks. The justice department charged Trump’s former Federal Bureau of Investigation director James Comey with making false statements to Congress.

Trump’s former national security adviser, John Bolton, is charged with sending and wilfully retaining national defence information.

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

“We can’t delay any longer, it’s killing our reputation and credibility,” he wrote.

James brought a civil fraud case against Trump and his company, the Trump Organization, in 2022. Trump was later found liable of falsifying records to secure better loan deals, leading to a $500m (£376m) fine.

The penalty was thrown out by an appeals court, which called the fine excessive, though it upheld that Trump was liable for fraud.