New York Attorney General Letitia James pleaded not guilty Friday to federal bank fraud charges, denouncing the case as a politically motivated attack ordered by President Donald Trump.
James, a longtime political foe of the president, entered her plea before U.S. District Judge Jamar K. Walker, who set a trial date for Jan. 26. The judge estimated the proceedings would last about five days and released James on her own recognizance.
The indictment accuses James, a Democrat, of falsely claiming a Norfolk, Virginia, home as her second residence to obtain favorable mortgage terms — allegedly saving about $50 a month — and misrepresenting that the property was rented to a family. She faces one count each of bank fraud and making false statements to a financial institution.
The political news that affects your wallet, your rights and your vote, broken down in plain language. Free in your inbox.
James’ legal team said they would move to dismiss the case, calling it “selective and vindictive prosecution.” A hearing on that motion is scheduled for Dec. 5.
Political undertones and key players
The indictment was signed by Lindsey Halligan, Trump’s former personal lawyer and the acting U.S. Attorney for the Eastern District of Virginia. Halligan’s appointment followed a public demand from Trump that Attorney General Pam Bondi take action against several of his critics, including James, former FBI Director James Comey, and former National Security Adviser John Bolton.
James, greeted by cheering supporters outside the courthouse, said the case reflected a broader abuse of power.
“This is not about me,” she said. “This is about all of us — about a justice system that’s been weaponized and used as a tool of revenge.”
She added that she had “no fear” and expressed faith in “the rule of law.”
Part of a broader pattern of prosecutions
James is the third prominent Trump critic to face federal charges in as many weeks. Comey and Bolton were each arraigned earlier this month, both pleading not guilty.
The indictments followed Halligan’s swearing-in, which occurred just days after Trump’s social media post calling for investigations into his adversaries.
NBC News reported that the cases against James and Comey were previously dormant under former U.S. Attorney Erik Siebert, who resigned after Trump demanded his removal. Federal agents had reportedly questioned whether there was sufficient evidence to pursue convictions.
Comey has since challenged the legality of Halligan’s appointment — a claim James’ attorneys said Thursday they will join. Judge Walker said the motions will be consolidated with Comey’s and heard on Nov. 13 before a South Carolina judge.
A long and bitter feud
James sued Trump and his company in 2022, accusing them of inflating his net worth by billions to secure favorable loans and insurance rates. A state court found Trump liable for fraud last year and imposed a $464 million penalty. That amount was later thrown out on appeal as “excessive,” though the fraud finding was upheld.
Trump has denied wrongdoing in the case and accused James of political bias. James, for her part, has maintained that her pursuit of Trump was about accountability — and on Friday said his actions prove her point.
“His only goal is political retribution at any cost,” she said in a statement.
