NY Attorney General James Pleads Not Guilty to US Charges (3)

New York Attorney General Letitia James pleaded not guilty on Friday to criminal charges that she committed bank fraud and made false statements to a lender when she bought a house in Norfolk, Virginia, five years ago.

James is contesting charges brought earlier this month by a prosecutor whom President Donald Trump abruptly installed after her predecessor resigned under pressure. When asked if she understood the charges and her rights, James said, “Yes Judge.”

US District Judge Jamar Walker, who is overseeing the case, set a Jan. 26 trial date. James was released on her own recognizance.

The New York attorney general, who won a contentious civil fraud trial against Trump and his family company in 2024, is one of several high-profile individuals charged in recent weeks by the Justice Department, after Trump demanded legal action against some of his biggest perceived political enemies.

Letitia James, center, speaks outside the Walter E. Hoffman United States Courthouse following an arraignment hearing in Norfolk, Virginia, on Oct. 24.

Photographer: Win McNamee/Getty Images

“We can’t delay any longer, it’s killing our reputation and credibility,” Trump said in a Sept. 20 message to Attorney General Pam Bondi that was posted on social media. “JUSTICE MUST BE SERVED, NOW!!!”

Within a week of Trump’s post, Lindsey Halligan, the new interim US Attorney for the Eastern District of Virginia, secured an indictment against former FBI Director James Comey, who is accused of lying to Congress and obstructing a congressional proceeding. Halligan, who was installed in the position by Trump and is one of his former personal attorneys, then secured charges against James on Oct. 9.

“This is not about me,” James told supporters outside the courthouse Friday. “This is about all of us. It is about a justice system that has been weaponized. A justice system which has been used as a tool of revenge against those who simply did their job and stood up for the rule of law.”

Read More: What Is the Mortgage Fraud Letitia James Is Charged With?

A White House spokesperson referred questions about the James case to the Justice Department, which declined to comment.

In a court filing Friday, James moved to dismiss the charges against her, saying Halligan’s appointment was improper and that she had no authority to bring the indictment. Comey has made a similar claim. Judge Walker said he’d allow James’ motion to be combined with Comey’s, which is set for a hearing Nov. 13.

WATCH: New York Attorney General Letitia James speaks after she pleaded not guilty on Friday to criminal charges.

Source: Bloomberg

Last week, the US attorney for Maryland indicted John Bolton, a former Trump national security adviser who has become a fierce critic of the president. Bolton is accused of mishandling classified information. Comey and Bolton have pleaded not guilty.

The US Justice Department’s probe into James stemmed from claims by Federal Housing Finance Agency Director Bill Pulte that she may have committed mortgage fraud based on the residence status she listed on loan applications.

The indictment alleges that to get favorable mortgage terms, James falsely represented that a Norfolk property she bought in 2020 would be used as a secondary residence. Prosecutors claim that James actually used it as an investment property that she rented to a family, and didn’t intend to occupy it.

James has been a frequent target of criticism by Trump, particularly after she filed a civil fraud case against him in state court in 2022, two years before he won a second term as president. Trump, his real estate company and his sons Donald Jr. and Eric Trump, who were also sued, lost at a trial that resulted in a total penalty of $464 million.

In August, a New York appeals court struck down the fine as unconstitutionally “excessive,” but upheld the judge’s finding that Trump and the other defendants were liable for fraud. Both sides have appealed, escalating the case to the state’s highest court.

Trump Target

Trump has made his disdain for James known for years, particularly in recent months.

In a Sept. 20 post on social media, the president blasted James alongside Comey and US Senator Adam Schiff of California. “What about Comey, Adam ‘Shifty’ Schiff, Leticia??? They’re all guilty as hell,” Trump said in the post. In an Oct. 4 post on Truth Social, Trump called James “scum” and a “Complete and Total Disaster” who should be removed from office. And during the trial of her fraud case against him, Trump frequently called her “racist” without explanation.

James continues to be a thorn in Trump’s side in her role as New York attorney general. She has led or joined in dozens of lawsuits by Democratic-led states challenging Trump’s policies, from his global tariffs to his effort to restrict automatic “birthright” citizenship.

Letitia James speaks outside the Walter E. Hoffman United States Courthouse following an arraignment hearing in Norfolk, Virginia, on Oct. 24.

Photographer: Win McNamee/Getty Images

“I will not be deterred,” James told supporters Friday. “I will do my job each and every day. And that’s why I’m headed back to New York because there’s work to be done.”

Just last week James won a lawsuit forcing the Trump administration to restore nearly $34 million in federal counter-terrorism funding for New York City’s subway authority, which she accused the government of trying to strip away to punish the state.

The case is US v. James, 2:25-cr-122, US District Court, Eastern District of Virginia (Norfolk).

(Updates with Justice Department declining to comment on case.)

--With assistance from Erik Larson and Catherine Lucey.

To contact the reporters on this story:
Chris Strohm in Washington at cstrohm1@bloomberg.net;
Jimmy Jenkins in Washington at jjenkins199@bloomberg.net

To contact the editors responsible for this story:
Sara Forden at sforden@bloomberg.net

Steve Stroth

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