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New York Attorney General Letitia James pleaded not guilty Friday in federal court in Norfolk, Virginia, to two felony charges of bank fraud and making false statements to a financial institution.
The charges against James stem from a home she purchased in 2020 in Norfolk, Virginia. Prosecutors allege James misled the bank about the nature of the residence in order to obtain more favorable loan terms.
The indictment alleges that James misrepresented the financial institution's claims that it would be her second home and rent it to a family.
According to the indictment, the lower interest rate will save James nearly $19,000 over the life of the 30-year loan.
Letitia James to be arraigned in Virginia on federal bank fraud charges related to 2020 home purchase
New York State Attorney General Letitia James and President Donald Trump (Getty Images)
James entered a not guilty plea in person before U.S. District Judge Jamal K. Walker.
The case is being represented by defense attorneys Abbe Lowell and Andrew Bosse, a former assistant U.S. attorney based in Norfolk who served as chief of the office's criminal division.
James' arraignment is the latest in a series of indictments against the president's political enemies, despite objections from career prosecutors, some of whom have since been fired or resigned.
James, a Democrat, ran for attorney general in 2016 largely on a vow to investigate Trump's conduct and business, drawing Trump's longstanding ire.
She also successfully obtained a $450 million civil fraud case against him last year, although an appeals court later dismissed the financial penalty portion of the case.
“This is nothing but a continuation of the president's desperate efforts to weaponize our justice system,” James said in a statement after the indictment.
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She added: “These accusations are baseless and the president's own public statements make clear that his only goal is political revenge at all costs.”
Her indictment, like that of former FBI Director James Comey, was presented to the grand jury by former White House aide Lindsay Harrigan, who President Donald Trump appointed last month to serve as acting U.S. attorney for the Eastern District of Virginia.
Trump said in September that he would appoint Harrigan as the top prosecutor for the Eastern District of Virginia, replacing interim attorney Erik Siebert, who resigned under pressure to prosecute Comey and James.
“No one is above the law. The charges alleged in this case were intentional criminal conduct and a serious breach of the public trust,” Harrigan said in a statement. “The facts are clear, the law is clear, and we will continue to watch to ensure justice is served.”
After her arraignment, she will likely file a motion to dismiss her case as retaliatory and selective prosecution, following a similar step taken by Comey's legal team in Alexandria earlier this week.
She will also file a motion to dismiss the case, arguing that her attorneys believe Halligan's appointment to secure her prosecution was unlawful.
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Her lawyer Lowell described the case against her as “undue political retaliation” and vowed they would “fight these charges in every proceeding permitted by the law.”
The Justice Department did not immediately respond to Fox News' request for comment on the case or whether Halligan or Keller would be joined by any other federal prosecutors in the Eastern District of Virginia.
James told reporters outside court on Friday that the Justice Department was being used as a tool of “revenge” and a “tool of retribution.”
“But my faith is strong,” she told a crowd gathered outside the courthouse in Norfolk, Virginia, hours earlier. “I have faith in the justice system.”
“Never cower, break or bend. So have no fear today,” she said. “I won't be intimidated.”
Judge Walker set a trial date for January 26, 2026 and ordered the parties to return to court for a motions hearing in early December.
Breanne Deppisch is a national political correspondent for Fox News Digital, covering the Trump administration, focusing on the Justice Department, FBI and other national news. She has previously reported on national politics for The Washington Examiner and The Washington Post, and published bylined articles in Politico, the Colorado Gazette and other magazines. You can send Breanne tips at [email protected] or follow her on X @breanne_dep.