NORFOLK, Virginia — New York Attorney General Letitia James pleaded not guilty on Friday to federal charges of bank fraud and making false statements to a financial institution, rejecting prosecutors’ claims that she lied on a 2020 mortgage application to obtain favorable loan terms for a Virginia property.
James, 67, appeared before U.S. District Judge Jamar Walker, who was appointed to the federal bench by former President Joe Biden, during a morning arraignment at the Walter E. Hoffman U.S. Courthouse in Norfolk. The proceeding marked a dramatic turn for the New York Democrat, who campaigned on and built her political profile by bringing a civil fraud lawsuit against President Donald Trump and his business prior to his reelection.
A federal grand jury indicted James earlier this month, accusing her of falsely claiming a Norfolk home was her personal second residence when it was instead rented to a family of three, including one relative who is wanted by North Carolina authorities. The alleged misrepresentation, prosecutors say, allowed her to save about $50 per month over the life of the loan and resulted in her obtaining roughly $19,000 in ill-gotten gains.
The case is being prosecuted by U.S. Attorney Lindsey Halligan, the interim top prosecutor for the Eastern District of Virginia, and Roger Keller, a Missouri-based federal attorney detailed to assist in public corruption and financial crime cases.
James has called the charges “baseless” and politically motivated and alleged the case is retribution against her by the president, pointing to Trump’s Truth Social post last month urging Attorney General Pam Bondi to “take action” against her and two other longtime critics.
Outside the courthouse in Norfolk, just over five minutes from the home at the center of the indictment, there was scant support for the New York attorney general. Local police and government vehicles blocked off the streets surrounding the courthouse, and the people standing outside were mostly local and national media reporters.
Her indictment came one day after former FBI Director James Comey was charged in the same district with lying to Congress and obstructing an investigation. Halligan’s office is also overseeing that case. Both Comey and former national security adviser John Bolton, who was arraigned last week, have pleaded not guilty.
LETITIA JAMES TO BE ARRAIGNED IN VIRGINIA ON FEDERAL MORTGAGE FRAUD CHARGES
James and her attorneys filed a notice Thursday that they intend to challenge the legality of Halligan’s appointment, echoing arguments raised by Comey’s defense team.
If convicted, James faces up to 30 years in prison and a $1 million fine, though first-time offenders typically receive far lesser penalties under federal sentencing guidelines.