Letitia James Pleads Not Guilty in Mortgage Fraud Case

New York Attorney General Letitia James has entered a not guilty plea in a mortgage fraud case, which comes shortly after President Trump encouraged the Justice Department to act against her.

In court, when asked about her plea, James stated, “Judge, I am not guilty on both counts.”

She was arraigned on Friday morning at a federal court in Norfolk, Virginia, presided over by U.S. District Judge Jamar Walker, who was appointed by former President Biden.

James is facing charges of bank fraud and making false statements to a financial institution. The allegations suggest she misrepresented her intentions regarding a home purchase in Virginia to secure better loan terms.

According to the indictment, James incorrectly claimed on mortgage documents that she would use the home in Norfolk as a secondary residence in 2020, while she rented it out to a family instead. This misrepresentation allegedly saved her nearly $19,000.

The case was prompted by the Federal Housing Finance Agency (FHFA), whose director, Bill Pulte, filed a complaint against her. Pulte has also lodged similar complaints targeting Sen. Adam Schiff and Federal Reserve Board member Lisa Cook.

James has previously accused Trump of civil fraud, targeting his business practices.

Last year, she secured a nearly $500 million judgment against Trump and his businesses after a New York judge ruled that they had inflated their net worth for financial benefits. However, an appeals court vacated this fine in August, although the case itself remains active. Both Trump and James have appealed the court’s decisions.

In response to her indictment, James emphasized her steadfast support for the lawsuit against Trump’s empire, arguing that it is founded on “facts and evidence, not politics.” She further claimed that this is not the case regarding the Justice Department’s actions against her.

“These charges are baseless, and the president’s public statements show that his main aim is political retribution,” she asserted.

Just weeks prior to James’ indictment, Trump sent a letter to Attorney General Pam Bondi, urging swift action against his political adversaries, including James, Schiff, and former FBI Director James Comey.

In his letter, Trump stated, “We can’t delay it any longer. This is damaging to our reputation and credibility. Justice must be served now!!!”

Shortly thereafter, Comey was indicted related to his congressional testimony about the investigation into the 2016 Trump campaign’s ties to Russia. On October 8, the day before James’ indictment, Comey pleaded not guilty to charges of lying to Congress and obstructing its proceedings.

Both cases were initiated by former White House aide Lindsey Harrigan, whom Trump appointed as interim U.S. attorney for the Eastern District of Virginia after pressure on former prosecutor Eric Siebert to pursue indictments against Trump’s critics.

Harrigan recently faced scrutiny for allegedly discussing grand jury testimony with a legal journalist.

In addition to asserting that Harrigan’s prosecution was politically motivated, Comey is seeking to dismiss the charges, claiming her appointment was illegal.

Meanwhile, Schiff is reportedly under federal investigation in Maryland for suspected mortgage fraud, related to claims about designating properties in Maryland and California as his primary residences. He has denied any wrongdoing.