NORFOLK, Virginia — New York Attorney General Letitia James entered a plea of not guilty on Friday to federal charges of bank fraud and making false statements to a financial institution. The arraignment took place at the U.S. District Court in Norfolk, Virginia, where James’ legal team also requested a speedy trial.

Speaking outside the courthouse following the hearing, James accused former U.S. President Donald Trump of leveraging the justice system as a “vehicle of retribution” against her. James, a known critic of Trump, previously filed civil charges against him before his re-election campaign. Her federal indictment adds to a growing list of Trump adversaries facing legal scrutiny under the current or prior administration.

Charges and Allegations

According to federal prosecutors, James purchased a three-bedroom property in Norfolk, Virginia, using a mortgage loan that required the home to serve as a secondary residence. The loan terms explicitly prohibited shared ownership or “timesharing.”

The indictment alleges that James did not occupy the property as a secondary residence, instead using it as a rental investment. Prosecutors claim the home was rented to a family of three, allowing James to obtain favorable loan terms that would have been unavailable for an investment property.

Unnamed sources cited by U.S. media reported that James acquired the home in 2020 for her great-niece, who never paid rent. The allegation raises questions about whether James misrepresented the intended use of the property to secure financial benefits.

Legal Challenges and Motions

James’ defense team has filed motions to challenge the appointment of U.S. Attorney Lindsey Halligan, a former personal attorney of Donald Trump, to the case. Halligan was appointed after the previous U.S. attorney, Erik Siebert, resigned reportedly following his assessment that there was insufficient evidence to charge James.

Additionally, James’ attorneys are pursuing a motion to dismiss the charges on the grounds of “vindictive prosecution,” arguing that the case is politically motivated due to her prior legal actions against Trump.

Political Context

James’ case comes amid a wave of federal scrutiny involving former Trump associates and critics. The Justice Department recently charged Trump’s former FBI Director James Comey with making false statements to Congress, while former National Security Adviser John Bolton faces charges related to retaining national defense information.

Trump has publicly advocated for investigations into his political opponents, calling for U.S. Attorney General Pam Bondi to pursue charges. He cited concerns over the integrity and credibility of the legal system in recent social media posts.

Background on James’ Legal Action Against Trump

In 2022, Letitia James filed a civil fraud case against Donald Trump and the Trump Organization, alleging falsified financial records to secure favorable loan deals. Trump was initially ordered to pay a $500 million fine. Although an appeals court later overturned the monetary penalty as excessive, it upheld the finding that Trump was liable for fraud.

Court Proceedings and Next Steps

The court set a trial date for January 26, 2026. James maintains her stance of innocence and vowed to continue her legal and public service work without fear, drawing support from a gathering of her backers outside the courthouse.

As this high-profile case unfolds, it is expected to attract significant media attention and contribute to ongoing debates surrounding the politicization of the U.S. justice system, mortgage fraud laws, and accountability for public officials.