New York Attorney General Letitia James Pleads Not Guilty to Mortgage Fraud Charges
NEW YORK, USA – October 24, 2025: New York Attorney General Letitia James has entered a not-guilty plea to two federal charges — one count of bank fraud and one count of making a false statement to a financial institution. The case, widely viewed as politically motivated, was brought forward by the administration of US President Donald Trump.
James made her first court appearance on Friday at a federal courthouse in Norfolk, Virginia, where she firmly denied all allegations. The indictment accuses her of misrepresenting the purpose of a property investment in order to obtain more favorable loan terms.
Her highly anticipated trial is scheduled to begin on January 26, 2026.
Trump’s Political Rival Faces Criminal Charges
Letitia James, a longtime adversary of Donald Trump, has accused the president of using his administration to weaponize the justice system against political opponents. Speaking to supporters outside the courthouse, James denounced the case as “an abuse of power” and vowed to fight the charges.
“This is not about me. This is about all of us — and a justice system that has been weaponized,” she said to a cheering crowd.
“There’s no fear today. Because I believe justice will rain down like water, and righteousness like a mighty stream.”
James is the third prominent Trump critic to face federal indictment in recent weeks, following former FBI Director James Comey and ex-National Security Adviser John Bolton. Critics have described the string of prosecutions as part of Trump’s political retaliation campaign during his second term.
The Allegations: Mortgage Fraud and False Statements
The Department of Justice under Trump alleges that Letitia James lied on a mortgage application for a Virginia home, claiming it would serve as a secondary residence when it was instead rented out. Prosecutors argue this misrepresentation allowed her to secure a lower interest rate than she was otherwise eligible for.
James’s legal team, however, has dismissed the charges as baseless, calling them “a continuation of the president’s vendetta” against political rivals who challenged his authority. Her attorneys also noted procedural irregularities, including the appointment of Lindsey Halligan, a former Trump aide with no prior experience as a federal prosecutor, who personally signed the indictments against both James and Comey.
Background: A Longstanding Feud Between Trump and James
Letitia James has been one of Donald Trump’s most prominent legal adversaries for nearly a decade. As New York’s Attorney General, she led the civil fraud lawsuit against Trump and his family business, accusing them of inflating asset values to obtain loans and insurance benefits.
In February 2024, a New York judge ordered Trump to pay $355 million in damages in that civil case — a ruling later reduced on appeal but still regarded as a major blow to his business empire.
Trump has consistently denied wrongdoing and dismissed all investigations as “political witch hunts.” Since returning to office in January 2025, he has publicly called for criminal prosecutions of his critics, including James, Comey, and Senator Adam Schiff.
Trump’s Call for “Justice” and the DOJ’s Response
On September 20, 2025, Trump took to his platform Truth Social to demand swift action from the Department of Justice, writing:
“We can’t delay any longer — it’s killing our credibility. JUSTICE MUST BE SERVED NOW!”
Just five days later, Comey was indicted, followed by James and, potentially, others still under investigation. The cases are being led by Attorney General Pam Bondi, a former Florida official and Trump loyalist.
A senior DOJ official, Erik Siebert, who reportedly questioned the merits of the cases, was fired shortly before the indictments were issued.
Letitia James Responds: “I Will Not Be Intimidated”
In her post-hearing remarks, James reaffirmed her commitment to the rule of law and vowed not to back down. “This is about justice, not fear,” she declared, echoing her earlier efforts to hold Trump accountable through civil litigation.
Her campaign team described the prosecution as an “unprecedented abuse of presidential power.” Supporters have likened the charges to “political persecution,” drawing comparisons to authoritarian-style governance.
The American Civil Liberties Union (ACLU) and several former federal prosecutors have expressed concern over the case, warning that using federal prosecutions against political opponents undermines democratic norms.
Political Fallout and Public Reaction
The indictment has deepened divisions across the United States. Supporters of Trump have celebrated the move as long-overdue accountability, while critics view it as a dangerous escalation of political retribution.
Political analysts argue that the case could become a defining issue in the 2026 midterm elections, testing public confidence in the independence of the US judiciary. Many observers note that the charges come amid Trump’s continued efforts to consolidate power and reshape federal institutions.
Meanwhile, polls show that Letitia James retains strong support among Democrats, particularly in New York, where she remains a symbol of resistance to Trump’s presidency.
What Happens Next: A Trial Set for January 2026
Letitia James’s trial is set to begin on January 26, 2026, in Norfolk, Virginia. Legal experts expect the proceedings to draw intense national attention, given the political implications and the involvement of high-ranking government officials.
If convicted, James could face up to 30 years in prison. Her lawyers, however, are expected to file multiple pretrial motions challenging the validity of the indictment and the appointment of the lead prosecutor.
Observers say the case could test not only James’s personal resilience but also the integrity of the American justice system under an administration accused of targeting its critics.
Conclusion: A Symbolic Battle Over Justice and Power
The case of Letitia James vs. the Trump administration stands as one of the most politically charged legal battles of 2025. It encapsulates the broader struggle between rule of law and political influence, raising crucial questions about the separation of powers, judicial independence, and democratic accountability.
As the trial approaches, both Trump’s supporters and critics will be watching closely — not just for the outcome, but for what it reveals about the future of American democracy.
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