NORFOLK, Va. — New York Attorney General Letitia James, a longtime political foe of President Donald Trump who previously sued him for making misleading statements to banks, pleaded not guilty to bank fraud charges in federal court on Friday.
James entered the plea herself shortly after the arraignment began before U.S. District Judge Jamar K. Walker.
The judge set a trial date of Jan. 26 and estimated it would take about five days. James was released on her own recognizance.
In court for the proceedings was Lindsey Halligan, Trump’s former personal lawyer and the current acting U.S. attorney for the Eastern District of Virginia. She was the lone prosecutor to sign James’ indictment earlier this month.
James’ attorneys said they plan to argue the case against her should be tossed because it’s a selective and vindictive prosecution. The judge scheduled a hearing on the claim for Dec. 5.
James was greeted by cheering supporters as she left the courthouse.
“This is not about me. This is about all of us, and a justice system which has been weaponized” and “used as a tool of revenge” against “individuals who simply did their job,” James said.
She said she has “no fear.”
“All throughout my public career, I’ve stood up for the rights of New Yorkers and Americans, and I will not be deterred,” she said.
The grand jury indicted James, a Democrat, weeks after Trump posted a message on Truth Social pressing Attorney General Pam Bondi to take action against her and two other political adversaries.
James was charged with one count of bank fraud and one count of making false statements to a financial institution. The indictment alleges she falsely claimed that a home in Norfolk, Virginia, was her second residence, allowing her to obtain favorable loan terms, and that she rented the property to a family of three.
The indictment alleges she saved about $50 a month.
After she was charged, James called the allegations “baseless” and said Trump’s “own public statements make clear that his only goal is political retribution at any cost.”
James’ office brought a civil fraud suit against Trump and his company in 2022. It alleged they were submitting misleading financial statements to banks and insurers, exaggerating his net worth by billions of dollars and enabling Trump and his company to obtain bank loans and insurance policies at rates they were not entitled to. As a result, James’ office has said, he “reaped hundreds of millions of dollars in ill-gotten gains.”
Trump was found liable for fraud and hit with a $464 million judgment last year. A divided state appeals court upheld the fraud finding in August but tossed out the financial penalty, finding it was “excessive.” Trump has denied wrongdoing in the case and is appealing the fraud finding.
James is the third prominent Trump critic to be arraigned on federal criminal charges in the past three weeks.
John Bolton, Trump’s former national security adviser, was arraigned last week, while former FBI Director James Comey was arraigned the week before that. Both pleaded not guilty.
James and Comey were indicted shortly after Halligan, who had no prior prosecutorial experience, was sworn in as U.S. attorney.
Her predecessor, Erik S. Siebert, resigned under pressure last month after Trump said he wanted him “out.” NBC News previously reported that both the Comey and the James investigations were stalled during Siebert’s tenure because federal agents and prosecutors did not believe they had the evidence to secure convictions.
Comey has challenged the legality of Halligan’s appointment, something James’ attorneys said in a court filing Thursday that they plan to do as well.
The judge said James’ motion will be joined with Comey’s, which is scheduled to be heard by a South Carolina judge on Nov. 13.
Halligan was sworn in days after Trump’s social media post urging Bondi to take action against James, Comey and Sen. Adam Schiff, D-Calif.
Schiff is being investigated in Maryland over allegations of mortgage fraud, and he has denied any wrongdoing. NBC News, citing four people familiar with the investigation, reported Thursday that the investigation has stalled, with prosecutors believing they do not have enough evidence to bring charges.
Gary Grumbach and Owen Hayes reported from Norfolk, Virginia. Dareh Gregorian reported from New York.
