Letitia James Pleads Not Guilty in Bank Fraud Case

New York Attorney General Letitia James pleaded not guilty Friday in federal court in Norfolk, Virginia, to two counts — bank fraud and making false statements to a financial institution — over a 2020 mortgage on a Virginia property. Prosecutors allege she misrepresented the home as a second residence to obtain better mortgage terms while renting it to a family member, saving roughly $17,000–$19,000 over the life of the loan. She entered her plea before Judge Jamar Walker and called the indictment “baseless,” accusing President Donald Trump of weaponizing the justice system; James last year won a high‑profile civil fraud judgment against Trump. The case has drawn scrutiny because interim U.S. Attorney Lindsey Halligan — a former Trump personal lawyer who led the prosecution after objections from career prosecutors — brought the indictment, and James’ lawyers say they will challenge Halligan’s appointment and allege improper extrajudicial disclosures. Reporting also notes prosecutors’ own pre‑indictment findings may undercut elements of the government’s case.