Letitia James pleads not guilty in mortgage fraud case

October 24, 2025

New York Attorney General Letitia James has pleaded not guilty to federal charges of bank fraud and making false statements to a financial institution at a US District Court appearance in Norfolk, Virginia. The charges allege she misrepresented a three-bedroom home purchase as a secondary residence when prosecutors claim it was used as a rental investment property, allowing her to obtain favorable loan terms. James has characterized the charges as politically motivated retribution from the Trump administration, noting she previously brought fraud charges against Trump.

Who is affected

New York Attorney General Letitia James
President Donald Trump
James' great-niece (allegedly living in the property)
US Attorney Lindsey Halligan (appointed to oversee the case)
Former US prosecutor Erik Siebert (who reportedly resigned after not finding sufficient evidence)
Other Trump critics under investigation (James Comey and John Bolton)

What action is being taken

James is pleading not guilty to federal charges of bank fraud and making false statements
James' legal team is requesting a speedy trial
James' attorneys are filing a motion to dismiss the case on grounds that it is "vindictive"
James' legal team is challenging the appointment of US attorney Lindsey Halligan to the case
A trial date has been set for January 26

Why it matters

The case represents potential political retribution by the Trump administration against a former adversary who previously brought civil fraud charges against Trump that resulted in a $500 million fine (later reduced). James is one of several Trump critics now facing criminal charges, raising concerns about the justice system being used for political vengeance. The case comes after the original prosecutor reportedly found insufficient evidence to charge James and was replaced by Trump's former personal attorney, further suggesting possible political motivation behind the prosecution.

What's next

A trial date has been set for January 26.

Read full article from source: BBC