New York Attorney General Letitia James Pleads Not Guilty in Mortgage Fraud Case

New York Attorney General Letitia James entered a plea of not guilty on Friday to two felony charges, which include bank fraud and providing false statements to a financial institution.

According to prosecutors, James allegedly misrepresented information to secure a more advantageous loan for a property purchase. The indictment reveals that she claimed a home she bought in Norfolk, Virginia, in 2020 was intended as a secondary residence, but it was instead rented out to family members.

James responded to the indictment by stating, “This is merely another instance of the president’s relentless misuse of our justice system for personal vendettas.”

She further asserted, “These accusations are unfounded, and the president’s own public remarks indicate that his sole intention is political retaliation, regardless of the consequences.”

James’s attorney, Abbe Lowell, addressed a letter to the judge concerning comments made by prosecutor Lindsey Halligan related to the case.

The indictment specifies that by securing a reduced interest rate on the mortgage, James would potentially save $19,000 over the duration of the 30-year loan.

The indictment stated that, by obtaining a lower interest for the mortgage, she would save $19,000 over the 30-year loan.

James campaigned in 2016 based on promises to investigate Donald Trump’s actions and businesses.

She led a civil fraud cause against then-former President Donald Trump in 2024; however, in August 2025 an appeals court tossed the significant financial penalty against the 47th president.

White House aide Lindsey Halligan, whom Trump tapped as the acting U.S. attorney for the Eastern District of Virginia, led the indictment against James.

“No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” Halligan said in a statement.

“The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”

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