New York Legal professional Basic Letitia James, showing in a federal courtroom in Norfolk, Virginia, pleaded not responsible Friday to prices of alleged mortgage fraud, after she was indicted earlier this month by President Donald Trump’s handpicked U.S. legal professional.
Interim U.S. Legal professional Lindsey Halligan — who Trump appointed simply days after calling on the his legal professional common to act “NOW!!!” to prosecute James and different political enemies — secured an indictment towards James on prices of financial institution fraud and making false statements to a monetary establishment.
Halligan was named U.S. legal professional by Trump after Trump ousted her predecessor, Erik Siebert, who sources say had expressed doubts internally about bringing circumstances towards James and former FBI Director James Comey.
James, who efficiently introduced a civil fraud case towards Trump final 12 months and leads a number of lawsuits difficult his administration’s insurance policies, was indicted on prices that she dedicated mortgage fraud associated to a house she bought in 2020.
In accordance with the indictment, James falsely described the property as a second residence to get an advantageous mortgage charge, however used it as an “funding property,” rented to a household of three. The indictment alleged James collected hundreds of {dollars} in hire and would have saved $17,837 over the lifetime of the mortgage versus a mortgage at the next charge.
“Nobody is above the legislation. The fees as alleged on this case signify intentional, felony acts and great breaches of the general public’s belief,” Halligan mentioned in a press release saying the costs. “The details and the legislation on this case are clear, and we are going to proceed following them to make sure that justice is served.”
However in an inside memo to Siebert in September, prosecutors mentioned James bought the house in Norfolk, Virginia, for her great-niece and instantly allowed her and her youngsters to start residing in the home rent-free, sources instructed ABC Information. Prosecutors met with James’ niece, who acknowledged that she had by no means signed a lease, had by no means paid hire for the house, and that James had usually despatched her cash to cowl a number of the bills, the memo concluded, based on sources conversant in its contents.
New York Legal professional Basic Letitia James stands silently throughout a press convention on October 21, 2025 in New York Metropolis.
Michael M. Santiago/Getty Photographs
“It is baseless,” James mentioned of the costs this month. “It is nothing greater than retribution, retribution for doing my job.”
Attorneys representing James filed a movement Thursday signaling their intent to problem Halligan’s appointment as illegal. An analogous movement difficult Halligan’s appointment was filed within the case towards Comey.
James’ protection attorneys additionally filed a movement to the courtroom to implement guidelines prohibiting leaks from prosecutors, after a Monday report by Anna Bower of the web publication “Lawfare” contained Sign textual content messages exchanged between Halligan and Bower within the days after prices have been filed towards James.
“In initiating this contact, Ms. Halligan — the lead prosecutor on this case as of the date of this submitting — commented on the credibility and common power of the proof offered to the grand jury,” the submitting states.
James’ attorneys argue of their submitting that Halligan’s feedback to Bower run afoul of the Federal Guidelines of Prison Process, the Code of Federal Rules, native courtroom guidelines, the Justice Division Guide, and guidelines of moral {and professional} duty.
James’ indictment on Oct. 9 got here between the indictments of Comey and former Trump nationwide safety adviser John Bolton amid what critics name Trump’s marketing campaign of retribution towards his perceived political foes.
Vice President JD Vance has mentioned any such prosecutions are “pushed by legislation and never by politics.”
If convicted, James faces a most of as much as 30 years in jail per depend, as much as a $1 million superb on every depend, and forfeiture of the property.
