New York Attorney General Letitia James pleads not guilty in mortgage fraud case pushed by Trump

NORFOLK, Va. (AP) — New York Attorney General Letitia James accused the Trump administration of using the justice system as a “tool of revenge” after she pleaded not guilty Friday in a federal mortgage fraud case the president pressed the Justice Department to bring.

James’ first court appearance in Virginia sets the stage for a high-stakes legal battle between the Republican administration and a Democratic longtime Trump foe who angered him with a major civil fraud case she brought against him. She’s accused of lying on mortgage papers to get favorable loan terms when purchasing a modest house in Norfolk, where she has family.

James is the third Trump adversary to appear before a judge this month on federal charges, amplifying concerns that the president is using the government’s law enforcement powers to seek retribution for his own legal troubles. Justice Department leaders have defended the cases and argue the Biden administration — which brought two indictments against him — was the one that weaponized the justice system.

James left the courthouse smiling to cheers from dozens of waiting supporters, who chanted, “We stand with Tish!” The indictment charging her with bank fraud and making false statements to a financial institution, she declared, was about “a justice system which has been used as a tool of revenge … and a weapon against those individuals who simply did their job and who stood up for the rule of law.”

“My faith is strong, and I have this belief in the justice system and the rule of law, and I have a belief in America,” James said, adding, “There’s no fear today.”

The judge set a trial date for Jan. 26, James’ attorney, Abbe Lowell, told the judge the defense will seek to have the case dismissed, arguing that it’s a vindictive prosecution brought at the direction of the president.

James was indicted this month after the top federal prosecutor who had been overseeing the investigation was pushed out by the Trump administration and the president publicly called on Attorney General Pam Bondi to take action against James and other political foes.

Prosecutors allege that when buying the Norfolk home in 2020, James signed a standard document called a “second home rider” in which she agreed to keep the property primarily for her “personal use and enjoyment for at least one year,” unless the lender agreed otherwise.