New York AG Letitia James Pleads Not Guilty to Mortgage Fraud Charges

James faces up to 30 years in prison and $1 million in fines for each count.

New York Attorney General Letitia James leaves the Walter E. Hoffman United States Courthouse following an arraignment hearing in Norfolk, Va., on Oct. 24, 2025. Win McNamee/Getty Images

New York Attorney General Letitia James pleaded not guilty to charges of mortgage fraud during an arraignment hearing in Norfolk, Virginia, on Oct. 24. Her trial date is set for Jan. 26, 2026.

James addressed supporters outside the courthouse after the hearing, saying the case was not about herself but reflected “a justice system which has been weaponized, a justice system which has been used as a tool of revenge.”

“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.

“There’s no fear today.”

James stands accused of one count of bank fraud and one count of making false statements to a financial institution, after she said on mortgage documents that a house she purchased in Norfolk would be used as a secondary residence.

The government claims that she instead used that home as a rental property for a family of three.

Designating the property as a second home instead of a rental property allowed James to save nearly $19,000 in interest and tax credits, the government alleged.

“The facts and the law in this case are clear, and we will continue following them to ensure that justice is served,” Lindsey Halligan, U.S. attorney for the Eastern District of Virginia, said in a statement.

Halligan said James faces up to 30 years in prison and $1 million in fines for each count, along with forfeiture of the property, but she also noted that the actual penalties are usually less than the maximum.

James notified the court on Thursday that she would move to have the charges dismissed on the grounds that Halligan was appointed illegally.

She has also asked Judge Jamar Walker to stop government prosecutors from disclosing information about the case to the media or the public, after Lawfare journalist Anna Bower published a series of text messages between Halligan and herself.

Halligan had reached out to dispute the facts of the reporter’s story, but said she was unable to go into specifics about “grand jury stuff.” At the end of the exchange, she insisted that her previous statements be considered “off the record.”

“I’m sorry but that’s not how this works,” Bower replied. “You don’t get to say that in retrospect.”

Halligan, a former White House staffer, replaced U.S. Attorney Erik Siebert, who resigned in September after refusing to bring charges against James following an investigation.

In previous statements, James described the charges as “baseless” and politically motivated.

James was elected in 2018 after running on a campaign promise to investigate President Donald Trump. In Sept. 2022, she brought suit against Trump, alleging he had overvalued his real estate holdings by billions of dollars.