NY Attorney General Letitia James Pleads Not Guilty to Federal Fraud Charges

New York Attorney General Letitia James was arraigned in Norfolk, VA, this morning after being charged with felony bank fraud and making false statements to a financial institution. She entered not guilty pleas on both charges.

The judge set an initial trial date for Jan. 26, 2026. Government attorneys said the trial is expected to take no more than two weeks, and they plan to call eight to 10 witnesses, according to ABC News.

Outside of the courthouse, supporters waited with signs and cheers when James appeared after the hearing.

“This is not about me,” the 67-year-old told her supporters, according to the NY Post. “This is about all of us and about a justice system that has been weaponized, this justice system that has been a tool of revenge … against those who simply did their jobs and stood up for the rule of law.”

“But my faith is strong!” the attorney general added. “I have a belief in the justice system and the rule of law.”

James had been under investigation since May over a 2023 mortgage. The investigation looked into a loan she took out to help her niece buy a home in Norfolk.

President Donald Trump's former personal lawyer, Lindsey Halligan—who is now the U.S. attorney in Eastern Virginia—was able to secure an indictment earlier this month from a grand jury after presenting the evidence.

James, the top prosecutor in New York, who led the civil fraud case against President Trump, is accused of committing bank fraud and lying to a financial institution to secure a favorable mortgage rate.

The NY Post obtained the document signed by James. It's the "second home rider" for her mortgage, which "attested that the property would be a second home occupied primarily by her."

Federal prosecutors say this allowed her to get a better mortgage rate from Old Virginia/Annie Mac, which netted her nearly $19,000 in mortgage savings.

If convicted on the two federal charges, James could face up to 60 years in prison.

Less than a week after her indictment, James came under scrutiny as to whom she was allowing to stay in her home.

Family matters

James allegedly allowed her grandniece, Nakia Thompson to stay at her Norfolk home for five years—despite Thompson being wanted by authorities in North Carolina, according to the New York Post.

Thompson, who lived at the Virginia property with her three children, has been officially labeled an “absconder” by the North Carolina Department of Corrections.

Court records confirm she failed to complete her probation for previous misdemeanor convictions related to assault, battery, and trespassing.

Thompson ranted on Facebook that the charges against her were "OLD AS HELL and fabricated."

"For all inquiring minds no Im not in trouble havent been in years at all. Very much a active mother to my children everyday, work everyday, and very much in college about to graduate with my B.A. in Sociology with a minor in Criminal Justice," she wrote.

James speaking out

James hasn't avoided the spotlight despite her indictment. On Oct. 13, she made her first public appearance since the charges were filed.

Speaking at a rally in Washington Heights, NY, for mayoral front-runner Zohran Mamdani, James delivered a fiery speech that doubled down on her innocence and framed the indictment as politically motivated.

“We see powerful voices trying to silence truth and punish dissent,” James told the crowd. “We are witnessing the fraying of our democracy.”

Trump has long called for legal action against his political adversaries. James’ indictment follows the federal indictment of former FBI Director James Comey, who pleaded not guilty to charges of lying to Congress and obstructing a congressional investigation. 

Most recently, former National Security Adviser John Bolton was indicted for allegedly mishandling classified information.

And the Justice Department has launched inquiries into California Congressman Adam Schiff.

Last spring, Federal Housing Finance Agency Director William Pulte announced a tip line, saying "anyone and everyone can submit tips on anyone fraudulently filling out mortgage [applications]" by emailing FraudTips@fhfa.gov.