NY Attorney General pleas not guilty over mortgage fraud claims
(MENAFN) New York Attorney General Letitia James entered a not guilty plea on Friday in response to federal mortgage fraud allegations, according to reports.
James was indicted on October 9 by a U.S. Attorney appointed by President Donald Trump, facing one count of bank fraud and one count of making false statements to a financial institution.
"Not guilty, judge, to both counts," James declared herself in a federal courtroom in Norfolk, Virginia.
U.S. District Judge Jamar Walker scheduled an initial trial date for January 26. Government attorneys noted that the proceedings are expected to last no longer than two weeks and said they plan to call between eight and ten witnesses.
James has been released on her own recognizance until the trial begins.
Having successfully brought a civil fraud case against Trump last year, James currently leads multiple lawsuits challenging policies from his administration.
After her arraignment, James stated at a news conference that the justice system under Trump has been "used as a tool of revenge" and described it as a "vehicle of retribution."
"This is not about me. Yes, this is about all of us. Yeah. And about our justice system, which has been weaponized. Against a justice system, which has been ... used as a tool of revenge," she said.
"But my faith is strong. And my faith is, I have this belief in the justice system, in the rule of law," she added.
In a separate court motion, the judge set a November 1 deadline for James to submit her first filing on her claim of vindictive prosecution.
The mortgage fraud allegations relate to a property James purchased in 2020. The indictment claims she misrepresented the home as a second residence to secure a favorable mortgage rate, while actually using it as an "investment property" and renting it to a family of three.
According to the indictment, James collected thousands in rent and would have saved $17,837 over the mortgage term compared to a higher-rate loan. However, prosecutors noted in a September internal memo to a former U.S. Attorney that James had bought the Norfolk home for her great-niece and immediately allowed her and her children to live there rent-free.
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