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Attorney General Letitia James Pleads not Guilty to Federal Mortgage Fraud Charges

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Business Honor - Letitia James Denies Federal Fraud Charges

Business Honor
27 October, 2025

New York Attorney General Letitia James faces rare federal mortgage fraud charges, calling the prosecution politically motivated and unjust.

Letitia James, the attorney general of New York, entered a not guilty plea to two criminal counts in federal court on Friday. These dealt with making false claims to a financial institution and bank fraud. James has been accused of fabricating information on a 2020 mortgage application in the Norfolk, Virginia, case. James reportedly stated that a Norfolk property would serve as her second home, but it was actually utilized as an investment, according to the prosecution. She allegedly saved over $19,000 over the course of the loan by securing a cheaper interest rate as a result.

James, a Democrat who has long opposed President Donald Trump, has described the lawsuit as politically motivated. She told supporters outside the courthouse that the justice system is being “weaponized” and promised to fight the charges. Her trial is scheduled to begin on January 26, 2026.

The prosecution is unusual as federal mortgage-related cases of this kind are rarely pursued. Legal experts point out that the charges coincide with more general concerns that the Trump administration intends to target political opponents with the Justice Department. Along with former National Security Advisor John Bolton and former FBI Director James Comey, James is one of several important people who have lately been charged or under investigation.

Under the direction of lawyer Abbe Lowell, James' legal team plans to contest the charges on a number of grounds. They argue that the appointment of U.S. Attorney Lindsey Halligan, who was put in by Trump to oversee the case, is unlawful. The defense also claims the prosecution is vindictive and selectively motivated. A federal hearing on the appointment issue is set for November 13, 2025.

James previously won a major civil fraud case against Trump in New York, securing a $454 million judgment, later reduced on appeal. Both sides continue to appeal portions of that ruling. U.S. District Judge Jamar Walker will preside over James’ criminal case.