NY Attorney General Letitia James pleads not guilty to fraud charges in first appearance at Norfolk federal court

Jane Harper, The Virginian-Pilot on Oct 24, 2025

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NORFOLK, Va. — New York Attorney General Letitia James on Friday pleaded not guilty in U.S. District Court to charges accusing her of misleading a bank in an effort to get a lower interest rate for a house she bought here in 2020. Jones asked the court to dismiss the charges in a motion filed afterward.

A tentative trial date was set for Jan. 26 in Norfolk, with two pretrial hearings scheduled in December.

James smiled broadly as she walked into the courtroom with her team of attorneys shortly before the 11 a.m. hearing. The only time she spoke was in response to Judge Jamar K. Walker’s questions, and to enter her pleas. She addressed dozens of supporters outside the courthouse and thanked them for standing by her.

“This is not about me. This is about all of us,” James told the group. “And about a justice system which has been weaponized. A justice system which has been used as a tool of revenge.”

A grand jury in Alexandria indicted James on Oct. 9 on one count of bank fraud and one count of making false statements to a financial institution. Each charge carries a maximum penalty of 30 years in prison and a $1 million fine.

The indictment alleges that in order to qualify for a lower interest rate for a home James purchased in August 2020 in Norfolk’s Fairmount Park neighborhood, James misrepresented how she planned to use the two-story, pale yellow house. The mortgage terms required she use it as a secondary residence, yet the indictment claims James rented it to a family of three. The misrepresentation, the charging document asserted, allowed James to save close to $19,000 over the life of the 30-year loan.

The indictment doesn’t name the person James is alleged to have rented the house to, but a person familiar with the case said she bought it for her great-niece and has allowed the woman and her children to live there rent free.

James, who successfully sued President Donald Trump in a 2022 civil case accusing him of inflating his real estate assets, has called the charges “baseless” and an attempt by the president to “weaponize” the justice system against his enemies.

The case was filed by interim U.S. Attorney for the Eastern District of Virginia Lindsey Halligan. Trump appointed Halligan last month to replace Erik Siebert after Siebert failed to secure charges against James and resigned under pressure. Two other top attorneys in the office, Elizabeth Yusi and Kristin Bird, were fired after they declined to move forward with charges against James, according to several reports.

Halligan, a former personal lawyer for Trump who has no prosecuting experience, was in court Friday but didn’t speak during the hearing. Instead, Roger Keller, an assistant U.S. attorney from Missouri, represented the government.

In a motion filed Friday, James’ defense team asked the court to dismiss the charges. The 22-page document — similar to one filed by Former FBI Director James Comey after he was charged with making a false statement and obstructing a congressional proceeding — alleges Halligan was illegally appointed to her position, and has no authority to prosecute the case.

Keller told Walker he expected about eight to 10 witnesses to testify during the trial, and estimated it could last up to two weeks. Walker, however, said that a week sounded more reasonable and scheduled it as such.

“A trial with eight to 10 witnesses is not going to take two weeks in this jurisdiction,” the judge said.

James’ lead attorney, Washington lawyer Abbe Lowell, asked the court to order the government to adhere to professional rules regarding talking about a case while it’s pending. The move was in response to reports that Halligan contacted a reporter with Lawfare and exchanged messages with her through the Signal encrypted messaging service, which deletes the exchanges hours later.

Lowell asked the court to require prosecutors to log any such future conversations. Keller said that if the judge decided to require the logs, then he should make the defense do the same. Walker didn’t rule on the matter, but asked both sides to submit written arguments.

Outside the courthouse, about 100 people gathered on the lawn and street in front of the courthouse steps to support — and heckle — James after the hearing. Local elected officials in attendance included state Sens. Aaron Rouse and Angelia Williams Graves, Norfolk City Councilman JP Paige and Norfolk Commonwealth’s Attorney Ramin Fatehi.

Also out showing support for James were advocacy organizations such as the NAACP, Higher Heights for America, COVA Coalition, Fair and Just Prosecution and Norfolk Democrats.

(Staff writer Emma Brown contributed to this report.)