NORFOLK, Va. — New York Attorney General Letitia James was arraigned on federal charges of bank fraud on Friday — she entered a plea of not guilty, CNN reports.
The next trial date for James is set for Jan. 26, 2026, CNN reports. The Justice Department said eight to 10 witnesses may be called for the trial. The judge estimated the trial could take five days, adding that there wasn't much complexity to the case that would result in the timeline being prolonged, CNN reports.
James was indicted earlier this month. The Justice Department's charges center on a home on Peronne Avenue near Lafayette Boulevard. Federal prosecutors say James misrepresented her property as a second residence instead of a rental when applying for a mortgage.
Politics
Read the indictment of New York Attorney General Letitia James
According to the indictment, James purchased the home for $137,000 and borrowed $109,600 — and because she received more favorable lending terms and a larger seller credit, she allegedly saved $18,933 over the life of the loan.
Now, the New York attorney general is facing two federal charges: bank fraud and making false statements. James is set to plead not guilty, CBS News reports — she has previously called this case politically motivated payback.
"This is nothing more than a continuation of the president's desperate weaponization of our justice system," James said.
In a pair of legal filings Thursday, James' legal team took aim at the Trump-appointed prosecutor overseeing her bank fraud case, accusing interim U.S. attorney Lindsey Halligan of an improper conversation with a journalist and vowing to seek dismissal of the indictment on the grounds that Halligan was unlawfully named to the job, CBS News reports.
Halligan was appointed by President Donald Trump to serve as the interim U.S. attorney for the Eastern District of Virginia — her term expires after 120 days, pending extension from the district's federal judges, or a formal Senate confirmation. Her predecessor, Erik Siebert, resigned amid concerns he would be forced out for failing to prosecute James.
Watch previous coverage: Virginia prosecutor investigating NY AG Letitia James pushed to resign
The president refuted the claim that Siebert resigned, instead saying he fired the prosecutor because "Nothing is being done."
Before joining the White House and working for Trump, Halligan handled insurance claims at a law firm in Florida, CBS News reports. She graduated from the University of Miami Law School in 2013 and was admitted to the Florida Bar in 2014. Halligan has never worked in a prosecutor's office. A legal marketing website with Halligan's resume, USattorneys.com, says that she interned at the Miami Public Defender's Office and the Innocence Project.
James, a Democrat, has repeatedly clashed with the Trump administration and Trump himself when he was between Presidential terms. She won a major civil fraud case against Trump in 2024.
Local political expert Jesse Richman previously told News 3 that this case reflects broader political tensions.
"Donald Trump thought that he was unfairly targeted by James and others, and he's pushing to have federal prosecutors target those people," Richman said.
If convicted, James could face up to 30 years in prison and a $1 million fine on each count.
