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OAN Staff Brooke Mallory
6:31 PM – Friday, October 24, 2025
New York Attorney General Letitia James pleaded not guilty on Friday in federal court in Norfolk, Virginia, to two felony charges — bank fraud and making false statements — related to a 2020 mortgage for a Norfolk property.
The case is being overseen by interim U.S. Attorney Lindsey Halligan in the Eastern District of Virginia, and legal experts say the case’s outcome may hinge on questions of intent, materiality, and potential selective enforcement.
James has been indicted on two felony charges: bank fraud and making false statements to a financial institution.
The charges stem from her 2020 purchase of a property in Norfolk, Virginia. Prosecutors allege that James misrepresented the property’s intended use on her mortgage application, claiming it would be her primary residence when, in fact, she rented it out to relatives as an investment property.
This misrepresentation purportedly allowed her to secure more favorable loan terms, saving approximately $19,000 over the life of the mortgage.
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The trial is scheduled to begin on January 26, 2026, with a pre-trial hearing on December 5th to address motions, including defense claims of “vindictive prosecution.”
Meanwhile, many conservatives have labeled the defense’s claims as “ironic,” pointing out that James herself has a long history of pursuing high-profile, politically charged cases against President Donald Trump — actions many view as a textbook example of vindictive prosecution.
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