New York Attorney General Letitia James pleaded not guilty Friday to two federal felony charges of bank fraud and making false statements to a financial institution during her arraignment at a U.S. District Court in Norfolk, Virginia, as reported by Fox News.

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The charges stem from James’ 2020 purchase of a home in Norfolk. According to prosecutors, James misled a bank about the property’s intended use to qualify for better loan terms.

The indictment alleges she claimed the house would serve as her secondary residence but instead rented it to a family, allowing her to secure a lower interest rate and save nearly $19,000 over a 30-year mortgage.

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James entered her plea before U.S. District Judge Jamar K. Walker. She is represented by attorney Abbe Lowell and Andrew Bosse, a former assistant U.S. attorney who once led the Norfolk office’s criminal division.

The case against James is being prosecuted by Lindsey Halligan, whom President Donald Trump appointed as acting U.S. attorney for the Eastern District of Virginia last month.

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Halligan replaced interim attorney Erik Siebert, who resigned following disputes over bringing cases against James and former FBI Director James Comey.

“No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public’s trust,” Halligan said in a statement.

“The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”

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James, a Democrat, has long been a prominent political opponent of President Trump. During her 2016 campaign for attorney general, she pledged to investigate his business dealings, later bringing a high-profile civil case that resulted in a $450 million penalty.

That financial penalty was later overturned by an appeals court.

“This is nothing more than a continuation of the president’s desperate weaponization of our justice system,” James said following her indictment.

“These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost.”

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After her arraignment, James told reporters outside the courthouse that the Justice Department was being used as a “vehicle of retribution.” She added, “But my faith is strong. I have a belief in the justice system. Never cow down or break or bend. So there is no fear today. I will not be deterred.”

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Her attorneys are expected to file motions to dismiss the case, arguing selective and vindictive prosecution, and to challenge Halligan’s appointment. Judge Walker scheduled motions hearings for early December and set the trial for January 26, 2026.

The Justice Department did not respond to Fox News Digital’s request for comment on whether additional prosecutors would join the case.

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