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New York Attorney General Letitia James was arraigned in federal court in Norfolk, Virginia, on Friday, where she entered a not guilty plea to two felony charges: bank fraud and making false statements to a financial institution.
The allegations against James are related to her 2020 home purchase in Norfolk. Prosecutors claim she misrepresented the nature of the property to secure more favorable loan terms from the bank.
According to the indictment, James allegedly profited from what are described as “ill-gotten gains” from a $109,600 mortgage, potentially saving nearly $19,000 over the loan’s 30-year term.
This arraignment is part of a broader pattern of prosecutions targeting individuals seen as political adversaries of the current administration, despite pushback from career prosecutors, some of whom have been dismissed or have resigned.
James, a Democrat, has been a vocal critic of former President Trump, having campaigned for attorney general in 2016 with a focus on investigating his activities and businesses.
Last year, she won a $450 million civil fraud case against Trump, although an appeals court later overturned the financial penalty.
“This is nothing more than a continuation of the president’s desperate weaponization of our justice system,” James stated following her indictment.
She further asserted, “These charges are baseless, and the president’s own public statements make clear that his only goal is political retribution at any cost.”
The indictment was presented to a grand jury by Lindsey Halligan, a former White House aide appointed by Trump as the acting U.S. attorney for the Eastern District of Virginia last month.
In September, Trump announced Halligan’s appointment to replace interim attorney Erik Siebert, who resigned under pressure related to the indictments of both Comey and James.
“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 remarked. “The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”
Following her arraignment, it’s anticipated that James will file a motion to dismiss, arguing that her prosecution is vindictive and selective, similar to strategies employed by Comey’s legal team earlier in the week. Additionally, her legal representatives will challenge Halligan’s appointment as unlawful.
Her attorney, Lowell, has labeled the case against her as “improper political retribution” and pledged to contest the charges through every legal avenue available.
The Justice Department has not yet responded to inquiries regarding the case or whether Halligan or Keller will be joined by other federal prosecutors in the Eastern District of Virginia.
This is a developing story. Check back for updates.
