New York AG Letitia James pleads not guilty in mortgage fraud case
New York Attorney General Letitia James pleaded not guilty to two charges tied to a mortgage fraud case Friday morning. The investigation was pushed by President Donald Trump, who has called for investigations into those who previously investigated him.
James is the third person the Trump administration has targeted with investigations. The Department of Justice has charged both former FBI Director James Comey and former Trump adviser John Bolton with crimes after Trump publicly asked for investigations.
What did the DOJ charge James with?
On Oct. 9, the Justice Department charged James with one count of bank fraud and one count of making a false statement. Prosecutors said in 2020, James misrepresented how she would use a home when applying for a mortgage in Norfolk, Virginia, to get a lower interest rate.
The indictment stated she purchased the home for $137,000 and borrowed a little more than $109,000. Because she received better lending terms and a larger seller credit, prosecutors said she saved almost $19,000 over the life of the loan.
How is Trump involved in the case?
Prosecutors originally investigated a criminal referral by Federal Housing Finance Agency Director Bill Pulte, a Trump ally, who claimed James committed mortgage fraud during her home purchase.
A grand jury in Norfolk issued a subpoena but prosecutors in the Eastern District said the evidence was too weak, according to The Washington Post. Following the decision, the DOJ fired several prosecutors. The firings came after Trump publicly posted on Truth Social, asking for Attorney General Pam Bondi to investigate Letitia and others Trump believed deserved it.
Former U.S. attorney for the Eastern District of Virginia Erik Siebert was pushed out by Trump when he deemed there was insufficient evidence to charge James. Trump then installed White House aide Lindsey Halligan as interim U.S. attorney to replace Siebert. She then got grand jury indictments for both James and Comey.
Could the case be dismissed?
In addition to pleading not guilty, James was expected to ask that the case be dismissed. However, the defense did not file the motion on Friday.
James’ team claims Trump illegally appointed Halligan and that the case should be dismissed on that ground.
Judge Jamar Walker, a Biden appointee, said they must file before Nov. 7 and that the Justice Department must respond by Nov. 21. James will be able to further respond by Nov. 28.
A final hearing on the motion would happen on Dec. 5.
James’ motion to dismiss Halligan will be combined with a similar motion Comey planned to file.
Comey’s team said Halligan can no longer serve in her position because it has reached 120 days, the maximum an interim U.S. attorney can serve.
What was released in court today?
Judge Jamar Walker said the trial could take five days. Walker, a Biden appointee, said he didn’t believe there was much complexity to it that would require more time.
Prosecutors said they expect to call eight to 10 witnesses during the trial.
Following her plea, James made a brief statement to press outside the courthouse. She said her work will continue despite the trial and that it hasn’t shaken her.
“There’s no fear today, no fear,” James said. “Because I believe that justice will rain down like water, and righteousness like a mighty stream.”
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Ella Rae Greene, Editor In Chief
