NORFOLK — New York Attorney General Letitia James on Friday pleaded not guilty in U.S. District Court in Norfolk to charges accusing her of misleading a bank in an effort to get a lower interest rate for a house she bought here in 2020, and asked the court to dismiss the charges in a motion filed afterwards.
James smiled broadly as she walked into the courtroom with her team of attorneys shortly before the 11 a.m. hearing began. The only time she spoke was in response to Judge Jamar K. Walker’s questions, and to enter her pleas. Afterwards, she addressed dozens of supporters outside the courthouse and thanked them for standing by her.
“This is not about me. This is about all of us,” James told the group. “And about a justice system which has been weaponized. A justice system which has been used as a tool of revenge.”
A grand jury in Alexandria indicted James on Oct. 9 on one count of bank fraud and one count of making false statements to a financial institution. Each charge carries a maximum penalty of 30 years in prison and a $1 million fine.
The indictment alleges that in an effort to qualify for a lower interest rate for a home James purchased in August 2020 in Norfolk’s Fairmount Park neighborhood, James misrepresented how she planned to use the two-story, pale yellow house. The mortgage terms required that she use it as a secondary residence, yet the indictment claims James rented it to a family of three. The misrepresentation, the indictment asserted, allowed James to save close to $19,000 over the life of the 30-year loan.
The indictment doesn’t name the person James is alleged to have rented the house to, but a person familiar with the case said James bought it for her great niece and has allowed her and her children to live there rent free.
The home at the center of a federal mortgage fraud case is seen in Norfolk, Virginia, on Oct. 10, 2025. The home is connected to a mortgage fraud charge recently filed against New York Attorney General Letitia James by a federal prosecutor under pressure from President Donald Trump. (Billy Schuerman/The Virginian-Pilot)
James, who successfully sued President Donald Trump in a 2022 civil case accusing him of inflating his real estate assets, has called the charges “baseless” and an attempt by the president to “weaponize” the justice system against his enemies.
The case was filed by interim U.S. Attorney for the Eastern District of Virginia Lindsey Halligan, whom Trump appointed last month to replace the office’s previous leader, Erik Siebert, after Siebert failed to secure charges against James.
Halligan, a former personal attorney for the president who has no experience as a prosecutor, was in court Friday but didn’t speak during the hearing. Instead, Roger Keller, a federal prosecutor from Missouri, represented the government.
A person familiar with the case said the home is occupied by James’ great-niece, Nakia Monique Thompson, and that James bought the house for Thompson and her three children in an effort to help them through some tough times. The source said James has stayed with Thompson at the house on multiple occasions, and that Thompson told a grand jury she’s never paid rent.
On Thursday, James’ defense team filed a motion asking the court to enforce rules prohibiting the attorneys involved in the case from discussing it publically. The motion alleged Halligan had improperly reached out to a journalist for Lawfare and shared internal government information.
This is a developing story. Check back later for updates.
Jane Harper, jane.harper@pilotonline.com
https://www.dailypress.com/2025/10/24/james-pleads-not-guilty/
