Why Trump’s new prosecutor indicted the New York attorney general

New York Attorney General Letitia James pleaded not guilty in federal court in Norfolk, Va., on Friday to mortgage fraud charges after President Trump publicly demanded that the Justice Department “act fast” to charge his perceived political adversaries.

James was charged with two counts: one count of bank fraud and one count of making false statements to a financial institution. If convicted, she faces up to 30 years in prison and maximum fines of $1 million on each count.

A trial date was set for Jan. 26, 2026, and James was released on her own recognizance.

James is the latest political figure to face prosecution following Trump’s directive. The first, former FBI Director James Comey, pleaded not guilty to charges of lying to Congress when he was arraigned in Alexandria, Va., earlier this month. John Bolton, Trump’s former national security adviser who has been a critic of the president, pleaded not guilty in Greenbelt, Md., last week to federal charges of mishandling classified information.

“This is not about me,” James said outside the courthouse following her arraignment. “This is about all of us, and about a justice system, which has been weaponized — a justice system that has been used as a tool of revenge and a weapon against those individuals who simply did their job and stood up for the rule of law.

“There’s no fear today, no fear,” she added. “Because I believe that justice will rain down like water and righteousness like a mighty stream.”

The charges against James were brought by Lindsey Halligan, U.S. attorney for the Eastern District of Virginia — and the same prosecutor who charged Comey. She was sworn in on Sept. 22 after her predecessor, Erik Siebert, resigned in response to pressure from the president to bring charges against Comey and James.

Trump then nominated Halligan — a White House aide who had served as his personal attorney and has no prosecutorial experience — to replace Siebert and “get things moving.”

“We can’t delay any longer,” Trump wrote in a Sept. 20 Truth Social post addressed to Attorney General Pam Bondi that named James, Comey and California Sen. Adam Schiff as targets for prosecution. “They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!”

In a statement, Halligan argued that the charges against James “represent intentional, criminal acts and tremendous breaches of the public’s trust.”

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

James’s attorneys told the court that they plan to file a motion to dismiss the case over the “unlawful appointment” of Halligan. Comey filed a similar motion. They also intend to file a separate motion to dismiss challenging the Justice Department’s “vindictive and selective” prosecution.

Why Trump is targeting James

Trump has long been critical of James, who sued the Republican president and his administration dozens of times and oversaw a successful civil fraud case accusing him of defrauding banks by dramatically overstating the value of his real estate holdings.

The president has referred to James as “scum,” “corrupt” and “racist,” insisting that she should be removed from her job after leading a “WITCH HUNT” against him.

“It looks to me like [James] is very guilty of something,” Trump told reporters last month. “But I really don’t know.”

Before resigning, Siebert had been investigating James for months. In 2023, she purchased a home in Norfolk for her niece, then listed it as her primary residence on her loan application. Primary residence mortgages typically mean a lower interest rate and a lower down payment; such mortgages also require a lower credit score to qualify. Mortgage loans for a second home usually cost more and are harder to get.

James, a second-term Democrat, has denied wrongdoing. She has said she made an error when filling out a limited power of attorney form but quickly rectified it and didn’t intend to deceive her lender.

According to ABC News, Siebert and other career prosecutors in Virginia eventually determined there was “no clear evidence to prove that James had knowingly committed mortgage fraud.” The form in question, which James’s niece used to sign documents on James’s behalf when closing on the home, was “never considered by the loan officers who approved the mortgage,” ABC News reported. But Trump officials “pushed Siebert to nevertheless bring criminal charges against her.” Siebert resigned on Sept. 19.

“He didn’t quit,” Trump insisted on social media. “I fired him!”

The indictment that was ultimately filed by Halligan focuses on a different Norfolk home that James purchased in 2020. It accuses James of using the house as a rental property after saying on loan documents that it would be a second residence.

Trump allies have also accused Federal Reserve Gov. Lisa Cook of mortgage fraud. So far, Cook has not been charged with wrongdoing, but the president has tried to fire her anyway. The Supreme Court has said Cook can continue to serve at least until early 2026, when it plans to hear oral arguments in the case.