Letitia James Pleads Not Guilty in Mortgage Fraud Case

New York Attorney General Letitia James pleaded not guilty Friday to a pair of federal charges stemming from her purchase of a Virginia property more than five years ago — before mangling remarks by America’s greatest civil rights leader.

The smiling, buoyant-seeming James only spoke to answer “Yes” to US District Judge Jamar Walker when asked if she understood her rights and responded “Not guilty, judge, to both counts” when prompted to enter a plea by her attorney, Democratic powerhouse Abbe Lowell.

In brief remarks following her arraignment, the 67-year-old shamelessly ripped off Martin Luther King Jr.’s “I Have a Dream” speech as she vowed to “not be deterred” in her legal fight — without expressly proclaiming her innocence.

“I believe that justice will rain down like water and righteousness like a mighty stream,” she told supporters who chanted “We Stand With Tish!” and “No Fear!” — a conscious callback to MLK’s line: “We will not be satisfied until justice rolls down like waters, and righteousness like a mighty stream.”

James was indicted Oct. 9 by a federal grand jury on one count of bank fraud and one count of making a false statement to a financial institution as part of an indictment brought by interim US Attorney Lindsey Halligan.

The longtime Donald Trump foe bought a three-bedroom, one-bathroom residence on Peronne Avenue in Norfolk with a $109,600 loan on Aug. 17, 2020, which was completed with a second home rider designating James as the “sole borrower to occupy and use the property.”

That statement netted the Empire State’s top law enforcement officer more favorable mortgage terms that benefited her to the tune of nearly $19,000.

However, prosecutors say the home “was not occupied or used” by James, but “was instead used as a rental investment property” to house her grandniece Nakia Thompson.

During Friday’s roughly 30-minute hearing, both James and Lowell confidently answered logistical questions posed by Walker, who ultimately released James on a personal recognizance bond and set the trial to begin Jan. 26, 2026.

Prosecutor Roger Keller — who was transferred to Virginia from the Eastern District of Missouri to lead the case — revealed that the government was prepared to call as many as 10 witnesses against James.

One motion already telegraphed by the New York AG’s defense team in court filings is that Halligan was unlawfully appointed by President Trump after the forced resignation of former Eastern District of Virginia US Attorney Erik Seibert.

Others will argue that the indictment overseen by Halligan, who previously served as Trump’s defense attorney, constitutes a “vindictive” prosecution as well as that the US attorney has improperly reached out to members of the media.

During the hearing, Lowell brought Judge Walker’s attention a Lawfare article published Monday that he claimed posed an issue of Halligan having made “extrajudicial statements” to the media, though he requested no formal sanction from the court.

Halligan reached out to Lawfare senior editor Anna Bower to cast doubt on a New York Times report disclosing that Thompson testified to a grand jury that she never paid rent on the property and her great aunt James visited several times a year.

Lowell and Keller clashed over the defense’s claim that Halligan was required to keep a “log” of “any communications with the media.”

“If we’re going to do one for the government,” Keller suggested, one should also be kept for James — who has frequently spoken in her defense in interviews and on social media.

“Rules that restrict lawyers do not restrict a defendant,” Lowell countered.

Walker did not immediately issue an order, though Lowell had filed a motion Thursday requesting the log and barring prosecutors from making any future extrajudicial remarks to the press.

“This is not about me,” the New York AG told her supporters. “This is about all of us and about a justice system which has been weaponized. … This justice system which has been used as a tool of revenge — and a weapon against those who simply did their jobs and stood up for the rule of law.”

“But my faith is strong!” the attorney general added. “I have this belief in the justice system and the rule of law. And I have a belief in America and all of its individuals who have stood with me – not only in New York but all across this nation.”

“I have heard from just about every jurisdiction in this nation who have said, ‘Stand up and be tall. Never ever bow down or back down or break or bend,'” James went on.

New York state ethics filings show James had listed the Peronne Avenue residence as an “investment” property and accrued between $1,000 and $5,000 in rental income since 2020.

However, James began listing the home as an asset in May of this year, when Federal Housing Finance Agency Director William Pulte referred her to the Department of Justice for prosecution based on allegedly false statements she made to purchase another home in the Norfolk area in 2023.

Neighbors on Peronne Avenue who spoke with The Post last week said they have never seen the state AG popping in for a visit.

In an initial statement following the indictment earlier this month, James decried the charges as “baseless,” language she did not repeat in her statement outside court.

“This is nothing more than a continuation of the president’s desperate weaponization of our justice system,” she said at the time. “He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York state attorney general.”

James won a civil judgment against the Trump Organization last year for allegedly inflating the value of its real estate empire. The president was ordered to pay $355 million in penalties but successfully appealed in August to have the fine thrown out.

The AG’s office has appealed for reinstatement of the judgment, which had grown to more than $500 million with interest.

The next hearing in the case is scheduled for Dec. 5 to consider an expected flurry of defense motions from Lowell.

Hours before the hearing, Thompson was ordered to appear across town before a Norfolk judge after an assistant principal at her kids’ elementary school sought a protective order against the 36-year-old.

Thompson had confronted the school official and screamed she would “punch” her in the “f–king face” regarding a disciplinary infraction one of her children received, according to court documents.

The alleged incident occurred the same day James was indicted.

Other court records filed Thursday show Thompson has been criminally charged for using profane and threatening language on a phone call — and has been ordered to appear for an arraignment Nov. 3.