NEW YORK FN) — New York Attorney General Letitia James pleaded not guilty Friday to a single count of mortgage fraud, a case that has sent shockwaves through political circles and drawn sharp reactions from both allies and opponents.
James, a Democrat who has built her career on prosecuting financial misconduct, entered her plea at a Manhattan courthouse. Prosecutors allege she made false statements on a 2018 mortgage application for a Brooklyn townhouse, an accusation James has called “baseless and politically motivated.”
“This charge is nothing more than a desperate attempt to punish me for doing my job,” James said in a brief statement outside court. “I have spent my career holding powerful people accountable, and I will not be intimidated.”
A spokesperson for the U.S. Justice Department said the case would be “handled in accordance with the law and the facts, without political consideration.” White House Press Secretary Karine Jean-Pierre declined to comment directly but said President Joe Biden “believes in the independence of the justice system.”
Former President Donald Trump, a frequent target of James’ investigations, called the case “a long-overdue reckoning.” “Letitia James has been after me from day one,” Trump said in a statement. “Now she’s finally being held to the same standard she tried to apply to others.”
Two other Trump rivals — Democratic Sen. Adam Schiff and Federal Reserve Board Governor Lisa Cook — remain under criminal investigation and have also denied wrongdoing. More than half of Americans, including about one in three Republicans, believe Trump is using federal law enforcement to target his enemies, according to a Reuters/Ipsos poll this month.
Last year, James won a 454.2 million Dollars penalty against Trump after a judge found he fraudulently inflated his net worth to deceive lenders. A New York state appeals court in August overturned the penalty, which had grown to more than 500 million Dollars with interest, but upheld the finding that Trump was liable for fraud.
Some homeowners’ rights groups expressed frustration, saying the case against James could undermine public trust in mortgage fraud enforcement. “If these allegations are proven true, it would be a blow to the fight against financial misconduct,” said Rebecca Allen, director of the National Homeowners Alliance. “No one should be above the law — not even the attorney general.”
Legal experts say the case could drag on for months as James’ defense team challenges the evidence. The next court hearing is scheduled for December, and prosecutors have yet to say whether they plan to expand the investigation.
