New York Attorney General Letitia James has pleaded not guilty to federal charges of bank fraud and making false statements to a financial institution.
James appeared in U.S. District Court in Norfolk, Virginia, on Friday for a brief hearing where her legal team asked for the trial to be expedited.
Speaking outside the courthouse after her arraignment, James accused Trump of using the justice system as a “means of retaliation” against her and other critics.
She has previously brought charges against others whom he considers political enemies.
“There is no fear today,” she said to applause from supporters outside. On Friday, the judge set a trial date of Jan. 26.
The federal government alleges James bought a three-bedroom home in Norfolk using a mortgage that required her to use the property as a secondary residence and did not allow for co-ownership or “time-sharing” of the home.
The indictment alleges that the property was “not occupied or used” by James as a secondary residence, but was instead “used as a rental investment property” and rented to a family of three.
The “misrepresentations” allowed James to obtain favorable loan terms that would not have been available for investment properties, prosecutors allege.
Sources said US media that James bought the house for his great-niece in 2020 and that the relative never paid rent on the house.
James' legal team also said in court papers this week that they plan to challenge the appointment of US lawyer Lindsay Halligan to handle James' case.
Mr. Trump appointed Ms. Halligan, his former personal lawyer, to oversee the case after another U.S. attorney, Eric Siebert, resigned. Siebert was reportedly fired after telling the Justice Department that he did not find sufficient evidence to charge James.
James' lawyers are also filing a motion to dismiss the case on the grounds that it is “vindictive.”
She is one of several Trump critics who have been under investigation or facing criminal charges in recent weeks. The Justice Department has charged Trump's former Federal Bureau of Investigation director James Comey with lying to Congress.
Trump's former national security adviser John Bolton is accused of sending and knowingly storing national defense information.
Last month, Trump took to his social media site, Truth Social, to ask Attorney General Pam Bondi to press charges against his political opponents.
“We cannot delay any longer, it is killing our reputation and credibility,” he wrote.
In 2022, James filed a civil fraud case against Trump and his company, the Trump Organization. Trump was later found guilty of falsifying records to secure better loan deals, resulting in a $500 million (£376 million) fine.
The penalty was overturned by an appeals court, which called the fine excessive, although it confirmed that Trump was responsible for fraud.
