New York Attorney General Letitia James was arraigned in federal court in Norfolk, Virginia, on Friday, facing charges of mortgage fraud. The indictment, secured by U.S. Attorney Lindsey Halligan, accuses James of lying on mortgage documents to obtain favorable loan terms for a property she purchased in 2020.

James, who has been a vocal critic of former President Donald Trump, pleaded not guilty to the charges. She left the courthouse to cheers from supporters, who chanted, "We stand with Tish!" In a statement, James described the case as a misuse of the justice system, stating, "This is about a justice system which has been used as a tool of revenge."

The indictment alleges that James misrepresented the property as a second home to secure a better mortgage rate, while actually using it as an investment property rented to a family. According to the indictment, this misrepresentation allowed her to save nearly $18,000 over the life of the loan.

Halligan, who was appointed by Trump shortly after he publicly called for action against James, stated, "No one is above the law. The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public's trust."

James' legal team plans to challenge Halligan's appointment, arguing it was unlawful. They also filed a motion to prevent prosecutors from leaking information about the case to the media. This follows reports that Halligan communicated with a reporter about the prosecution, which James' lawyers claim violates ethical guidelines.

The judge set a trial date for January 26. If convicted, James faces up to 30 years in prison and significant fines. The case has drawn attention as part of a broader pattern of legal actions against Trump’s political opponents, including former FBI Director James Comey and former national security adviser John Bolton, both of whom have also pleaded not guilty to various charges.

James has previously won a civil fraud case against Trump, which has intensified the political tensions surrounding her indictment. Critics of the prosecution argue that it is politically motivated, while supporters maintain that it is a necessary step to uphold the law.

As the legal proceedings unfold, the implications of this case could have significant ramifications for both James and the political landscape in the United States.