During her arraignment in federal court in Norfolk, Virginia, James firmly rejected the allegations, describing the prosecution as “a politically driven act of revenge” orchestrated by former President Donald Trump and his allies.

According to court filings, prosecutors claim James misrepresented the home as her secondary residence to qualify for lower interest rates, while it was allegedly used as a rental property. The property, located in Norfolk, has also been linked to her grandniece, who was recently charged in a separate local case.

Letitia James, who rose to prominence after leading the civil fraud lawsuit against Trump and the Trump Organization, insisted that the charges are retaliation for her efforts to hold powerful figures accountable.

> “This is not justice — it’s retribution,” James said outside the courthouse. “I have always upheld the law without fear or favor, and I will continue to do so.”

The case has already sparked political controversy. A federal prosecutor who reportedly opposed charging James was fired earlier this month after allegedly mishandling case information, raising questions about the independence of the investigation.

Legal experts say the case against James is unprecedented, marking one of the few instances in U.S. history where a sitting state attorney general faces federal criminal charges.

If convicted, James could face up to 30 years in prison, though legal analysts note such a sentence would be highly unlikely for a first-time, non-violent offense.

The next court hearing is scheduled for late November, as both sides prepare for what is expected to be a politically charged legal battle.