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 court in US District Court in Norfolk, Virginia, on Friday during a brief hearing where her legal team asked for a speedy trial.
Speaking outside of the courthouse after the arraignment, James accused Trump of using the justice system as a vehicle of retribution against her and other critics.
She previously brought charges against others he considers political enemies.
There's no fear today, she said, as supporters outside cheered. On Friday, a judge set a trial date of January 26.
The federal government alleges James bought a three-bedroom home in Norfolk using a mortgage loan that required her to use the property as her secondary residence, which did not allow for shared ownership or timesharing of the home.
The indictment claims the property was not occupied or used by James as a secondary residence, but instead was used as a rental investment property being rented to a family of three.
The alleged misrepresentation allowed James to secure favorable loan terms that would not have been available for an investment property, prosecutors claim.
Sources have indicated that James purchased the home for her great-niece in 2020, who reportedly never paid rent.
James' legal team plans to challenge the appointment of US attorney Lindsey Halligan to her case, arguing that it is politically motivated.
Halligan, appointed by Trump, has taken over the case after the resignation of another prosecutor who reportedly did not find sufficient evidence to charge James.
In addition to challenging the case, James' attorneys are filing a motion to dismiss, asserting that it is vindictive.
James is part of a larger trend where numerous Trump critics have faced investigations or charges. Trump's previous assertions regarding prompt action against political opponents adds context to the current climate.
James previously initiated a civil fraud case against Trump and his organization in 2022, resulting in a verdict where Trump was found liable for fraud but the excessive penalty was later annulled by an appeals court.