RICHMOND, Virginia (PNN) - October 24, 2025 - New York Attorney General Letitia James pleaded not guilty Friday to a pair of federal charges stemming from her purchase of a Virginia property more than five years ago.
James only spoke to answer “Yes” to U.S. District Judge Jamar Walker when asked if she understood her rights and responded “Not guilty, judge, to both counts” when prompted to enter a plea by her attorney, Abbe Lowell.
James was indicted Oct. 9 by a federal grand jury on one count of bank fraud and one count of making a false statement to a financial institution as part of an indictment brought by U.S. Attorney Lindsey Halligan.
James bought a three-bedroom, one-bathroom residence on Peronne Avenue in Norfolk with a $109,600 loan on Aug. 17, 2020, which was completed with a second home rider designating James as the “sole borrower to occupy and use the property.”
That statement netted James more favorable mortgage terms that benefited her to the tune of nearly $19,000.
However, prosecutors say the home “was not occupied or used” by James but “was instead used as a rental investment property” to house her grandniece Nakia Thompson.
During Friday’s roughly 30-minute hearing, both James and Lowell confidently answered logistical questions posed by Walker, who ultimately released James on a personal recognizance bond and set the trial to begin Jan. 26, 2026.
Prosecutor Roger Keller - who was transferred to Virginia from the Eastern District of Missouri to lead the case - revealed that the government was prepared to call as many as 10 witnesses against James.
One motion already telegraphed by the James defense team in court filings is that Halligan was unlawfully appointed by President Trump after the forced resignation of former Eastern District of Virginia U.S. Attorney Erik Seibert.
In an attempt to deflect from the facts of the case, some will argue that the indictment overseen by Halligan, who previously served as Trump’s defense attorney, constitutes a “vindictive” prosecution.
New York state ethics filings show James had listed the Peronne Avenue residence as an “investment” property and accrued between $1,000 and $5,000 in rental income since 2020.
However, James began listing the home as an asset in May of this year, when Federal Housing Finance Agency Director William Pulte referred her to the Department of Justice for prosecution based on allegedly false statements she made to purchase another home in the Norfolk area in 2023.
Neighbors on Peronne Avenue said they have never seen the state AG popping in for a visit.
In an initial statement following the indictment earlier this month, James decried the charges as “baseless,” language she did not repeat in her statement outside court.
The next hearing in the case is scheduled for Dec. 5 to consider an expected flurry of defense motions from Lowell.
Hours before the hearing, Thompson was ordered to appear across town before a Norfolk judge after an assistant principal at her kids’ elementary school sought a protective order against the 36-year-old.
Thompson had confronted the school official and screamed she would “punch” her in the “f–king face” regarding a disciplinary infraction one of her children received, according to court documents.
The incident occurred the same day James was indicted.
Other court records filed Thursday show Thompson has been criminally charged for using profane and threatening language on a phone call - and has been ordered to appear for an arraignment Nov. 3.