HOUSTON, United States

New York Attorney General Letitia James on Friday pleaded not guilty to charges of alleged mortgage fraud, according to media reports.

James was indicted on Oct. 9 by President Donald Trump’s handpicked US Attorney Lindsey Halligan on one count of bank fraud and one count of making false statements to a financial institution.

"Not guilty, judge, to both counts," James said, entering the plea herself in a federal courtroom in Norfolk, Virginia.

US District Judge Jamar Walker set an initial trial date for Jan. 26. The court proceedings are expected to take "no more" than two weeks, said government attorneys, who estimated they will call between eight to 10 witnesses.

James was released on a personal recognizance bond until the trial begins.

James, who successfully brought a civil fraud charge against the president last year, currently leads multiple lawsuits challenging the Trump administration's policies.

Following Friday's arraignment, James claimed at a news conference that the justice system under Trump has been "used as a tool of revenge" and is nothing but a "vehicle of retribution."

"This is not about me. Yes, this is about all of us. Yeah. And about our justice system, which has been weaponized. Against a justice system, which has been ... used as a tool of revenge," said James.

"But my faith is strong. And my faith is, I have this belief in the justice system, in the rule of law," she added.

In a separate motion, the judge set a deadline of Nov. 1 for James to make her first filing on her claim of vindictive prosecution.

The mortgage fraud charges stem from a home James bought in 2020.

According to the indictment, James falsely described the property as a second home to get an advantageous mortgage rate, but used it as an "investment property," rented to a family of three.

The indictment alleged James collected thousands of dollars in rent and would have saved $17,837 over the life of the mortgage versus a loan at a higher rate.

But in an internal memo to former US Attorney Erik Siebert in September, prosecutors said James purchased the home in Norfolk for her great-niece and immediately allowed her and her children to begin living in the house rent-free, according to ABC News.

"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," Halligan said in a statement. "The facts and the law in this case are clear, and we will continue following them to ensure that justice is served."

If convicted, James faces a maximum of up to 30 years in prison per count, up to a $1 million fine on each count, and forfeiture of the property.