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 had 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 26 January.
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, and 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 and was being rented to a family of three.
The misrepresentation allowed James to obtain favourable loan terms that would not have been available for an investment property, prosecutors claim.
Sources have told US media that James bought the home for her great-niece in 2020 and that the relative never paid rent for the home.
James' legal team also stated in court filings this week that they plan to challenge the appointment of US attorney Lindsey Halligan to James' case. Trump appointed Ms Halligan, his former personal attorney, to oversee the case after another US prosecutor, Erik Siebert, resigned. Siebert reportedly was ousted after he told the justice department he had not found sufficient evidence to charge James.
James' attorneys also are filing a motion to dismiss the case on the grounds that it is vindictive.
She is one of several Trump critics who have faced investigation or charges in recent weeks. The justice department charged Trump's former Federal Bureau of Investigation director James Comey with making false statements to Congress.
Trump's former national security adviser, John Bolton, is charged with sending and willfully retaining national defense information.
Last month, Trump called on his social media site Truth Social for Attorney General Pam Bondi to bring charges against his political opponents, stating, We can't delay any longer, it's killing our reputation and credibility.
James previously brought a civil fraud case against Trump and his company, resulting in a $500 million fine, which an appeals court later deemed excessive, while upholding Trump's liability for fraud.
