New York Attorney General Letitia James pleaded not guilty to charges of mortgage fraud during an arraignment hearing in Norfolk, Virginia, on Oct. 24.
James stands accused of one count of bank fraud and one count of making false statements to a financial institution, after she said on mortgage documents that a house she purchased in Norfolk would be used as a secondary residence.
The government claims that she instead used that home as a rental property for a family of three.
Designating the property as a second home instead of a rental property allowed James to save nearly $19,000 in interest and tax credits, the government alleged….