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 the US District Court in Norfolk in Virginia on Friday during a brief hearing in which her legal team asked for a speedy trial.

Speaking outside court after the arraignment – in which a defendant is formally read the charges against them – James accused US President Donald Trump of using the justice system as a “vehicle of retribution” against her.

She previously brought charges against Trump before he won re-election, and is one of several former adversaries his administration has levelled charges against.

“There’s no fear today,” she said, as supporters outside cheered. 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.

Unnamed 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 said in court filings this week that they planned 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 that 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 are under investigation or have faced criminal charges in recent weeks. The Justice Department has also charged Trump’s former FBI director James Comey with making false statements to Congress.

Trump’s former national security adviser, John Bolton, is charged with sending and wilfully retaining national defence information.

Trump called for Attorney General Pam Bondi to bring charges against his political opponents in a social media post last month.

“We can’t delay any longer, it’s killing our reputation and credibility,” he wrote.

James brought a civil fraud case against Trump and his company, the Trump Organization, in 2022. Trump was later found liable of falsifying records to secure better loan deals, leading to a $500m (£376m) fine.

The penalty was thrown out by an appeals court, which called the fine excessive, though it upheld that Trump was liable for fraud.