NORFOLK, Virginia — New York Attorney General Letitia James pleaded not guilty on Friday to federal charges of bank fraud and making false statements to a financial institution, rejecting prosecutors’ claims that she lied on a 2020 mortgage application to obtain favorable loan terms for a Virginia property.

James, 67, appeared before U.S. District Judge Jamar Walker, who was appointed to the federal bench by former President Joe Biden, during a morning arraignment at the Walter E. Hoffman U.S. Courthouse in Norfolk. The proceeding marked a dramatic turn for the New York Democrat, who campaigned on and built her political profile by bringing a civil fraud lawsuit against President Donald Trump and his business prior to his reelection.