Overview
- James entered her plea in federal court in Norfolk to charges of bank fraud and making false statements tied to a 2020 mortgage for a Norfolk, Virginia home.
- Prosecutors allege she misrepresented the property's intended use to secure better loan terms, with claimed lifetime savings of roughly $18,000–$19,000.
- U.S. District Judge Jamar Walker released her on her own recognizance and scheduled trial for January 26, 2026.
- Her lawyers also asked the court to restrict prosecutors' extrajudicial comments after reporting showed Halligan exchanged messages about grand jury matters with a legal journalist.
- The case has drawn scrutiny after President Trump pushed for prosecutions, Halligan replaced Erik Siebert as U.S. attorney over career prosecutors' objections, and internal memos reportedly noted a relative lived in the home rent‑free with only $1,350 reported in rent.