New York Attorney General Letitia James has pleaded not guilty in Trump’s mortgage fraud case.

NORFOLK, Va. (AP) — New York Attorney General Letitia James accused the Trump administration of using the justice system “as a tool for retaliation” after she pleaded not guilty Friday to federal charges in a mortgage fraud case that the president pressured the Justice Department to bring forward.

James’s first court appearance in Virginia sets the stage for a high-stakes legal battle between the Republican administration and Trump’s longtime Democratic opponent, whom he has angered with a major civil fraud case against him.

He watches: New York Attorney General Letitia James was indicted on fraud charges after pressure from Trump

She is the third Trump opponent to appear before a judge this month on federal charges, raising concerns that the president is using the Justice Department to seek retaliation after his legal troubles. Justice Department leaders have defended these cases and say it was the Biden administration – which has charged Trump in two federal cases – that has used the justice system as a weapon.

James left the courtroom smiling to the cheers of dozens of waiting supporters, who chanted: “We stand with Tish!” She declared that the case was about “a justice system that has been used as a tool for revenge…and a weapon against those individuals who simply did their jobs and stood up for the rule of law.”

“My faith is strong, I have this faith in the justice system and the rule of law, and I have faith in America,” James said, adding: “There is no fear today.”

The judge set a trial date for January 26. James’ attorney, Abby Lowell, told the judge that the defense would seek to have the case dismissed, arguing that it was a retaliation prosecution brought at the direction of the president.

Read more: Comey’s lawyers say the case against him is motivated by “personal animosity” toward Trump and should be dismissed

James was indicted this month after the Trump administration fired the federal prosecutor who was overseeing the investigation, and the president publicly called on the Justice Department to take action against James and other political opponents. She faces charges of bank fraud and making false statements in connection with a 2020 home purchase in Norfolk, Virginia.

The indictment stems from James’ purchase of a modest home in Norfolk, where she has family. During the sale, she signed a standard document called a “second home tenant” in which she agreed to keep the property primarily for her “personal use and enjoyment for at least one year,” unless the lender agrees otherwise.

Instead of using the house as a second residence, as the indictment alleges, James rented it to a family of three. According to the indictment, the misrepresentation allowed James to obtain favorable loan terms not available for investment properties.

James was first elected in 2018 as New York State’s top barrister, after serving in elected office in New York City. She is the first woman elected to the position of state attorney general.

James has been a frequent target of Trump’s wrath, especially since she won a stunning ruling against the president and his companies in a lawsuit alleging that he defrauded banks by overstating the value of his real estate holdings on financial statements. An appeals court overturned the fine, which had swelled to more than $500 million with interest, but upheld a lower court’s ruling that Trump committed fraud.

Read more: The Trump administration’s full indictment of New York Attorney General Letitia James

James’ indictment came after Eric Seibert resigned as US Attorney for the Eastern District of Virginia amid pressure from Trump administration officials to file the case. Seibert was replaced by Lindsey Halligan, a White House aide and former Trump lawyer who had never before served as a federal prosecutor and presented James’ case to the grand jury herself.

After Seibert’s resignation, Trump, in an unusual social media post, called on Attorney General Pam Bondi to prosecute James and other political opponents, noting that he had been impeached and indicted himself multiple times. “It cannot delay any longer, as this kills our reputation and credibility,” Trump wrote to the administration, adding: “Justice must be done now!!!”

Defense lawyers have said they intend to challenge Halligan’s appointment, a move also taken this week by lawyers for former FBI Director James Comey in a different case brought by Halligan. Comey was accused of lying to Congress in a criminal case filed days after Trump asked the attorney general to prosecute him and pleaded not guilty.

James’ lawyers also requested an order barring prosecutors from disclosing to the media information about the investigation, or materials from the case, outside of court.

The suggestion follows revelations earlier this week that Halligan contacted via an encrypted text messaging platform a reporter from Lawfare, a media organization that covers legal and national security issues, to discuss the James trial and complain about its coverage. The reporter published the conversation that took place between her and Halligan.

The proposal also demands that the government be required to maintain all communications with media representatives as well as prevent the deletion of any records or communications related to the investigation and prosecution of the case.

A third Trump opponent, former National Security Advisor John Bolton, pleaded not guilty last week to charges that he sent classified information via email to family members and kept top-secret documents at his home in Maryland.

The Justice Department is also investigating mortgage fraud allegations against Democratic Sen. Adam Schiff of California, whom Trump has called for impeachment over allegations involving a property in Maryland. In a separate mortgage investigation, authorities are investigating allegations against Federal Reserve Board member Lisa Cook, who is challenging the Trump administration’s efforts to remove her from her job. Schiff and Cook denied any wrongdoing.

Richer reported from Washington and Peltz from New York. Associated Press correspondent Eric Tucker in Washington contributed.