New York Attorney General Letitia James says she's 'totally innocent' of fraud charges

New York Attorney General Letitia James declared herself "totally innocent" Thursday of federal fraud charges brought by President Donald Trump's handpicked U.S. attorney for the Eastern District of Virginia.

"It's baseless," James said in response to a question from ABC News, the first time she has answered questions about the indictment. "It's nothing more than retribution, retribution for doing my job."

James last year brought a successful civil fraud case against Trump, his family and his business. New York's intermediate appellate court subsequently upheld the judgment holding Trump liable for fraud but struck down the $454 million penalty.

James is facing two mortgage-related charges accusing her of using a home in Norfolk, Virginia, as a "rental investment property" while claiming it would be her "secondary residence," saving herself allegedly potentially $19,000 over the life of the loan.

She was indicted last week over the objection of career prosecutors who, sources tell ABC News, conducted a five-month investigation and found insufficient evidence, in what critics say is part of a campaign of retribution by President Donald Trump against his perceived political foes.

"We will vigorously defend those charges, those baseless charges," James said. "I want everyone to know it is completely baseless and I am totally innocent."

James appeared alongside New York Gov. Kathy Hochul to tout a federal judge's ruling earlier Thursday restoring nearly $34 million in counterterrorism funding that the Trump administration tried to withhold from the New York transit system.

Hochul decried the indictment against James.

"It is absolutely the weaponization of the Department of Justice and that is what's so scary about this," Hochul said. "These are dark, scary days."