New York Attorney General Letitia James, who successfully prosecuted Donald Trump, has been indicted, the second foe of the US president to be slapped with criminal charges in recent weeks.

James, 66, a Democrat, was indicted on Thursday by a grand jury in Alexandria, Virginia, on one count of bank fraud and a second count of making false statements to a financial institution.

The charges against James were brought one day after another prominent Trump critic, former FBI director James Comey, pleaded not guilty to charges of making false statements to Congress and obstructing a congressional proceeding.

The cases against James and Comey were filed by Trump's handpicked US attorney, Lindsey Halligan, after the previous prosecutor resigned, saying there was not enough evidence against them.

The case against James concerns allegedly false statements she made to obtain favourable loan terms for a property she purchased in Norfolk, Virginia, in 2020.

In a statement, James rejected the charges as "baseless" and said they are "nothing more than a continuation of the president's desperate weaponisation of our justice system."

"The president's own public statements make clear that his only goal is political retribution," she said.

"I am not fearful — I am fearless."

Trump recently publicly urged Attorney General Pam Bondi to take action against James, Comey and others he sees as enemies in an escalation of his campaign against political opponents.

Vindictive prosecution

In addition to James and Comey, Trump has also publicly called for the prosecution of Democratic Senator Adam Schiff and his own former National Security Advisor, John Bolton.

The indictments of James and Comey came after the US attorney for the Eastern District of Virginia, Erik Siebert, stepped down after reportedly telling Justice Department leaders there was insufficient evidence to charge them.

Comey pleaded not guilty on Wednesday to charges of making false statements to Congress and obstructing a congressional proceeding.

The 64-year-old former FBI chief is accused of falsely stating that he had not authorised another FBI employee to be an anonymous source in news reports.

The judge scheduled a trial date of January 5. Comey faces up to five years in prison if convicted.

Comey's lawyer, Patrick Fitzgerald, said he intends to file a motion seeking to have the case dismissed on the grounds it is a vindictive and selective prosecution.

New York Governor Kathy Hochul was among a number of prominent Democratic politicians who came out in defence of James.

"New Yorkers know @NewYorkStateAG James for her integrity, her independence, and her relentless fight for justice," Hochul said.

"What we're seeing today is nothing less than the weaponisation of the Justice Department to punish those who hold the powerful accountable," she added on X.

Senate Democratic minority leader Chuck Schumer said "this is what tyranny looks like."

"President Trump is using the Justice Department as his personal attack dog, targeting Attorney General Tish James for the 'crime' of prosecuting him for fraud -- and winning," the senator from New York said.

In a statement, however, US Attorney Halligan defended the prosecution of James, saying she had committed "intentional, criminal acts and tremendous breaches of the public's trust."