Marilyn Mosby's legal team argues key motions in court ahead of mortgage fraud trial

BALTIMORE - Former Baltimore City State's Attorney Marilyn Mosby was back in court Friday as a judge decided some key issues ahead of her next trial on mortgage fraud. 

Mosby was convicted of perjury in November for lying to withdraw money from her retirement account to buy two vacation homes in Florida.

Her next trial on mortgage fraud is set to begin on January 18 in Greenbelt, Maryland.

Mosby is accused of failing to disclose a tax lien and lying about whether she would rent out one of the properties to obtain a lower mortgage rate. 

"The question is whether Ms. Mosby lied when she filled out the mortgage applications," prosecutors said to the judge.

The alleged mortgage fraud allowed her to receive a lower interest rate for her vacation properties. 

Mosby argues the banks did not change the terms of the loans when they found out.    

In a blow to Mosby's defense, the judge will not allow past statements that she was unaware of the tax lien and blame her ex-husband, Baltimore City Council President Nick Mosby, for the issue. 

Nick Mosby is a potential witness in the next trial. 

Marilyn Mosby's defense argues that jurors should hear statements about her tax lien including, "the tax lien on the property is Nick's issue."

The judge noted they were made far after the mortgage application was submitted and may not show her state of mind at the time she got the mortgage.  

The judge said she's not sure what Marilyn Mosby's statements have to do with the fraud case. 

"I'm not understanding the relevance of what Mr. Mosby thought or did," the judge said.

The defense says they show Marilyn Mosby was not aware of a tax lien that was unreported on her mortgage application.  

The government says Mosby attempted to "lie and mislead" and that "she was aware of ongoing investigations and had ample reason to mislead and make statements" after the fact to help clear her of wrongdoing.

The judge, for now, will not allow part of a conversation where Marilyn Mosby said she was "livid" upon learning of the tax lien and thought her husband "took care of it." The judge said the defense has to provide more context if they want jurors to hear it.

Public defender James Wyda argued they would then have to recall witnesses from her last trial and it would "deny her a right to a fair trial" for mortgage fraud.

In a victory for the defense, the judge will bar the prosecution from mentioning Marilyn Mosby's recent perjury conviction because it would unfairly prejudice the jury.

However, they can introduce evidence about Mosby's financial situation to prove her intent and can mention Mosby withdrew retirement money under CARES Act to buy homes.  

The government can mention Marilyn Mosby's perjury conviction if she takes the stand. They can cross-examine her and ask about it as it relates to her credibility according to the judge.  

Prosecutors cannot refer to Mosby's Florida vacation properties as "luxury properties," according to judge's ruling.

They also cannot reveal she sold one property at a profit. But they can show pictures of the homes and their descriptions. 

Marilyn Mosby left the courtroom without comment.  

A judge ruled that Mosby will not be sentenced for her perjury conviction until her mortgage fraud trial is complete.