SAN DIEGO (CNN) Republican Congressman Duncan D. Hunter and his wife, Margaret, pleaded not guilty Thursday morning to federal charges they stole a quarter million dollars in campaign funds to furnish their lavish lifestyle.

After the Hunters were indicted earlier this week for spending campaign money on expenses that included a $14,000 Italian vacation and thousands of dollars on routine items like groceries, bedding and other household items, Hunter said the charges were erroneous and politically motivated.

The Hunters are accused of conspiracy to commit offenses against the United States, wire fraud, falsification of records and prohibited use of campaign contributions, among other charges.

Standing before Judge William Gallo in San Diego, both Hunters remained defiant and showed little emotion. They pleaded not guilty to all of the charges.

When asked about bail or bond, Assistant US Attorney Phillip Halpern suggested $10,000 for Margaret Hunter and $15,000 for Duncan Hunter. Halpern explained that he did not consider either party to be a flight risk and noted their dire financial condition, which was outlined in the indictment.

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