James was shamed earlier this year by the release of controversial pictures showing him posing in military gear and appearing to give a Nazi salute.
But the "LA Ink" star has moved quickly to distance herself from the rumors, insisting she "celebrates diversity."
In a letter to gossip blogger Perez Hilton, she writes, "I am extremely disappointed in the story you ran about me today alleging that I was anti-Semitic and a Nazi-sympathizer. I state it clearly and for the record that both of these allegations are untrue.
"I am a proud Latina who celebrates diversity and embraces all of humanity. I need to make it clear that the photo was forged..."