Grand Jury Declines to Re-Indict New York AG Letitia James in Mortgage Fraud Case

NORFOLK, Va. — A federal grand jury declined Thursday to revive charges against New York Attorney General Letitia James, marking the second failed attempt by the Justice Department in less than two weeks to prosecute one of President Donald Trump's most prominent political adversaries.

The decision came after a judge dismissed an initial indictment against James last month, ruling that the lead prosecutor, Lindsey Halligan, had been unlawfully appointed as interim U.S. attorney for the Eastern District of Virginia. Halligan, a former White House adviser and Trump ally, had personally presented the case to the original grand jury and signed the indictment.

The grand jury in Norfolk, Virginia, rejected prosecutors' renewed bid to charge James with bank fraud and making false statements to a financial institution related to her 2020 purchase of a home in the city, where she has family. The allegations centered on James signing a "second home rider" document agreeing to use the property primarily for personal enjoyment for at least one year, which prosecutors claimed she violated.

James, who successfully led a civil fraud case against Trump and his company in 2023 resulting in a $450 million judgment, has denied any wrongdoing and called the charges politically motivated. "As I have said from the start, the charges against me are baseless," she said in a statement Thursday.

Her lead defense attorney, Abbe Lowell, hailed the grand jury's refusal as "a decisive rejection of a case that should never have existed in the first place." He accused the Trump administration of illegally installing Halligan to pursue "baseless charges that career prosecutors refused to bring."

The dismissal of the original case also cleared separate charges against former FBI Director James Comey, another Trump critic. U.S. District Judge Cameron McGowan Currie ruled that Halligan's appointment violated federal law by evading Senate confirmation, nullifying her actions, including the indictments.

Prosecutors had vowed to appeal but instead sought a new indictment with a properly appointed team. Sources familiar with the matter said the Justice Department could attempt a third grand jury presentation, though such rejections by grand juries are rare.

The case underscores ongoing tensions between the Trump administration and Democratic officials who have pursued legal actions against the president, amid broader concerns about the politicization of federal prosecutions.

--REAL AMERICA'S VOICE

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