A federal grand jury in Norfolk, Virginia, declined to indict New York Attorney General Letitia James on alleged mortgage fraud charges on Thursday, sources said, rejecting the Department of Justice’s effort to refile the case just ten days after a federal judge dismissed the previous indictment. The earlier dismissal was based on the unlawful appointment of the U.S. attorney in the Eastern District of Virginia.
According to sources, prosecutors were unable to convince a majority of grand jurors that James misled a bank to secure favorable mortgage terms. The grand jury’s decision, known as a “no true bill,” represented a notable setback for the DOJ in its attempt to pursue charges against James, who has been a frequent target of former President Donald Trump. A DOJ spokesperson declined to comment.
The allegations centered on a home James purchased in 2020. Prosecutors claimed she misrepresented the property as a second home rather than an investment property, potentially saving around $19,000 over the life of the loan. The indictment, initially secured in October by Trump’s former attorney Lindsey Halligan, was dismissed after Judge Cameron Currie ruled that Halligan was unlawfully serving as U.S. attorney and therefore lacked the authority to bring charges. This ruling also nullified any indictments Halligan had filed against James and former FBI director James Comey.
It remains uncertain whether prosecutors will attempt to bring charges against Comey over alleged false statements to Congress in 2020. Both Comey and James have argued that the indictments were politically motivated and directed by Trump, a claim that may influence whether courts allow the cases to proceed. Investigations into James also revealed evidence that undercut some of the initial mortgage fraud allegations, including questions about the extent to which she personally benefited from the property purchase.