A federal grand jury in Norfolk, Virginia, refused to indict New York Attorney General Letitia James on Thursday, sources said, turning down the Department of Justice’s attempt to refile mortgage-fraud charges just 10 days after a federal judge dismissed an earlier indictment because of the unlawful appointment of the U.S. attorney in the Eastern District of Virginia.
Prosecutors were unable to persuade a majority of grand jurors to approve charges that James misled a bank to obtain favorable mortgage terms by listing a home she purchased in 2020 as a second home rather than an investment property, allegedly saving about $19,000 over the life of the loan, sources said. The grand jury returned a “no true bill,” a rebuke of the DOJ’s effort to bring the case.
A Justice Department representative declined to comment. James issued a statement thanking the grand jurors and calling the charges baseless, saying, “It is time for this unchecked weaponization of our justice system to stop.”
Background: President Donald Trump had publicly called for prosecution of political opponents, and his former attorney and aide Lindsey Halligan secured an indictment against James in October after such pressure. U.S. District Judge Cameron Currie later dismissed that indictment, finding Halligan had been unlawfully appointed as U.S. attorney under federal law. Currie’s ruling nullified actions taken by Halligan, including indictments of James and former FBI Director James Comey.
It remains unclear whether prosecutors will attempt to bring charges against Comey over alleged false statements to Congress in 2020. Both Comey and James have filed legal challenges to their indictments, arguing they were vindictively and politically motivated — arguments that may influence judges assessing whether cases should proceed to trial.
ABC News previously reported that investigators probing James for mortgage fraud uncovered evidence that appeared to undercut some allegations in the September indictment, including reducing the extent to which James personally profited from the property purchase.
