A federal grand jury in Norfolk, Virginia, declined to indict New York Attorney General Letitia James on mortgage-fraud charges on Thursday, sources said. The dismissal came after prosecutors sought to refile the case just 10 days following a federal judge’s decision that had voided an earlier indictment because the U.S. attorney in the Eastern District of Virginia had been unlawfully appointed.
Prosecutors had accused James of misleading a bank by listing a home she bought in 2020 as a second residence rather than an investment property, an act they said resulted in roughly $19,000 in favorable mortgage terms over the life of the loan. Grand jurors were not persuaded by the evidence presented and returned a “no true bill,” effectively rejecting the DOJ’s attempt to bring charges.
A Justice Department spokesperson declined to comment. James issued a statement thanking the grand jurors, calling the allegations baseless and saying the matter illustrated what she described as an inappropriate weaponization of the justice system.
Background to the case includes public pressure from former President Donald Trump calling for prosecutions of political opponents. After that pressure, attorney Lindsey Halligan secured an indictment against James in October. U.S. District Judge Cameron Currie later dismissed that indictment, finding Halligan had been unlawfully appointed as a U.S. attorney under federal law; Currie’s ruling nullified actions taken by Halligan, including the indictments of James and former FBI Director James Comey.
It is not yet clear whether prosecutors will try again 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 the cases are politically motivated and vindictive—arguments that could affect whether any charges move forward to trial.
Earlier reporting by ABC News indicated investigators looking into James’s mortgage also found evidence that undercut some of the allegations in the September indictment, including diminishing the extent to which she personally benefited from the purchase.