A federal grand jury in Norfolk, Virginia, has rejected the Department of Justice’s attempt to refile mortgage-fraud charges against New York Attorney General Letitia James, according to sources familiar with the proceedings. The decision comes just ten days after a federal judge dismissed the original indictment due to the unlawful appointment of the U.S. attorney who brought the case.
Extraordinary Rebuff to DOJ
Federal prosecutors were unable to persuade a majority of grand jurors that James misled a bank to secure better mortgage terms on a property she purchased in 2020. The grand jury issued a “no true bill,” effectively blocking the case and delivering a rare public rebuke of the DOJ’s efforts to prosecute James—one of President Donald Trump’s most outspoken critics.
The move follows months of political tension. Trump had directly urged the prosecution of James and other perceived adversaries, and his former attorney and aide, Lindsey Halligan, secured the original indictment in October before her appointment was ruled unlawful.
James Responds: “Baseless Charges”
In a statement, James expressed gratitude to grand jurors:
“As I have said from the start, the charges against me are baseless. It is time for this unchecked weaponization of our justice system to stop.”
Prosecutors had claimed James falsely labeled the property as a second home rather than an investment, potentially saving about $19,000 over the life of the loan. But investigators reportedly found evidence that undermined key portions of the original indictment.
Legal Fallout from Dismissed Appointments
U.S. District Judge Cameron Currie tossed out the earlier cases against both James and former FBI Director James Comey, ruling that Halligan had no legal authority to serve as U.S. attorney. As a result, all actions she took—including indictments—were invalidated.
It remains unclear whether prosecutors will attempt once more to charge Comey over allegations of false statements to Congress. Both Comey and James have accused the Justice Department of pursuing politically motivated prosecutions ordered directly by Trump, challenges that could factor heavily into any future legal proceedings.
For more on this story, stay tuned to Que Onda Magazine.