The Justice Department has reportedly failed to secure a new indictment against New York Attorney General Letitia James in a blow to the Trump administration’s efforts to prosecute the top Democratic and vocal critic of the administration’s policies.
A federal grand jury in Norfolk, Va., on Thursday declined to indict James after DOJ prosecutors reintroduced previously dismissed charges of mortgage fraud, multiple news outlets reported, citing sources familiar with the secret court proceedings.
The grand jury’s rejection comes after a federal judge dismissed an earlier indictment against James, ruling that Lindsey Halligan, the federal prosecutor handpicked by Trump to handle the case, had been unlawfully appointed.
James’ attorney Abbe Lowell said the grand jury’s failure to indict is “a decisive rejection of a case that should never have existed in the first place.”
“A federal court threw this case out after President Trump illegally installed a U.S. Attorney to file baseless charges against Attorney General James that career prosecutors refused to bring,” he said in a statement.
“This should be the end of this case,” he added. “If they continue, undeterred by a court ruling and a grand jury’s rejection of the charges, it will be a shocking assault on the rule of law and a devastating blow to the integrity of our justice system.”
James took to social media to celebrate her latest legal win, saying she is “grateful to the members of the grand jury and humbled by the support I’ve received across the nation.”
As I’ve said from the start, these charges are baseless. It’s time for the weaponization of our justice system to stop,” James posted. “I will keep doing my job standing up for New Yorkers.”
The Justice Department declined to comment on the grand jury proceedings. Under federal law, DOJ prosecutors can re-present the charges to another grand jury if they choose.
James was indicted in October by a federal grand jury on one count of bank fraud and one count of making false statements to a financial institution. She denies any wrongdoing and claims the charges are politically motivated.
In the original indictment, prosecutors alleged that James falsely claimed on an application for a federally backed mortgage that she would be living in a Norfolk, Va., home she bought in 2020 for about $137,000 as a secondary residence but allegedly used it as an investment property. That allowed James to receive a favorable interest rate, saving her nearly $19,000 over the life of the loan, prosecutors allege.
Last week, U.S. District Judge Cameron Currie ordered the charges against James and former FBI director James Comey dismissed on the grounds that Halligan, a former White House aide, was unlawfully appointed to the job.
