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Grand Jury Refuses To Reindict Letitia James, Derailing Trump-Backed Mortgage Fraud Case

Photo by Michael M. Santiago/Getty Images

A federal grand jury in Norfolk, Virginia, has declined to indict New York Attorney General Letitia James on mortgage fraud allegations. The decision comes just ten days after the Department of Justice sought to refile the case, following a federal judge’s dismissal of the original charges.

James, who had successfully filed charges against President Donald Trump before his re-election, claimed that the case against her was a retaliatory move orchestrated by the president.

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“As I have said from the start, the charges against me are baseless,” James said. “It is time for this unchecked weaponization of our justice system to stop.” James said in a statement obtained by NBC News.

“I am grateful to the members of the grand jury and humbled by the support I have received from across the country. Now, I will continue to do my job standing up for the rule of law and the people of New York,” James said.

Prosecutors accused James of falsely listing a home she purchased in 2020 as a second home instead of an investment property in order to get a better mortgage rate, potentially saving $19,000 over the life of the loan. 

After a call from Trump to prosecute James and other political rivals, the president’s former attorney and aide, Lindsey Halligan, obtained an indictment against

James in October. The judge dismissed the indictment after finding that Lindsey Halligan, the acting U.S. attorney for the Eastern District of Virginia and a former personal attorney to Trump, was unlawfully serving as the U.S. attorney in the Eastern District of Virginia.

U.S. District Judge Cameron Currie concluded that the attorney general lacked the authority to appoint Halligan to the post under federal law, which nullifies the indictments against both James and former FBI director James Comey, who was indicted on charges of making a false statement to Congress and obstructing a congressional investigation.
It’s uncertain whether prosecutors will reissue the charges against James and Comey. 

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