Grand jury declines to re-indict Letitia James

A federal grand jury in Norfolk, Virginia, chose not to indict New York Attorney General Letitia James on Thursday, according to a U.S. official, marking another setback for the government's legal efforts after a judge recently dismissed bank fraud charges against her.

The grand jury rejected the indictment proposal submitted by federal prosecutors. Last week, a judge dismissed charges against both James and former FBI Director James Comey, citing that Lindsey Halligan, the acting U.S. attorney in the Eastern District of Virginia, had been improperly appointed. The court allowed prosecutors the option to refile charges.

Refusal by grand juries to indict is extremely uncommon. Justice Department data shows that during the 2016 fiscal year, out of over 150,000 federal investigations, only six were declined due to a grand jury vote.

James had originally faced allegations of bank fraud and submitting false statements to a financial institution. Authorities claimed she misrepresented a 2020 Norfolk property as her second home to secure a lower mortgage rate, when she allegedly rented it out as an investment. James has denied any wrongdoing and described the case as politically motivated by the Trump administration.

Previously, James had sued Donald Trump in civil court over alleged misrepresentations of his real estate holdings. In 2023, a judge ruled that Trump, his family, and his company repeatedly violated fraud laws, imposing a significant financial judgment. An appeals court later overturned the monetary penalties as "excessive," though some non-financial restrictions on the Trump Organization remained.

Jamess legal team argued that the charges against her were the result of retaliatory prosecution and misconduct by officials at the Justice Department and the Fair Housing Finance Authority, citing Trumps personal interest in pursuing the case.

The pursuit of charges followed a transition in the Eastern District of Virginias U.S. Attorneys Office. Halligan, a former Trump White House staffer and personal attorney, assumed the interim role shortly after her predecessor resigned. Comey was indicted soon afterward, with James following weeks later.

Both James and Comey challenged Halligans appointment, leading U.S. District Judge Cameron Currie to dismiss their indictments without prejudice, leaving open the possibility of new charges. It remains uncertain if the Justice Department will attempt to re-indict Comey for alleged 2020 false statements to Congress, as the statute of limitations may have expired, with legal questions surrounding the validity of his prior indictment.

Author: Aiden Foster