In a second major setback for the Department of Justice, a federal grand jury in Alexandria, Virginia, on Thursday declined to indict New York Attorney General Letitia James on mortgage fraud charges. The development further weakens the Biden-era Justice Department’s controversial case, which has been portrayed by James and her legal team as a retaliatory effort linked to her civil suit against President Donald Trump.
Abbe Lowell, James’ defense attorney, welcomed the outcome, saying, “This makes even clearer that this case should never have seen the light of day.” His statement came after the grand jury reviewed evidence presented by federal prosecutors and refused to hand down an indictment.
James was initially indicted in October on charges of bank fraud and making false statements to a financial institution. But that indictment was thrown out in November by a federal judge who ruled that Lindsey Halligan, the U.S. attorney overseeing the case, was unlawfully appointed by Trump. The judge also tossed related charges against former FBI Director James Comey for the same reason, casting further doubt on the legal standing of Halligan’s role.
Despite the legal cloud hanging over her, James has maintained that the charges are politically motivated. “This is retribution,” she previously said, pointing to her high-profile pursuit of Trump and his real estate empire. Critics have accused the DOJ of attempting to weaponize technicalities in mortgage filings in order to retaliate.
The case stems from James’ 2020 purchase of a three-bedroom home in Norfolk, Virginia. Prosecutors claim she misrepresented the home as her secondary residence to secure better loan terms, even though she allegedly rented it out to tenants and never stayed there. The DOJ argues that the misrepresentation allowed James to save nearly $19,000 on the loan.
Last week, the DOJ made a second attempt to revive the case, presenting similar evidence to a new grand jury. That effort also failed, marking two consecutive rejections from federal juries. Legal analysts note that another attempt to indict James would face significant hurdles in court.
The failed prosecutions have fueled broader concerns about the DOJ’s ability to bring high-profile corruption cases, particularly those involving public officials. With the Halligan appointment ruled unlawful and two grand juries unwilling to indict, questions remain about whether the department will continue to pursue James—or pivot entirely.
James, meanwhile, remains defiant. Her office has continued its focus on civil enforcement actions in New York, while her legal team has signaled they will pursue sanctions against the DOJ for what they call a politically driven abuse of power.
The Justice Department has not ruled out a third attempt to bring charges, but with the judiciary growing skeptical and its previous efforts unraveling, its path forward appears increasingly tenuous.
The post Grand Jury Declines to Indict Letitia James Again, Undercutting DOJ’s Case appeared first on Real News Now.
About Author
