A federal grand jury on Thursday declined to indict New York Attorney General Letitia James, marking a major blow to prosecutors who had refiled mortgage-fraud charges against her.
According to the New York Post, James, 67, had originally been charged with two counts — bank fraud and making false statements to a financial institution — over a six-figure loan she secured in 2020 to purchase a second home in Norfolk, Virginia.
The case began when an indictment was handed up in early October in Alexandria, Va. But on Nov. 24, U.S. District Judge Cameron Currie dismissed that indictment, finding that interim U.S. Attorney Lindsey Halligan “had no lawful authority” to bring the charges due to questions surrounding her appointment.
In light of that dismissal, new prosecutors attempted to revive the case. A second grand jury was empaneled — but this time, the jurors declined to return an indictment based on the revised mortgage-fraud charges, according to a source familiar with the proceedings.
The decision represents a setback for investigators, though it does not preclude them from filing new charges. Prosecutors retain a six-month window to attempt another indictment, per the rules in the wake of Judge Currie’s ruling.
For James, the grand jury’s decision is a reprieve. But as the legal process remains open, the question of whether the case will reemerge remains very much alive.
