A federal grand jury in Norfolk, Virginia has declined to indict New York Attorney General Letitia James on alleged mortgage fraud charges, sources say. The decision came just ten days after a federal judge dismissed an earlier case against James due to the unlawful appointment of the U.S. attorney in the Eastern District of Virginia.
Prosecutors had alleged that James, who successfully sued former President Donald Trump in a civil fraud case last year, misrepresented a 2020 home purchase as a second home rather than an investment property to secure a more favorable mortgage rate, potentially saving $19,000 over the life of the loan. Sources say the grand jury rejected the charges, returning a “no true bill.”
The grand jury’s decision is being seen as a notable rebuke of the Department of Justice’s attempt to bring charges against James, a political adversary of Trump who has repeatedly called for her prosecution.
James issued a statement following the grand jury’s decision:
“As I have said from the start, the charges against me are baseless. It is time for this unchecked weaponization of our justice system to stop. 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.”
The case drew national attention after Trump’s former attorney and aide, Lindsey Halligan, secured an indictment against James in October, which was later dismissed by a judge due to Halligan’s improper appointment as U.S. attorney.
