A federal grand jury in Norfolk, Virginia, made headlines on Thursday by refusing to indict New York Attorney General Letitia James on allegations of mortgage fraud. This decision came just ten days after a federal judge dismissed a previous case due to the unlawful appointment of the U.S. attorney in the Eastern District of Virginia. Sources reveal that federal prosecutors were unable to persuade a majority of the grand jurors to approve charges against James, who was accused of misleading a bank to secure favorable terms on a home mortgage.
The grand jury's decision to return a no true bill is a significant rebuke of the Department of Justice's efforts to prosecute James. As an adversary of former President Donald Trump, she has frequently faced calls for prosecution from him, making this outcome particularly noteworthy. A representative from the Justice Department declined to provide any comments regarding the grand jury's decision.
In her response to the grand jury's ruling, James expressed gratitude to the members involved. "As I have said from the start, the charges against me are baseless," James stated. She emphasized the need for an end to what she described as the "unchecked weaponization of our justice system."
The allegations against James stemmed from a civil fraud case she successfully brought against Trump last year. Prosecutors claimed that James had improperly categorized a home she purchased in 2020 as a second home instead of an investment property. This misclassification allegedly allowed her to save approximately $19,000 over the life of the loan through a more advantageous mortgage rate.
The legal saga took another turn following a direct call from Trump to prosecute James and other political adversaries. In October, Trump's former attorney and aide, Lindsey Halligan, managed to secure an indictment against James. However, this indictment was dismissed by U.S. District Judge Cameron Currie, who ruled that Halligan was unlawfully serving as the U.S. attorney for the Eastern District of Virginia. Consequently, all actions taken by Halligan, including the indictments against James and former FBI director James Comey, were nullified.
It remains unclear whether prosecutors will attempt to charge Comey again on allegations of making false statements to Congress in 2020. Both Comey and James have initiated separate legal challenges against their respective indictments, arguing that they were subject to vindictive prosecution at the direct orders of President Trump. These arguments could hold considerable weight with judges as they deliberate on whether to allow the cases to proceed to trial.
The refusal of the grand jury to indict Letitia James highlights the complexities of political influence in legal proceedings and raises questions about the integrity and independence of the justice system. As this situation continues to unfold, it will be essential to monitor any further developments in the cases involving both James and Comey.