In a significant development, a federal grand jury in Virginia has once again refused to indict New York Attorney General Letitia James for alleged mortgage fraud. Sources indicate that this decision comes in the wake of the Department of Justice's attempts to refile the case following a prior dismissal by a federal judge. The dismissal was based on concerns regarding the unlawful appointment of the U.S. attorney in the Eastern District of Virginia.
On Thursday, federal prosecutors were unable to persuade a majority of grand jurors in the Alexandria branch of the Eastern District of Virginia to approve charges against James. The allegations claimed that she misled a bank to secure favorable loan terms for a home mortgage. Notably, this presentation followed a previous rejection of the same charges by a grand jury in Norfolk, Virginia, just days earlier.
The controversy surrounding Attorney General James intensified when prosecutors alleged that she had falsely classified a home purchased in 2020. According to these allegations, James listed the property as a second home rather than an investment property. This misclassification could have enabled her to save approximately $19,000 over the duration of the loan due to a more favorable mortgage rate.
As reported by ABC News, the investigation into James for potential mortgage fraud revealed evidence that appeared to undermine several of the claims made in the indictment secured against her last September. Specifically, this evidence questioned the extent to which James allegedly profited from the purchase of the property.
A spokesperson for the Justice Department did not provide immediate comments regarding this ongoing situation when contacted by ABC News. Similarly, an attorney representing James has yet to issue a statement addressing these developments.
Letitia James has consistently denied any allegations of wrongdoing, asserting her integrity throughout the legal scrutiny she faces. As this situation continues to evolve, updates will be provided as more information becomes available.
This is a developing story, and we encourage readers to check back regularly for the latest updates on this unfolding legal matter.