Grand Jury Declines Indictment for New York Attorney General Letitia James
The Justice Department did not secure a new indictment against New York Attorney General Letitia James on Thursday. This development follows a federal judge's dismissal of a previous mortgage fraud prosecution against James and former FBI Director James Comey. The dismissal was based on the finding that the U.S. attorney who presented those cases was unlawfully appointed.
Background on Dismissal and Allegations
Prosecutors had returned to a grand jury in Virginia after the initial ruling halted proceedings against James and Comey. However, the grand jurors rejected the request to bring new charges.
This marks another instance where the Justice Department has faced obstacles in prosecuting cases involving individuals who have been public critics of former President Donald Trump.
Prosecutors are anticipated to attempt to secure an indictment again, according to sources familiar with the matter.
James was initially charged with bank fraud and making false statements to a financial institution concerning a 2020 home purchase in Norfolk, Virginia. Lindsey Halligan, a former White House aide, presented the initial case to the grand jury in October. Her appointment as U.S. attorney for the Eastern District of Virginia reportedly occurred amid pressure from then-President Trump to pursue charges against Comey and James.
The allegations centered on James signing a standard document, a "second home rider," for her Norfolk property. This rider stipulated the property would be primarily for her "personal use and enjoyment for at least one year." Prosecutors alleged that James rented out the home to a family, potentially enabling her to obtain favorable loan terms typically unavailable for investment properties.
Official Responses and Legal Arguments
James has consistently denied any wrongdoing and previously stated that the administration utilized the justice system for political retribution. In a statement on Thursday, James reiterated, "It is time for this unchecked weaponization of our justice system to stop."
Her attorney, Abbe Lowell, stated, "This should be the end of this case." He added that continued prosecution, despite a court ruling and grand jury rejection, would represent "a shocking assault on the rule of law and a devastating blow to the integrity of our justice system."
Appointment Controversy and Judicial Review
Beyond the mortgage fraud allegations, James' lawyers have argued that the prosecution was vindictive, aimed at punishing a critic of former President Trump who had investigated and sued him. They also cited "outrageous government conduct" leading up to her indictment as grounds for dismissal. The judge had not ruled on these specific arguments before dismissing the case over Halligan's appointment.
U.S. District Judge Cameron McGowan Currie specifically criticized the method used by the Trump administration to appoint Halligan to lead the U.S. Attorney's office. Halligan replaced Erik Siebert, an experienced prosecutor and interim U.S. attorney, who resigned in September, reportedly due to pressure from the Trump administration to file charges against Comey and James.
The night after Siebert's resignation, former President Trump announced his intent to nominate Halligan as interim U.S. attorney. He publicly urged Attorney General Pam Bondi to act against his "political opponents," stating on social media, "We can't delay any longer, it's killing our reputation and credibility" and "JUSTICE MUST BE SERVED, NOW!!!"
Comey was indicted three days after Halligan was sworn in, with James following two weeks later. The Justice Department had defended Halligan's appointment, noting that Bondi had also given Halligan a separate "Special Attorney" designation. However, Judge Currie ruled that this retroactive designation could not validate the cases.