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Grand jury rejects new mortgage fraud indictment against New York Attorney General Letitia James

A federal grand jury in Virginia declined to re-indict Letitia James on mortgage fraud charges amid legal challenges to the prosecutor's appointment, a rare grand jury refusal.

  • On Thursday, the Justice Department failed to secure an indictment against New York Attorney General Letitia James after a Norfolk, Virginia grand jury presentation less than two weeks after the original case dismissal.
  • A judge found Acting U.S. Attorney Lindsey Halligan's appointment unlawful, which voided the earlier case on Nov. 24, and the Justice Department opted to seek a new indictment after initially vowing to appeal.
  • Previously, James had been indicted on bank fraud and false-statement counts, and she denies any wrongdoing amid renewed grand-jury activity.
  • The failed presentation does not prevent prosecutors from trying again, and the Justice Department declined to comment on grand jury matters as sources urged caution.
  • Political pressure from the White House has factored into staffing and prosecutorial choices, as President Donald Trump named Halligan after ousting Erik Siebert and urged officials to pursue prosecutions.
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The U.S. Department of Justice failed for the second time with the attempt to sue the New York Attorney General. Donald Trump had called for a trial.

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Political Wire broke the news in New York, United States on Thursday, December 4, 2025.
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