Federal grand jury rejects indictment of Letitia James after DOJ revives mortgage fraud case
WASHINGTON, DC: A federal grand jury on Thursday, December 4, declined to indict New York Attorney General Letitia James on revised mortgage fraud charges, rejecting the Department of Justice's attempt to refile the case.
This decision comes after a previous indictment was thrown out by a judge due to the improper appointment of the acting US Attorney who had originally brought charges.
Grand Jury rejects mortgage fraud charges against Attorney General James
Federal prosecutors in Norfolk, Va, presented the revised mortgage fraud charges against New York Attorney General Letitia James to a newly empaneled grand jury however, the jury rejected the indictment.
The revised charges against James were presented by federal prosecutor Roger Keller, who joined the team recently.
James had earlier been indicted on two counts of alleged bank fraud and making false statements to a financial institution in relation to a six-figure loan she took out in 2020 for a second home in Norfolk, charges she has consistently referred to as “baseless.”
Following the grand jury's decision, James stated via a press release, "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."
Even in dismissing the case, the presiding judge did so without prejudice, which leaves prosecutors a six-month window to file another indictment, if they wish to do so.
Initial indictment invalidated as a result of illegal appointment of prosecutor Halligan
The first indictment against James came from an October 9 Alexandria, Va, grand jury, but US District Judge Cameron Currie threw it out on November 24.
Judge Currie ruled that acting US Attorney Lindsey Halligan, who had secured the first indictment, was improperly appointed to her position and had "no lawful authority" to bring the charges.
US Attorney General Pam Bondi had vowed the same day as Currie's decision that the Department of Justice "would be taking all available legal action, including an immediate appeal," though an appeal has not yet been filed.
Halligan, who previously served as the personal attorney for President Trump, took the post of interim US attorney on September 22 after the removal of her predecessor, who had declined to bring charges against James and former FBI Director James Comey.
James Comey’s attorney warns against continuing case after grand jury rejection
Democratic attorney Abbe Lowell, representing James, told CNN that the jurors' decision "should be the end of this case."
Lowell further warned the prosecutors, saying, “If they continue, undeterred by a court ruling and a grand jury’s rejection of the charges, it will be a shocking assault on the rule of law and a devastating blow to the integrity of our justice system.”
The original charges were related to a criminal referral from the director of the Federal Housing Finance Agency, Bill Pulte, for allegedly falsifying information on second-home mortgages.
James bought a home in Norfolk in August 2020, with a "second home rider" requiring her to be the primary occupant and not to rent it out, though one of her grandnieces moved in shortly after, and James recorded up to $5,000 in rental income on her 2020 New York State ethics filings. If convicted on both original counts, James could face up to 60 years in prison and a $2 million fine.
