For a second time in current days, a federal grand jury in Virginia has refused to indict New York Legal professional Common Letitia James for alleged mortgage fraud, sources stated.
The grand jury rejected the Division of Justice’s try to refile the case after a federal choose dismissed an earlier case primarily based on the illegal appointment of the U.S. legal professional within the Japanese District of Virginia.
Federal prosecutors on Thursday didn’t persuade a majority of grand jurors to approve costs that James misled a financial institution to acquire favorable mortgage phrases on a house mortgage, in line with sources.
The fees had been introduced to a grand jury within the Japanese District of Virginia’s Alexandria department after a grand jury in Norfolk, Virginia, final week rejected the charges.
A Justice Division spokesperson didn’t instantly reply to a request for remark from ABC Information.
“This unprecedented rejection makes even clearer that this case ought to by no means have seen the sunshine of day,” James’ legal professional, Abbe Lowell, stated in a press release. “Profession prosecutors who knew higher refused to carry it, and now two completely different grand juries in two completely different cities have refused to permit these baseless costs to be introduced. Any additional try to revive these discredited costs can be a mockery of our system of justice.”
Prosecutors have alleged that James, who efficiently introduced a civil fraud case towards now-President Donald Trump final yr, falsely listed a house she bought in 2020 as a second house as a substitute of an funding property with the intention to save probably $19,000 over the lifetime of the mortgage with a extra favorable mortgage fee.
Letitia James, New York’s legal professional basic, speaks exterior federal courtroom in Norfolk, Virginia, Oct. 24, 2025.
Eric Lee/Bloomberg by way of Getty Photos
As ABC Information beforehand reported, prosecutors who investigated James for attainable mortgage fraud discovered proof that appeared to undercut a number of the allegations within the indictment of James secured in September — together with the diploma to which James allegedly personally profited from her buy of the property.
James has denied all wrongdoing.
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