New York Attorney General, Letitia James, speaks after pleading not guilty outside the United States District Court, on Oct. 24, 2025, in Norfolk, Va.
John Clark/AP
hide caption
toggle caption
John Clark/AP
The Justice Department failed Thursday to secure a new indictment against New York Attorney General Letitia James after a judge dismissed the previous mortgage fraud prosecution encouraged by President Donald Trump, according to sources.
Prosecutors went back to a grand jury in Virginia after a judge’s ruling halted the prosecution of James and Comey, but grand jurors rejected prosecutors’ request to bring charges.
It’s the latest setback for the Justice Department in its attempts to prosecute a frequent target of the former president.
Prosecutors are expected to try again for an indictment, according to an anonymous source.
James was initially charged with bank fraud and making false statements in connection with a home purchase in 2020. The case was presented to the grand jury by a former White House aide.
James has denied wrongdoing and accused the administration of seeking revenge against political opponents.
Her attorney stated that continuing the case would be a blow to the justice system.
The allegations relate to James’ purchase of a house in Norfolk, which she rented out instead of using it as a second residence.
Grand jurors have been pushing back against prosecutors in recent cases, posing challenges for the Justice Department.
Even if charges are brought against James again, securing a conviction could be difficult.
James’ lawyers argue the case is a vindictive prosecution aimed at punishing a critic of the former president.
The defense also claims “outrageous government conduct” in the case.
The judge dismissed the case over the appointment of the U.S. attorney involved.
___
Reported by Richer from Washington.
