A federal grand jury declined on Thursday to reindict New York Attorney General Letitia James, rejecting the Department of Justice’s second attempt to pursue mortgage-fraud charges just 10 days after a federal judge dismissed the original case, CNN reported. A separate source told CNN the decision should not be viewed as a full vindication for James, noting that the DOJ could still bring the allegations before a third grand jury.
The case shifted dramatically late last month when U.S. District Judge Cameron McGowan Currie ruled that interim U.S. Attorney Lindsey Halligan had been unlawfully appointed. Currie dismissed the indictments against former FBI Director James Comey and James, arguing Halligan lacked lawful authority.
Currie wrote that Halligan’s appointment was “invalid,” and therefore any indictments she presented could not be enforced. The judge dismissed the cases without prejudice, leaving open the possibility for new charges.
“The Attorney General’s attempt to install Ms. Halligan as Interim U.S. Attorney for the Eastern District of Virginia was invalid,” Currie stated. “And because Ms. Halligan had no lawful authority to present the indictment, I will grant Mr. Comey’s motion and dismiss the indictment without prejudice.”
Halligan took over the Eastern District of Virginia U.S. Attorney’s Office after Erik Siebert resigned, reportedly amid pressure from President Donald Trump to bring charges. She secured an indictment against Comey within days, as the statute of limitations was nearing expiration.
A federal grand jury indicted James in October on charges of bank fraud and making false statements to a financial institution. She denied the allegations in a video statement, accusing the administration of weaponizing federal law enforcement and calling the charges meritless.
The Federal Housing Finance Agency (FHFA) referred James to the DOJ in April for allegedly falsifying mortgage documents on a Virginia property. FHFA Director William Pulte alleged James misrepresented the home as her primary residence to obtain a more favorable mortgage rate, despite being required to reside in New York as attorney general.
