For 2nd time, grand jury refuses to indict New York AG Letitia James: Sources

A federal grand jury in Virginia has once again declined to indict New York Attorney General Letitia James for alleged mortgage fraud. This decision comes after the Department of Justice’s attempt to refile the case was rejected by the grand jury, following the dismissal of an earlier case due to the unlawful appointment of the U.S. attorney in the Eastern District of Virginia.

Federal prosecutors were unsuccessful in persuading a majority of the grand jurors to approve charges against James, accusing her of misleading a bank to secure favorable loan terms on a home mortgage. The charges were presented to a grand jury in Alexandria after a previous grand jury in Norfolk also rejected them.

Neither the Justice Department nor James’ attorney immediately responded to requests for comment on the matter.

It is alleged that James misrepresented a home she purchased in 2020 as a second home rather than an investment property in order to benefit from a more favorable mortgage rate, potentially saving $19,000 over the life of the loan. This accusation comes after James successfully brought a civil fraud case against then-President Donald Trump last year.

However, prosecutors investigating James for mortgage fraud found evidence that contradicted some of the allegations in the indictment secured in September, including the extent to which she personally profited from the property purchase. James has maintained her innocence and denied any wrongdoing.

This is an ongoing story, and updates will be provided as more information becomes available.