New York Attorney General Letitia James Dodges Indictment for 2nd Time in Mortgage Fraud Case

New York Attorney General Letitia James Dodges Indictment for 2nd Time in Mortgage Fraud Case

New York Attorney General Letitia James dodged a second indictment this week after a federal grand jury in Alexandria, Virginia refused to bring charges in a mortgage fraud case, sources tell ABC News. This comes just days after another grand jury in Norfolk turned down the same case — marking two straight rebuffs for prosecutors.

Federal prosecutors had asked jurors to approve charges accusing James of misleading a bank to get better loan terms on a home mortgage. But on Thursday, jurors again declined to hand down an indictment, leaving the Justice Department without a case for now.

This latest refusal follows an earlier twist: a federal judge dismissed the original indictment in late November, ruling that the prosecutor who brought that case was improperly appointed. That dismissal sent prosecutors back to the drawing board — with two grand juries now declining to move forward.

James, who has denied any wrongdoing, was first charged in October with alleged bank fraud and making false statements connected to the mortgage. She pleaded not guilty at the time.

While the Justice Department has not commented, this double rejection is noteworthy — grand juries usually approve indictments when prosecutors present evidence. Sources say both decisions signal challenges for the government’s effort to resurrect the case.