The U.S. Department of Justice failed to secure a new indictment against New York Attorney General Letitia James on Thursday after a judge dismissed the previous mortgage fraud prosecution encouraged by President Donald Trump, people familiar with the matter told the Associated Press.
Prosecutors went back to a grand jury in Virginia after a judge’s ruling halting the prosecution of James and former FBI Director James Comey, on the grounds that the U.S. attorney who presented the cases was illegally appointed. But grand jurors rejected prosecutors’ request to bring charges, the AP reported.
James was initially charged with bank fraud and making false statements to a financial institution in connection with a home purchase in Norfolk, Virginia, in 2020. Lindsey Halligan, a former White House aide and Trump lawyer, personally presented the case to the grand jury in October after being installed as U.S. attorney for the Eastern District of Virginia amid pressure from Trump to charge Comey and James.
“As I have said from the start, the charges against me are baseless. It is time for this unchecked weaponization of our justice system to stop," James said in a statement. "I am grateful to the members of the grand jury and humbled by the support I have received from across the country. Now, I will continue to do my job standing up for the rule of law and the people of New York.”
Prosecutors are expected to try again for an indictment, according to one person familiar with the matter who spoke on the condition of anonymity to the AP because they were not authorized to publicly discuss the case.

