Grand jury declines to re‑indict Letitia James after case tossed over unlawful appointment
An out‑of‑district federal judge dismissed New York Attorney General Letitia James’s indictment—charging bank fraud and false statements over a 2020 Norfolk mortgage—after finding that interim U.S. attorney Lindsey Halligan was unlawfully appointed; the dismissal was without prejudice and turned solely on that appointment defect, with Halligan having been the lone prosecutor before the grand jury. Prosecutors sought to refile but a Norfolk grand jury declined to re‑indict; DOJ may appeal or try again, while James (who has pleaded not guilty) called the charges baseless and has accused investigators of politicized and "outrageous" conduct.
📌 Key Facts
- U.S. District Judge Cameron Currie dismissed the federal indictment against New York Attorney General Letitia James (consolidated with the Comey matter) after finding interim U.S. Attorney Lindsey Halligan was unlawfully appointed; the dismissals were without prejudice.
- Currie’s opinion concluded Halligan’s appointment violated statutory limits on interim U.S. attorney tenures (the 120‑day rule), rejected the Justice Department’s successive‑appointment reading and declined to retroactively validate Halligan’s actions, noting only district courts may fill the vacancy after that period.
- Halligan was the sole prosecutor to appear before and sign the grand‑jury indictments — securing James’s indictment roughly two weeks after being sworn in — and the defense argued she acted as a “private person” in the grand jury room.
- The charges against James accused her of bank fraud and false statements tied to a 2020 Norfolk, Virginia, home purchase and a “second‑home” rider (reports cited an approximately $109,600 mortgage); James has pleaded not guilty and called the allegations baseless.
- The Justice Department and the White House said they would appeal Currie’s ruling and may refile under a properly appointed U.S. attorney; prosecutors returned to a Norfolk grand jury, which declined to re‑indict James, though DOJ sources said they expected to try again.
- James’s lawyers filed motions accusing federal actors of “outrageous government conduct,” alleging FHFA Director Bill Pulte and DOJ officials improperly influenced the probe (including claims Pulte “weaponized” FHFA, sent Halligan a private letter summarizing James’s properties, and that DOJ’s Pardon Attorney urged James to resign), with counsel Abbe Lowell calling further pursuit politically driven.
- The White House and figures tied to the prosecution (including former AG Pam Bondi) defended Halligan and the prosecutions, with Bondi vowing an immediate appeal and stating Halligan had been designated a “special U.S. attorney” to continue court participation despite the court’s finding.
- In the aftermath, a conservative watchdog (CASA) filed a bar complaint in New York against James over the same Norfolk mortgage allegations, and reporting noted that grand juries declining to re‑indict are historically rare.
📊 Relevant Data
Prosecutions for misrepresenting occupancy on mortgage applications are rare, according to mortgage lawyers, despite lying on a loan application being a serious crime that can lead to prison sentences.
What Is Mortgage Occupancy Fraud, and Can a Person Ever Legally Rent Out a Second Home? — The Wall Street Journal
In fiscal year 2024, among individuals sentenced for credit card and other financial instrument fraud in federal courts, 45.3% were Black, 34.7% were White, 14.0% were Hispanic, and 6.0% were Other races, while Black individuals comprise approximately 13.6% of the U.S. population.
Quick Facts on Credit Card Fraud and Other Financial Instrument Fraud FY24 — United States Sentencing Commission
Occupancy misrepresentation in mortgages is widespread, with a 2023 study finding patterns of borrowers declaring properties as second homes but using them as rentals.
What Is Occupancy Fraud? A Guide for Investors — Bay Management Group
📰 Sources (16)
Grand jury rejects new mortgage fraud indictment against New York Attorney General Letitia James
New information:
- AP/NPR report that prosecutors returned to a Virginia grand jury, which rejected DOJ’s request to bring new charges.
- DOJ prosecutors are expected to try again for an indictment, per a person familiar with the matter.
- New on‑record responses: Letitia James said the 'weaponization' should stop; attorney Abbe Lowell said continuing would be 'a shocking assault on the rule of law.'
- Additional allegation specifics: the case centers on a 2020 Norfolk home purchase and a 'second home rider' requiring one year of personal use; prosecutors allege the property was instead rented to a family of three.
- Lindsey Halligan personally presented the case to a grand jury in October after being installed as U.S. attorney, under pressure from President Trump.
Grand jury refuses to re-indict Letitia James
New information:
- A federal grand jury in Norfolk, Va., voted down re‑indicting Letitia James after last week’s dismissal without prejudice.
- James issued a statement thanking the grand jury and calling the charges baseless.
- CBS cites DOJ figures showing grand juries declining to indict is extraordinarily rare (six instances in FY2016).
- Recaps the original charges (bank fraud and false statement tied to a 2020 Norfolk mortgage) and the unlawful appointment finding for interim U.S. attorney Lindsey Halligan.
Trump admin vows to move quickly on Comey case despite setbacks: What to know
New information:
- Bondi’s vow to 'immediately appeal' applies to the ruling that also invalidated the Letitia James case.
- Confirms both dismissals were without prejudice, allowing potential reindictment pending appellate review.
Watchdog group hits Letitia James with bar complaint after federal judge tosses case
New information:
- A conservative watchdog, the Center to Advance Security in America (CASA), filed a bar complaint with New York’s Attorney Grievance Committee against AG Letitia James tied to the same Norfolk, Virginia mortgage allegations underlying the dismissed federal case.
- CASA’s complaint, authored by director of research and policy Curtis Schube, alleges 'illegal and dishonest conduct' and cites New York’s Rules of Professional Conduct regarding fraud, misrepresentation, honesty and trustworthiness.
- The article reiterates DOJ’s intent to appeal Judge Cameron Currie’s dismissal, with WH Press Secretary Karoline Leavitt stating the department believes interim U.S. attorney Lindsey Halligan was legally appointed.
- The complaint references James’ $109,600 mortgage as the focal point of the alleged misconduct.
The case against Comey failed because of Trump's prosecutor. Who is she?
New information:
- Erik Siebert resigned under pressure from President Trump to bring charges; Halligan was appointed acting U.S. attorney the following day.
- Currie’s opinion highlighted that only district courts may appoint after the 120-day interim window had elapsed under Siebert, rendering Halligan’s actions invalid.
- White House press secretary Karoline Leavitt labeled the ruling 'technical' and defended Halligan’s appointment as lawful in a Fox News interview.
- Additional biographical context on Halligan’s age (36) and prior roles (insurance attorney, Trump personal lawyer, White House aide).
U.S. plans to cut ties with Boy Scouts. And, Comey and James' criminal cases dismissed
New information:
- NPR confirms the dismissal also applied to New York AG Letitia James’s case for the same appointment defect: Halligan’s unlawful role as the sole prosecutor before the grand jury and sole signatory.
- NPR notes DOJ retains the right to appeal the ruling.
Bondi targets James Comey, Letitia James in legal battle: 'Hold... accountable for unlawful conduct'
New information:
- Bondi said DOJ will immediately appeal the dismissal in Letitia James’s case, seeking to 'hold Letitia James ... accountable for unlawful conduct.'
- She stated Halligan has been made a 'special U.S. attorney' to remain in court on the matter despite the court’s finding her interim appointment unlawful.
- Bondi reiterated DOJ’s view that the prosecutions are warranted and that Halligan is 'an excellent U.S. attorney.'
White House standing with prosecutor Lindsey Halligan after cases dismissed against Comey, James
New information:
- The White House is standing with Lindsey Halligan after the dismissal of charges against New York AG Letitia James.
- CBS frames the dismissals of both the Comey and James cases as tied to Halligan’s unlawful appointment while noting White House support.
Judge tosses James Comey, Letitia James cases, rules prosecutor was illegally appointed
New information:
- Confirms the dismissals came as 'twin rulings' the same day covering both Comey and Letitia James cases.
- White House Press Secretary Karoline Leavitt stated DOJ will 'appeal very soon' and asserted Halligan was legally appointed.
- Direct quotation from the ruling describing the legal effect of Halligan’s defective appointment on the indictments.
Judge tosses Comey, James cases after finding prosecutor unlawfully appointed
New information:
- The judge simultaneously dismissed James Comey’s case on the same unlawful-appointment grounds.
- Halligan secured James’s indictment roughly two weeks after being sworn in; the charges include bank fraud and false statements, and James has pleaded not guilty.
- Halligan was the sole prosecutor to appear before the grand jury in both matters.
- Abbe Lowell, counsel for James, said they will continue to fight any further charges and framed the prosecutions as politically driven.
- Trump publicly urged prosecutions of Comey, James and Sen. Adam Schiff days before Halligan was sworn in.
Judge dismisses James Comey, Letitia James cases over prosecutor's appointment
New information:
- Judge Cameron Currie dismissed the federal indictment of New York AG Letitia James on the same unlawful‑appointment theory.
- The dismissal is without prejudice, leaving room for potential refiling by properly appointed authorities.
- The ruling reiterates that actions taken by Lindsey Halligan, installed as interim U.S. attorney by AG Pam Bondi, were invalid.
- Decision turns on statutory limits to interim U.S. attorney tenures and the court’s rejection of DOJ’s per‑appointment reading.
Federal judge dismisses James Comey, Letitia James indictments
New information:
- Dismissal was without prejudice; charges were bank fraud against Letitia James.
- Judge Currie’s opinion explicitly rejects retroactive validation of Halligan’s actions, with detailed rationale and quotes.
- Confirms both Comey and Letitia James challenges were consolidated and heard by an out‑of‑district judge due to conflicts in Virginia.
- Notes DOJ could appeal or refile under a properly appointed U.S. attorney.
- Defense counsel Abbe Lowell argued Halligan was a “private person” in the grand jury rooms; the court agreed.
Judge dismisses cases against James Comey, Letitia James after finding the prosecutor was illegally appointed
New information:
- Judge Currie dismissed Letitia James’s case without prejudice based solely on the unlawful appointment, leaving other defense arguments unresolved.
- AP reports Halligan was the sole signer and driving force behind the indictments, a factor defense cited in seeking broader relief.
- Adds James’s on‑record reaction, calling the charges baseless and thanking supporters.
- Notes that in other districts (NJ, LA, NV) judges disqualified interim U.S. attorneys but allowed cases to proceed, contrasting with Halligan’s sole role here.
Letitia James says charges should be dropped due to "outrageous government conduct"
New information:
- James filed a 22-page motion to dismiss with prejudice alleging 'outrageous government conduct' by FHFA Director Bill Pulte, DOJ Pardon Attorney Ed Martin, and interim U.S. Attorney Lindsey Halligan.
- Filing cites internal Fannie Mae messages in which the director of mortgage fraud and VP of financial crimes said the James case was 'certainly not clear and convincing evidence' of mortgage fraud.
- James alleges Pulte 'weaponized' FHFA, unlawfully installed himself as chair of Fannie Mae and Freddie Mac while overseeing them at FHFA, and sent Halligan a private letter summarizing James’ properties used in grand jury proceedings.
- James’ lawyers say Pulte’s probe origins were 'suspect,' potentially relying on a fringe blogger, purchased county records, or unlawfully accessed Fannie Mae loan files.
- Filing alleges Ed Martin sent an August letter urging James to resign to avoid prosecution, which her attorneys argue violated DOJ rules and the Principles of Federal Prosecution.
- Context reaffirmed: James was charged in October with bank fraud over allegedly misrepresenting a Virginia property as a second home to obtain a lower interest rate; Pulte has also referred Rep. Eric Swalwell, Fed Governor Lisa Cook, and Sen. Adam Schiff for alleged mortgage fraud.
Judge to hear arguments challenging appointment of prosecutor who charged James Comey, Letitia James
New information:
- The EDVA judge will simultaneously hear arguments to dismiss Letitia James’s case on the same ground that Lindsey Halligan’s interim appointment was unlawful.
- Defense cites the 120-day limit for AG interim appointments and claims only EDVA judges could fill the vacancy after that period, while DOJ maintains successive interim appointments are allowed.
- James has pleaded not guilty to mortgage fraud; defense also alleges vindictive prosecution tied to presidential animus.