Second Virginia grand jury declines to re‑indict Letitia James after judge voided prior case
Two Virginia federal grand juries — first in Norfolk and then in Alexandria — declined this week to re‑indict New York Attorney General Letitia James on bank‑fraud and false‑statement charges tied to a 2020 Norfolk mortgage after Judge Cameron Currie last week voided the original indictments on the ground that interim U.S. attorney Lindsey Halligan was unlawfully appointed and had been the sole prosecutor before the grand jury. DOJ officials, backed by Pam Bondi and the White House, say they will appeal and may seek new charges, while James and her lawyer Abbe Lowell called the dual refusals unprecedented, politically motivated and urged the probe to end.
📌 Key Facts
- Federal Judge Cameron Currie dismissed the federal indictment against New York Attorney General Letitia James without prejudice after finding interim U.S. Attorney Lindsey Halligan was unlawfully appointed.
- Currie concluded Halligan’s appointment violated statutory limits on 120‑day interim U.S. attorney tenures (only district courts may appoint after that window), and Halligan was the sole prosecutor to present to and sign the original indictments, rendering those actions invalid.
- The original charges alleged bank/mortgage fraud and false statements tied to a 2020 Norfolk, Virginia, home purchase and a “second home” mortgage rider; James has pleaded not guilty and called the charges baseless and politically motivated.
- Following Currie’s ruling, DOJ prosecutors sought new indictments in Virginia but a Norfolk grand jury declined to re‑indict and, about a week later, an Alexandria grand jury also refused — two rare grand‑jury rejections in short order.
- The Justice Department, former Florida AG Pam Bondi (who installed Halligan), and the White House defended Halligan’s appointment, announced plans to appeal Currie’s ruling, and signaled they may refile under a properly appointed U.S. attorney; Bondi said Halligan was made a “special U.S. attorney” to remain involved.
- James’s defense filed a 22‑page motion alleging “outrageous government conduct,” accusing FHFA Director Bill Pulte and DOJ Pardon Attorney Ed Martin of weaponizing investigations, improperly sharing Fannie Mae materials with Halligan, and urging James to resign; prosecutors say they intend to try again for an indictment.
- A conservative watchdog group (Center to Advance Security in America) filed a separate bar complaint against Letitia James citing the same Norfolk mortgage, while James’s counsel, Abbe Lowell, called the dual grand‑jury refusals unprecedented and a stain on DOJ.
📊 Relevant Data
In fiscal year 2021, 27.6% of mortgage fraud offenders were Black, 43.1% were White, 20.7% were Hispanic, and 8.6% were Other races, while Black individuals comprise approximately 13.6% of the U.S. population.
Quick Facts on Mortgage Fraud Offenses — United States Sentencing Commission
After adjusting for borrower income and other observable factors, Black applicants were found to be 2.1 times more likely to be denied mortgages compared to White applicants in 2025 data.
Racial Gaps In Mortgage Denials Persist Despite Industry Progress — National Mortgage Professional
The number of mortgage fraud offenders has decreased by 69.9% since fiscal year 2017.
Mortgage Fraud — United States Sentencing Commission
📰 Sources (18)
Another grand jury refuses to indict Letitia James
New information:
- A federal grand jury in Alexandria, Virginia refused to indict Letitia James, marking a second grand‑jury rejection within about a week.
- Prosecutors brought the case to Alexandria after a Norfolk, Virginia grand jury declined to indict last week.
- Abbe Lowell, James’s attorney, issued a statement calling the dual rejections 'unprecedented' and a 'stain' on DOJ, urging no further attempts.
- CBS notes the rarity of grand juries declining to indict, citing DOJ data (e.g., only six failures to indict out of 150,000+ arrests in FY2016) for context.
Grand jury refuses to charge Letitia James as DOJ keeps pushing for indictment
New information:
- Confirms the Alexandria, Virginia grand jury declined to indict Letitia James on Thursday, marking the second refusal in a week (after Norfolk).
- James’ attorney Abbe Lowell issued a new statement calling the grand jury refusals 'unprecedented' and a 'stain' on DOJ, urging no further attempts to revive the case.
- Adds DOJ’s current posture: leadership 'stood behind' Lindsey Halligan, described her as a 'U.S. attorney' in a recent statement, argued the executive branch has final say on top prosecutors, and characterized the appointment defects as minor 'paperwork' issues.
- Notes Halligan was the lone prosecutor to sign the original indictments of James and James Comey before a judge voided them due to her unlawful appointment.
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.