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DOJ Fails Again as Second Grand Jury Rejects Case Against Letitia James

For the second time in recent days, a federal grand jury in Virginia has declined to indict New York Attorney General Letitia James on allegations of mortgage fraud.

The decision came after the Department of Justice attempted to refile the case following the dismissal of an earlier prosecution by a federal judge, who ruled that the U.S. attorney overseeing the case in the Eastern District of Virginia had been unlawfully appointed.

On Thursday, federal prosecutors failed to persuade a majority of grand jurors in Alexandria, Virginia, to approve charges alleging that James misled a bank to secure favorable mortgage terms. The move followed a similar rejection last week by a separate grand jury in Norfolk, Virginia, marking the second time the allegations have been rejected.

A spokesperson for the Justice Department did not immediately respond to a request for comment.

James’ attorney, Abbe Lowell, sharply criticized the repeated attempts to bring charges.

“This unprecedented rejection makes even clearer that this case should never have seen the light of day,” Lowell said in a statement. “Career prosecutors who knew better refused to bring it, and now two different grand juries in two different cities have rejected these baseless allegations. Any further effort to revive these discredited charges would be a mockery of our system of justice.”

Prosecutors had alleged that James falsely described a home she purchased in 2020 as a second residence rather than an investment property, a misrepresentation they claimed could have saved her as much as $19,000 over the life of the loan through a lower interest rate. James previously led a successful civil fraud case against then–former President Donald Trump.

 

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