For a second time in every week, a federal grand jury in Virginia has refused to indict New York Legal professional Normal Letitia James for alleged mortgage fraud, sources stated, once more rejecting the Division of Justice’s try to refile the case after a federal choose dismissed an earlier case based mostly on the illegal appointment of the U.S. lawyer within the Jap District of Virginia.
Federal prosecutors on Thursday did not persuade a majority of grand jurors to approve prices that James misled a financial institution to acquire favorable mortgage phrases on a house mortgage, in line with sources.
The fees had been offered to a grand jury within the Jap District of Virginia’s Alexandria department after a grand jury in Norfolk, Virginia, final week rejected the charges.
A Justice Division spokesperson didn’t instantly reply to a request for remark from ABC Information.
An lawyer for James didn’t instantly remark.
Letitia James, New York’s lawyer normal, speaks exterior federal court docket in Norfolk, Virginia, Oct. 24, 2025.
Eric Lee/Bloomberg by way of Getty Pictures
Prosecutors have alleged that James, who efficiently introduced a civil fraud case towards now-President Donald Trump final yr, falsely listed a house she bought in 2020 as a second residence as a substitute of an funding property to be able to save doubtlessly $19,000 over the lifetime of the mortgage with a extra favorable mortgage price.
As ABC Information beforehand reported, prosecutors who investigated James for doable mortgage fraud discovered proof that appeared to undercut a number of the allegations within the indictment of James secured in September — together with the diploma to which James allegedly personally profited from her buy of the property.
James has denied all wrongdoing.
It is a creating story. Please test again for updates.
