Second Grand Jury Rejects Indictment of NY Attorney General Letitia James

2025-12-12 politics

Alexandria, Thursday, 11 December 2025.
In a significant legal setback for the Justice Department, a Virginia grand jury declined to indict Letitia James for mortgage fraud—the second refusal by federal jurors in just one week.

Unprecedented Grand Jury Rejections

On December 11, 2025, federal prosecutors faced a distinct rejection when a grand jury in Alexandria, Virginia, declined to indict New York Attorney General Letitia James [2][3][6]. This marks the second time in roughly one week that a grand jury has refused to return charges against James, following a similar decision by a separate panel in Norfolk, Virginia, earlier this month [3][4][5]. The Department of Justice (DOJ), currently under the administration of President Donald Trump, had sought to charge James with mortgage fraud, but the repeated dismissals by citizens impaneled to review the evidence suggest significant weaknesses in the government’s case [1][6]. Legal experts view this as a humiliation for the DOJ, with James’s attorney, Abbe Lowell, characterizing the pursuit as a “stain on this Department’s reputation” and warning that further attempts to revive the charges would make a “mockery of our system of justice” [1][3][5].

Anatomy of the Financial Allegations

The charges sought by federal prosecutors hinge on specific details regarding a real estate transaction from 2020. The government alleged that James made false statements on a mortgage application for a home in Norfolk, which she purchased for her great-niece [1][3]. Specifically, prosecutors accused James of listing the property as a “second home” rather than an “investment property” [3][4]. The distinction is financially relevant; prosecutors claimed that by categorizing the residence as a second home, James potentially saved approximately $19,000 over the life of the loan [3]. However, the refusal of two grand juries to indict is statistically anomalous. To illustrate the rarity of such an outcome, federal data from 2016 indicates that out of over 150,000 investigations, grand juries declined to file charges in only six instances [1]. This represents a rejection rate of merely 0.004 percent, underscoring the extraordinary nature of the current grand jury decisions.

A Timeline of Political Pressure

The aggressive pursuit of James aligns with a broader pattern of political maneuvers initiated early in President Trump’s second term. On September 20, 2025, President Trump publicly called for charges against James [6]. Following this demand, and amid criticism from the President regarding inaction, Attorney General Pam Bondi facilitated personnel changes within the DOJ [6][7]. Specifically, Lindsey Halligan, a former personal lawyer for Trump, was installed as an interim U.S. attorney in Virginia days after the resignation of Erik Siebert, who reportedly feared removal for refusing to charge James [4][6]. This restructuring occurred alongside the appointment of Ed Martin to lead a “Weaponization Working Group” at the DOJ, a body tasked with scrutinizing officials—including James, James Comey, and Adam Schiff—who had previously investigated the President [7].

Judicial Roadblocks and Legal Context

The Justice Department’s difficulties extend beyond the grand jury room. An initial indictment against James, secured in October 2025, was dismissed in November by U.S. District Judge Cameron McGowan Currie [2][6]. Judge Currie ruled that Lindsey Halligan’s appointment as prosecutor violated federal law, leading to the dismissal of charges against both James and former FBI Director James Comey [2][6]. These legal battles are set against a backdrop of long-standing animosity; in 2022, James brought a civil fraud case against Trump and his organization [1][4]. While an appeals court eventually threw out a $500 million penalty against Trump, calling it excessive, the court upheld the finding that Trump was liable for fraud regarding the inflation of asset values [1][6]. Despite these setbacks, reports suggest the Justice Department may consider seeking yet another indictment in Richmond, Virginia, keeping the legal conflict in a state of prolonged uncertainty [4][5].

Sources

Justice Department Rule of Law