Grand jury rejects DOJ’s attempt to revive fraud case against New York AG Letitia James

Norfolk, Virginia / New York, December 4, 2025 (Wikinews) — A federal grand jury in Norfolk, Virginia refused on Thursday to re-indict New York Attorney General Letitia James, rejecting a renewed prosecution attempt by the United States Department of Justice (DOJ) in a high-profile mortgage-fraud case. :contentReference[oaicite:2]{index=2}

In October 2025, prosecutors initially indicted James on charges including bank fraud and false statements related to a property she purchased in 2020 — alleging that she misrepresented the home as a second residence rather than an investment property to secure favorable mortgage terms. :contentReference[oaicite:3]{index=3}
Less than two weeks later, a federal judge dismissed the original indictment after ruling that the lead prosecutor, Lindsey Halligan, had been unlawfully appointed — a ruling which rendered the indictment void. :contentReference[oaicite:5]{index=5}

Following the dismissal, DOJ prosecutors attempted to revive the case by presenting revised charges to a new grand jury in Norfolk. :contentReference[oaicite:6]{index=6}

Grand jury’s decision

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On December 4, 2025, the grand jury returned a “no-true-bill,” declining to indict James on the proposed charges. Prosecutors failed to convince a majority of jurors that there was probable cause. :contentReference[oaicite:7]{index=7}
Observers described the refusal as a notable rebuke to DOJ, given how rare it is for grand juries to reject cases once presented by prosecutors. :contentReference[oaicite:8]{index=8}

James issued a statement celebrating the decision, calling the case “baseless” and describing the grand jury’s refusal as a vindication. :contentReference[oaicite:9]{index=9}
Supporters of James and critics of DOJ’s approach characterized the outcome as a check against politically motivated prosecutions. :contentReference[oaicite:10]{index=10}
Legal analysts noted that the decision may dissuade similar attempts at re-indictments under controversial prosecutorial appointments. :contentReference[oaicite:11]{index=11}

For now, James remains free of criminal charges related to the Norfolk property purchase. The DOJ theoretically retains the option to attempt another indictment, but observers say additional legal and political obstacles make another attempt uncertain. :contentReference[oaicite:12]{index=12}

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