Virginia – In a significant development, a federal grand jury in Virginia has once again declined to indict New York Attorney General Letitia James on alleged mortgage fraud. The latest rejection, following a similar outcome last week in Norfolk, is the second time in recent days that grand jurors have declined to approve charges against James.
The grand jury in the Eastern District of Virginia, based in Alexandria, was presented with allegations that James misled a bank in 2020 to secure favorable loan terms on his home mortgage by falsely declaring the property as a second home rather than an investment property. Prosecutors argued that this misrepresentation allowed James to obtain a more favorable mortgage rate, potentially saving him $19,000 over the life of the loan.
However, the grand jury dismissed the charges, repeating a decision taken by the grand jury in Norfolk a week earlier. The rejection of the charges is seen as a significant blow to federal prosecutors who are attempting to revive the case after a previous grand jury indictment was dismissed by a federal judge. The judge had ruled that the previous indictment was based on the illegal appointment of U.S. attorney to the Eastern District of Virginia.
Legal response and public reactions
James’s attorney, Abbey Lovell, reacted strongly to the verdict, calling the rejection “unprecedented” and insisting that charges should never have been pursued. In a statement, Lowell emphasized that two separate grand juries in different cities had dismissed the charges, calling the case “baseless” and accusing the Justice Department of wasting resources on an investigation that had no merit.
“This makes it even more clear that this case should never have come to light,” Lovell said. “Career prosecutors who should have known better refused to bring this, and now two different grand juries in two different cities have refused to allow these baseless charges to be brought.”
Details of allegations and investigation
The Justice Department had alleged that James knowingly misrepresented the nature of the property he purchased in 2020 to save money on his mortgage terms. Prosecutors claimed that by listing the home as a second home rather than an investment property, James was able to secure a more favorable mortgage rate, thereby reducing his costs.
However, ABC News previously reported that an investigation into James’ mortgage application turned up evidence that appears to undermine some of the allegations. Evidence reportedly indicates that the personal financial benefit James received from the purchase may have been less than originally claimed.
James has consistently denied all allegations of wrongdoing, saying that his actions were lawful and appropriate. He has defended his conduct, claiming that he acted in good faith when purchasing the property.
Implications for future legal actions
Despite repeated rejections by the grand jury, federal prosecutors may still attempt to pursue charges in the future, although such a move now seems unlikely. The decision by two grand juries to dismiss charges raises questions about the strength of the case against James and may indicate that charges lack sufficient evidence to proceed.
James, who rose to national prominence for her successful civil fraud case against current President Donald Trump, has emerged unscathed from this latest legal challenge, which has only served to strengthen her position. She remains a prominent figure in New York state politics and legal circles, having played a leading role in several high-profile cases.
At present, the Justice Department has not made any official comment following the grand jury’s latest decision.
This story may be updated with more information as it becomes available.
