Grand jury declines to indict Letitia James again on mortgage fraud allegations

The decision comes after a federal judge dismissed the initial case against James last month because the federal prosecutor who brought the case was not lawfully appointed.

By Misty Severi

Published: December 4, 2025 6:44pm

A grand jury in Virginia on Thursday declined to indict New York Attorney General Letitia James on a new indictment related to allegations that she committed mortgage fraud.

The decision comes after a federal judge dismissed the initial case against James last month, ruling that the federal prosecutor who brought the case was not lawfully appointed. The prosecutor, Lindsey Halligan, was appointed by Attorney General Pam Bondi.

The grand jury's decision was first reported by CNN and NBC News, citing sources familiar with the matter. The second attempt to indict James was presented to the grand jury in Norfolk, Virginia, by different prosecutors.

James was originally indicted for one count of bank fraud and one count of making a false statement to a financial institution. The charges were tied to allegations that James purchased a house in Norfolk with a loan that prohibited her from using the home as a rental investment property, which prosecutors allege saved her “approximately $18,933 over the life of the loan.”

She pleaded not guilty to the charges.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.