Grand jury rejects new mortgage fraud indictment against New York Attorney General Letitia James

By ALANNA DURKIN RICHER and OLIVIA DIAZ, Associated Press

NORFOLK, Va. (AP) — The Justice Department failed Thursday to secure a new indictment against New York Attorney General Letitia James after a judge dismissed the previous mortgage fraud prosecution encouraged by President Donald Trump, according to people familiar with the matter.

Prosecutors went back to a grand jury in Virginia after a judge’s ruling halting the prosecution of James and another longtime Trump foe, former FBI Director James Comey, on the grounds that the U.S. attorney who presented the cases was illegally appointed. But grand jurors rejected prosecutors’ request to bring charges.

It’s the latest setback for the Justice Department in its bid to prosecute the frequent political target of the Republican president.

Prosecutors are expected to try again for an indictment, according to one person familiar with the matter who spoke on the condition of anonymity because they were not authorized to publicly discuss the case.

James was initially charged with bank fraud and making false statements to a financial institution in connection with a home purchase in Norfolk, Virginia, in 2020. Lindsey Halligan, a former White House aide and Trump lawyer, persona...