• Alexandria grand jury rejects charges days after Norfolk panel issued similar refusal
• Original indictment dismissed after judge ruled prosecutor was unlawfully appointed
• Defense attorney calls continued prosecution attempts “a mockery of our system of justice”

ALEXANDRIA, VA (TDR) — A federal grand jury declined Thursday to indict New York Attorney General Letitia James on mortgage fraud charges, marking the second time in a week that Virginia grand jurors have rejected the Justice Department’s attempts to prosecute the outspoken Trump critic.

The Alexandria grand jury’s refusal comes just days after a Norfolk grand jury similarly declined to return an indictment on December 4. The back-to-back rejections represent a significant obstacle for the Trump administration’s efforts to pursue criminal charges against one of the president’s most prominent political adversaries.

Original Charges and Dismissal

James was originally indicted in October on charges of bank fraud and making false statements to a financial institution. Prosecutors alleged she misrepresented a Norfolk property she purchased in 2020 as a second home rather than an investment property, allegedly saving approximately $19,000 in mortgage costs over the life of the loan.

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A federal judge dismissed those original charges in November after ruling that Lindsey Halligan, the U.S. Attorney for the Eastern District of Virginia who presented the case, had been unlawfully appointed to her position. Judge Cameron McGowan Currie concluded that Attorney General Pam Bondi lacked the authority to install Halligan in the role, invalidating the indictments against both James and former FBI Director James Comey, who faced separate charges.

The dismissal was issued without prejudice, allowing prosecutors to seek new indictments — which they have now attempted twice without success.

Defense Declares Victory

Defense attorney Abbe Lowell characterized the repeated grand jury rejections as validation of the defense’s position.

“This unprecedented rejection makes even clearer that this case should never have seen the light of day. Career prosecutors who knew better refused to bring it, and now two different grand juries in two different cities have refused to allow these baseless charges to be brought.”

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Lowell warned that continued prosecution efforts would undermine public confidence in the justice system, adding that any further attempt to revive the charges “would be a mockery of our system of justice.”

James Maintains Innocence

James herself has maintained her innocence throughout the proceedings, calling the charges politically motivated from the outset. Following the first grand jury rejection, she issued a statement emphasizing her position.

“As I have said from the start, the charges against me are baseless. It is time for this unchecked weaponization of our justice system to stop.”

The prosecution emerged after President Donald Trump made repeated public calls for criminal charges against James and other political opponents. James had previously secured a civil fraud judgment against Trump, finding he had inflated property values on financial statements — though that fine was later overturned on appeal, with both sides continuing litigation.

Career Prosecutors Raised Concerns

ABC News previously reported that career prosecutors who initially investigated the mortgage fraud allegations found evidence appearing to undercut some claims in the indictment, including questions about the degree to which James personally profited from the property transaction. Those prosecutors reportedly believed the evidence was insufficient to bring charges and were subsequently removed from the case.

The grand jury setbacks reflect a broader pattern during the second Trump administration. Legal observers note that grand jury refusals to indict remain exceptionally rare — giving rise to the legal adage that prosecutors could convince a grand jury to “indict a ham sandwich.” The repeated rejections suggest ordinary citizens serving as grand jurors remain unconvinced by the government’s evidence.

The Justice Department has not indicated whether it will attempt a third indictment. The department did not respond to requests for comment on the latest grand jury decision.

Will DOJ pursue a third indictment attempt, or have consecutive grand jury rejections finally closed the case against James?

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