For 2nd time, grand jury refuses to indict New York AG Letitia James: Sources

For a second time in recent days, a federal grand jury in Virginia has refused to indict New York Attorney General Letitia James for alleged mortgage fraud, sources said, again rejecting the Department of Justice's attempt to refile the case after a federal judge dismissed an earlier case based on the unlawful appointment of the U.S.attorney in the Eastern District of Virginia. Federal prosecutors on Thursday failed to convince a majority of grand jurors to approve charges that James misled a bank to obtain favorable loan terms on a home mortgage, according to sources.Grand jury rejects DOJ's attempt to revive fraud case against New York AG Letitia James: SourcesThe charges were presented to a grand jury in the Eastern District of Virginia's Alexandria branch after a grand jury in Norfolk, Virginia, last week rejected the charges. A Justice Department spokesperson did not immediately respond to a request for comment from ABC News.An attorney for James did not immediately comment.Letitia James, New York's attorney general, speaks outside federal court in Norfolk, Virginia, Oct.
24, 2025.Eric Lee/Bloomberg via Getty ImagesProsecutors have alleged that James, who successfully brought a civil fraud case against now-President Donald Trump last year, falsely listed a home she purchased in 2020 as a second home instead of an investment property in order to save potentially $19,000 over the life of the loan with a more favorable mortgage rate. Popular ReadsTrump backtracks on releasing boat strike video, distances himself from controversyDec 9, 5:03 PMCharges upgraded to murder in hospital stabbing of San Francisco social workerDec 9, 9:23 PMTrump admin live updates: Trump pardons former entertainment exec indicted by own DOJDec 4, 6:23 AMAs ABC News previously reported, prosecutors who investigated James for possible mortgage fraud found evidence that appeared to undercut some of the allegations in the indictment of James secured in September -- including the degr...