A federal grand jury declined Thursday to indict New York Attorney General Letitia James after the Justice Department presented an alleged mortgage-fraud-related case to the panel for a second time.
Another source familiar with the matter cautioned against celebrating too soon, noting the Justice Department could attempt to seek an indictment a third time.
James welcomed the decision and again denied wrongdoing.
“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,” James said in a statement Thursday.
“I am grateful to the members of the grand jury and humbled by the support I have received from across the country. Now, I will continue to do my job standing up for the rule of law and the people of New York.”
The decision comes amid intensifying national debate over whether federal law enforcement is being used for political ends, a concern frequently raised by Republican voters and officials in recent years. James, a prominent Democratic officeholder and a frequent political target of former President Donald Trump, had faced allegations that prosecutors said involved false statements to a financial institution and bank fraud. She previously pleaded not guilty to one count of making false statements to a financial institution and one count of bank fraud.
Late last month, a federal judge threw out the initial charges, ruling that the prosecutor leading the cases had not been properly appointed.
In that decision, Judge Cameron McGowan Currie said Lindsey Halligan, described as Trump’s handpicked prosecutor, was unlawfully appointed as an interim U.S. attorney and that the cases against James and another Trump political opponent, former FBI Director James Comey, had to be dismissed.
“All actions flowing from Ms. Halligan’s defective appointment” including the indictments against Comey and James “were unlawful exercises of executive power and are hereby set aside,” Currie ruled.
The judge dismissed the cases “without prejudice,” leaving open the possibility that prosecutors could bring the same allegations again under a properly appointed official. That legal posture created a pathway for the Justice Department’s rapid return to the grand jury, underscoring the government’s determination to keep the matter alive even after the initial dismissal.
At the same time, James’ legal team and allies have continued to argue that the prosecution itself is politically motivated. Before the judge tossed the case, James raised claims that she was being singled out and targeted for selective and vindictive prosecution—arguments that could resurface if prosecutors attempt to refile.
James and Comey have pointed to public statements by Trump calling for investigations and prosecutions of political adversaries, and James has accused the government of “transforming the Department of Justice into the President’s personal agents of revenge.”
Their attorneys cited one of Trump’s Truth Social posts, directed at Attorney General Pam Bondi in September.
“Pam: I have reviewed over 30 statements and posts saying that, essentially, ‘same old story as last time, all talk, no action. Nothing is being done. What about Comey, Adam ‘Shifty’ Schiff, Leticia??? They’re all guilty as hell, but nothing is going to be done,’” Trump wrote, referring to Comey, James, and Sen. Adam Schiff of California.
