The United States Justice Department was unable to secure a new indictment against New York Attorney General Letitia James on Thursday, according to a source familiar with the matter who spoke with NBC News. The development comes less than two weeks after the original criminal case against her was dismissed.
James, a frequent political target of President Donald Trump, who successfully pursued a civil fraud case against him, had previously been indicted on charges of bank fraud and making false statements to a financial institution. She has consistently denied any wrongdoing.
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In a statement issued Thursday following reports that the grand jury declined to reindict her, James said the accusations were unfounded.
“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,” she said. “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 first indictment against James was thrown out on November 24 after a judge ruled that Lindsey Halligan, who had presented the case to the grand jury, was unlawfully appointed. Halligan, who was serving as acting U.S. attorney for the Eastern District of Virginia, is a former personal attorney to Trump with no prior prosecutorial background. She had presented the case to the grand jury without assistance.
U.S. District Judge Cameron Currie vacated Halligan’s appointment and declared the case void. Although the Justice Department initially signaled its intent to appeal the ruling, it ultimately opted to pursue a new indictment with an untainted prosecutorial team.
The new presentation was prepared and delivered by different prosecutors in Norfolk, Virginia. However, the grand jury again declined to indict James. One source cautioned that the decision does not bar prosecutors from attempting another presentation in the future, adding that it would be premature to assume the matter is closed.
The Justice Department declined to comment, citing grand jury confidentiality.
Prosecutors are also weighing whether to revive a case against former FBI Director James Comey, who was indicted in October on charges of making a false statement to Congress and obstructing a congressional investigation. Judge Currie dismissed his case on the same day she dismissed the charges against James.
Trump appointed Halligan as U.S. attorney for the Eastern District of Virginia on September 20, one day after removing his previous nominee, Erik Siebert, who had resisted efforts to prosecute Comey and James. Halligan’s appointment came shortly after Trump urged Attorney General Pam Bondi in a social media post to pursue charges against James, Comey, and Democratic Representative Adam Schiff of California.
In the post, Trump referenced public frustration that political adversaries were not being prosecuted and pressed Bondi to act, writing that delays were damaging the administration’s credibility. He also praised Halligan and voiced confidence in her willingness to pursue the cases.
