Federal prosecutors have failed for a third time to secure a criminal indictment against New York Attorney General Letitia James, after a grand jury in Alexandria, Virginia, rejected all proposed charges last week.
According to court records, prosecutors attempted to add a third felony count—making a false statement to a financial institution—to a previously rejected indictment. The earlier charges included one count of bank fraud and one count of making a false statement to a financial institution. Grand jurors declined to indict on all three counts.
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Each charge carried a potential sentence of up to 30 years in prison and fines of up to US$1 million, though sentencing under federal guidelines would likely have resulted in significantly less time for a defendant with no prior criminal record.
Prosecutors also asked a magistrate judge to keep records of the failed indictment sealed, but U.S. Magistrate Judge William Porter denied the request. Porter noted that the grand jury’s decision was presented in open court and had already been reported publicly, stating that transparency outweighed arguments for secrecy.
“The Court will not speculate why the grand jury disclosed the no bill in open court,” Porter wrote, adding that the Justice Department waited too long to request sealing of the documents.
James’ legal team sharply criticized the prosecution’s repeated efforts. Her lead attorney, Abbe Lowell, described the case as a political vendetta driven by President Donald Trump.
“For the second time in seven days, the Department of Justice has failed in its clear attempt to fulfill President Trump’s political vendetta against Attorney General James,” Lowell said. “Any further attempt to revive these discredited charges would be a mockery of our system of justice.”
The original indictment against James, approved by a grand jury in October, was dismissed last month after a judge ruled that the U.S. attorney overseeing the case had been improperly appointed. A second attempt to re-indict her in Norfolk also failed.
The allegations stemmed from claims that James misrepresented how she intended to use a Norfolk, Virginia home purchased in 2020. Prosecutors initially argued that she falsely classified the property as a second residence rather than a rental, though experts noted that her mortgage agreement did not prohibit renting the home. The most recent proposed indictment shifted focus to whether James personally occupied the residence.
James has consistently denied wrongdoing and pleaded not guilty to the original charges, calling the case politically motivated.
Spokespeople for the U.S. Department of Justice declined to comment.