Federal prosecutors suffered another blow on Thursday after a newly convened grand jury declined to approve fresh mortgage-fraud charges against New York Attorney General Letitia James, according to information confirmed by The NY Post. The development marks the second time authorities have tried — and failed — to advance a criminal case tied to a loan James secured five years ago.
The allegations stemmed from a 2020 transaction in which James, now 67, obtained a substantial loan to purchase a second residence in Norfolk. Interim US Attorney Lindsey Halligan previously brought two counts against her in the Eastern District of Virginia, accusing her of bank fraud and making false statements to a financial institution.
Those accusations initially resulted in an indictment handed up in Alexandria on Oct. 9. However, the case was abruptly halted on Nov. 24 when US District Judge Cameron Currie dismissed the charges entirely, concluding that Halligan was improperly installed in her role and therefore possessed “no lawful authority” to pursue the prosecution.
Following that ruling, federal prosecutors in Norfolk attempted to revive the matter by presenting a revised version of the case to a new jury on Thursday. Despite empaneling jurors specifically to reexamine the allegations, the panel declined to issue an indictment, a source with knowledge of the proceedings said.
While the jury’s refusal once again leaves the government without a case, prosecutors still have an opening. Under procedural rules tied to Judge Currie’s dismissal, authorities are afforded a six-month window in which they may attempt to refile charges should they choose to try yet again.
{Matzav.com}
