In a rare move, a federal grand jury in Alexandria, Virginia, refused to indict New York Attorney General Letitia James on Thursday, according to a federal law enforcement source and another person familiar with the matter who spoke to NBC News.
Background of the Case
The decision comes after the Justice Department (DOJ) has made three attempts to bring charges against James, all of which stem from a months‑long pressure campaign by former President Donald Trump. The DOJ had previously brought mortgage‑related charges against James, which a federal judge dismissed last month. The judge ruled that the prosecutor in both cases was unlawfully appointed, citing the appointment of former Trump lawyer Lindsey Halligan as interim U.S. Attorney for the District of Virginia.
DOJ’s Recent Efforts
Last week, the DOJ tried again to secure a new indictment in Norfolk, Virginia, but the effort failed. The DOJ has not responded to a request for comment, and James’ attorneys have likewise declined to comment. Before the first case was dismissed, James had pleaded not guilty to charges tied to a mortgage on a Norfolk home. The Trump administration alleged that by declaring the home her second residence, she saved roughly $50 a month on her mortgage payment.
Political Context
James has been a political target for Trump since she investigated the Trump Organization for fraud. She said the company “reaped hundreds of millions of dollars in ill‑gotten gains,” by routinely overvaluing properties and obtaining bank loans and insurance policies at lower rates. Trump was found liable for fraud in the civil suit, and a divided state appeals court upheld the fraud filing but found the $464 million judgment “excessive.”
The Grand Jury Process
It is uncommon for a federal grand jury to reject charges, as the process is heavily weighted in favor of the government. Prosecutors need only convince 12 of at least 16 grand jurors that they meet the probable‑cause threshold, a lower standard than the “beyond a reasonable doubt” requirement at trial. Under longstanding DOJ practices, federal prosecutors are expected to move forward with a case only if it is likely to secure a conviction.
DOJ’s Use of Out‑of‑State Prosecutors
The DOJ brought in out‑of‑state federal prosecutors to try to build a case against James. Career prosecutors in the Eastern District of Virginia had previously concluded that the case was too weak to move forward. Trump’s own nominee to lead the office, Erik Siebert, resigned amid pressure from the president to pursue the case.
Key Takeaways
- The grand jury in Alexandria rejected the DOJ’s third indictment attempt against Letitia James.
- A federal judge had earlier dismissed mortgage‑related charges, citing an unlawfully appointed prosecutor.
- The case reflects ongoing political tensions between the DOJ and former President Trump’s administration.
The outcome underscores the challenges the DOJ faces when attempting to prosecute a high‑profile state official under political pressure. It also highlights the procedural safeguards that exist at the grand jury level, even as the DOJ seeks to enforce federal law.
