DOJ doesn’t give up after second attempt to charge Letitia James Whiffs
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- The Justice Department’s second attempt to indict New York Attorney General Letitia James for mortgage fraud was dismissed by a Norfolk grand jury, an unusual occurrence since grand juries rarely dismiss cases.
- An earlier indictment secured in Alexandria was dismissed by a U.S. District Judge over the unlawful appointment of Interim U.S. Attorney Lindsey Halligan.
- James denies all charges, calling them baseless, and continues the legal battle with the Trump administration, including appealing a $355 million civil fraud judgment against Trump and his sons.
- The Government Accountability Office has agreed to investigate allegations that FHFA Director Bill Pulte abused federal authority in pursuing criminal referrals against James and three other Democrats.
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The Justice Department is reportedly considering its options after a Virginia grand jury rejected a second attempt to indict New York’s attorney general for mortgage fraud.
The Trump administration is reportedly unwilling to give up on charging New York Attorney General Letitia James with mortgage fraud — despite a judge dismissing the first case against her last month and a grand jury rejecting a second attempt to indict her on Thursday.
The Justice Department secured the former indictment of James on October 9 by a grand jury in Alexandria, Virginia. But that case was dismissed on Nov. 24 by U.S. District Judge Cameron McGowan Currie, who ruled that the prosecutor in the case — interim U.S. Attorney Lindsey Halligan — had been improperly appointed.
Halligan – who had no previous experience as a prosecutor – was reportedly picked by the Trump administration to prosecute James and former FBI Director James Comey, while other Justice Department attorneys were reluctant to do so due to the lack of evidence in the cases.
After the cases against James and Comey were dismissed, the Justice Department then attempted to bring a second indictment against James before another grand jury in Norfolk, Virginia.
The Norfolk grand jury declined to indict James based on the evidence presented to it, “an unusual occurrence” given that “grand juries rarely dismiss a prosecutor’s case,” The Washington Post reported.
Grand jury proceedings are conducted in secret and are reported by the jury After and other news agencies that the Norfolk grand jury declined to indict James based on anonymous sources.
The After and the Associated press reported that Trump administration officials aren’t ready to concede defeat — Justice Department prosecutors can still appeal Currie’s ruling, or try again to file new charges.
In one statementJames said she was “grateful to the members of the grand jury and humbled by the support I have received from across the country.”
“As I have said from the beginning, the charges against me are baseless,” James said. “It is time for this unchecked weaponization of our justice system to stop.”
In her role as attorney general, James last year won a $355 million verdict in a civil fraud case against Trump and two of his sons. An appeals court in August upheld Trump’s liability but overturned the fine, which had risen to $515 million with interest, as excessive. NPR reported.
James has appealed and continues to fight the Trump administration in court on a number of other issues, including federal funding for Planned Parenthood, SNAP benefits and programs for the homeless.
Attorneys for James alleged that Bill Pulte, director of the Federal Housing Finance Agency, and three other Trump administration officials engaged in “outrageous conduct” to obtain the Oct. 9 indictment against her, which they described as baseless.
At the request of Senate Democrats, the U.S. Government Accountability Office has agreed to investigate whether the FHFA and its associates “misused federal authority and resources” in gathering evidence against James and other alleged enemies of the Trump administration.
In his role as head of the federal regulator of Fannie Mae and Freddie Mac, Pulte subjected four prominent Democrats to criminal referrals suggesting they committed mortgage fraud. They all deny wrongdoing, and so far only James has been charged.
California Rep. Eric Swalwell, one of the Democrats facing criminal charges, sued Pulte, the FHFA, Fannie and Freddie on Nov. 25. Swalwell’s lawsuit alleges that Pulte’s acquisition and use of confidential mortgage information from Fannie and Freddie violated the Privacy Act of 1974, which prohibits federal agencies from disclosing sensitive information about individuals for purposes not expressly authorized by law.
Pulte denies weaponizing Fannie and Freddie for political purposes, claiming that mortgage fraud is “rampant” and that the Trump administration will enforce the law against anyone who breaks it, regardless of political party affiliation.
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