Key Developments

Federal prosecutors in Virginia have once again failed to persuade a grand jury to re-indict New York Attorney General Letitia James on criminal charges. This marks the second unsuccessful attempt by the Department of Justice (DOJ) to secure a new indictment against her.

The DOJ’s efforts over the past two weeks followed the dismissal of the original indictment in the Eastern District of Virginia, which charged James with bank fraud and making false statements to a financial institution in connection with a mortgage. James has consistently denied any wrongdoing.

It is extremely rare for a grand jury to reject an indictment after a prosecutor formally requests one, underscoring the unusual nature of this case.

Background of the Case

The initial indictment of James, along with another one against former FBI Director James Comey in the same district, was dismissed after U.S. District Judge Cameron Currie ruled that Lindsey Halligan—the interim top prosecutor in the Eastern District of Virginia—had been improperly appointed. Halligan subsequently presented evidence against both James and Comey to separate grand juries.

Former President Donald Trump had publicly called for the prosecution of both James and Comey. Halligan, the interim prosecutor who presented the cases, previously served as Trump’s personal lawyer, which has raised questions about the political dimensions of the prosecutions.

Defense Response

James’ attorney, Abbe Lowell, criticized the DOJ’s efforts in a statement, saying, “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 added, “This unprecedented rejection makes even clearer that this case should never have seen the light of day. Career prosecutors who understood the issues refused to bring charges, and now two different grand juries in two separate cities have also rejected these baseless allegations.”

He further argued, “This case has already tarnished the Department’s reputation and raises serious questions about its integrity. Any further attempts to revive these discredited charges would undermine public trust and mock the system of justice.”

Political Context and Historical Background

Letitia James has long been a vocal opponent of Trump. She previously filed a civil lawsuit against Trump, the Trump Organization, and his adult sons, which resulted in a New York state court ruling that Trump and his company were liable for business fraud. The case found that they had repeatedly misrepresented the true value of real estate assets, significantly overstating Trump’s net worth.

Although a state appeals court in August overturned the financial penalties exceeding $500 million, the court upheld the ruling that Trump had engaged in business fraud. James’ legal actions against Trump have often drawn national attention and intensified political tensions.

Legal Considerations

According to the DOJ manual, “Once a grand jury returns a no-bill or otherwise acts on the merits in declining to return an indictment, the same matter—meaning the same transaction or event and the same putative defendant—should not be presented to another grand jury or resubmitted to the same grand jury without first securing the approval of the responsible United States Attorney.” This provision highlights the unusual nature of the DOJ’s repeated attempts to pursue charges against James.

Ongoing Developments

CNBC has requested comment from the U.S. Attorney’s Office for the Eastern District of Virginia, which initially sought the indictment. As of now, the future of the case remains uncertain, but the repeated grand jury rejections have cast significant doubt on the viability of further prosecution.