The Trump Justice Department suffered another humiliating setback last week in their relentless pursuit of New York Attorney General Letitia James. In Alexandria, Virginia, a grand jury rejected a third proposed indictment, this one adding an extra felony charge that could have landed James, 67, behind bars for decades.
The new, never-before-reported charge accused James of making a false statement to a financial institution, supplementing the previous counts of bank fraud and one other false statement. Each charge carries a potential 30-year prison sentence and fines up to $1 million—though, in reality, sentencing under federal guidelines would likely be far lower for a first-time offender.
Prosecutors tried to keep the failed indictment under wraps, asking a magistrate judge to seal the documents. Judge William Porter, however, refused. His Monday order made clear that the grand jury presented the “no true bill” in open court and that news outlets had already reported on the proceedings.
“The Court will not speculate why the grand jury disclosed the no bill in open court,” Porter wrote. “Public disclosure serves the interest of transparency given that the criminal allegations against James are already well publicized and the decision not to indict was publicly reported even before the foreperson appeared before the judge.”
The Justice Department argued that sealing the records would protect the grand jurors and prevent James from enduring unnecessary trial costs. Porter did grant a temporary pause on unsealing the documents so the government could appeal, but court records show no sign that prosecutors have done so, Politico reports.
James’ legal team was quick to pounce. Lead attorney Abbe Lowell said, “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. This unprecedented rejection makes even clearer that this case should never have seen the light of day. Any further attempt to revive these discredited charges would be a mockery of our system of justice.”
The failed indictment is just the latest embarrassment for Trump’s Justice Department. A two-count indictment in Alexandria in October was dismissed last month after a judge ruled that Lindsey Halligan, the Trump-picked U.S. attorney in the district, was illegally appointed. A subsequent attempt in Norfolk also fell flat, with the grand jury declining to issue charges.
The initial case accused James of misrepresenting her intentions to rent a second home—a point experts say was legally flimsy, as her mortgage contract didn’t prohibit renting. The latest indictment shifted focus, claiming James didn’t personally occupy the home, while adding a second false statement charge tied to the same property purchase. It also removed earlier references to First Savings Bank and a specific forfeiture amount of $18,933, further watering down the original indictment.
The indictment bore the names of four Justice Department lawyers: Halligan, Deputy Attorney General Todd Blanche, First Assistant U.S. Attorney Robert McBride, and Assistant U.S. Attorney Roger Keller Jr., though Keller was absent when the grand jury foreperson delivered the “no true bill.”
After three failed attempts, the DOJ’s pursuit of James increasingly looks less like law enforcement and more like political theater. Each failure exposes the fragility of these cases and leaves the department looking desperate—and embarrassed—while James stands unscathed.
