Grand Jury Refusals Occur in Two Virginia Courts A grand jury in Alexandria declined to indict Letitia James on Thursday, marking a second refusal within a week after a Norfolk grand jury had earlier rejected the same charge [1][2]. Both juries found insufficient evidence to proceed, halting the Justice Department’s renewed effort to prosecute the case. The rejections represent a significant setback for prosecutors seeking to revive the indictment.

Charges Originated From 2020 Norfolk Home Purchase James was originally accused of bank fraud and false statements tied to a modest 2020 house purchase in Norfolk, Virginia [1][2]. Prosecutors allege she rented the property to a family to qualify for favorable loan terms, violating the “second‑home rider” on the mortgage. The alleged scheme formed the core of the mortgage‑fraud indictment the grand juries declined to adopt.

Legal Dismissals Tied to Improper U.S. Attorney Appointment U.S. District Judge Cameron McGowan Currie dismissed the earlier case after finding that Lindsey Halligan, a former Trump lawyer, was illegally appointed as interim U.S. attorney for the Eastern District of Virginia [1][2]. Halligan’s appointment followed direct pressure from President Trump to target political opponents, prompting the judge’s ruling and allowing the DOJ to attempt a refiling. The appointment controversy underpins both the original dismissal and the current grand‑jury refusals.

Future DOJ Action and Defense’s Vindictive‑Prosecution Claim Prosecutors say they will continue evaluating whether to bring a new indictment despite the juries’ rejections [1][2]. James’s lawyers argue the case is a vindictive prosecution aimed at a vocal Trump critic who has sued the former president and secured a large fraud judgment [2]. The first article also notes the broader context of similar challenges in the Comey case, highlighting ongoing disputes over the legitimacy of the prosecutions.