Court Docs: DOJ Failed to Add Third Felony Charge for James

Federal prosecutors tried but failed to convince a grand jury to add a third felony charge to a proposed indictment against New York Attorney General Letitia James, according to newly unsealed court records.

The Justice Department sought to persuade jurors in Alexandria, Virginia, to approve an additional charge of making a false statement to a financial institution. The proposed count would have been added to two earlier charges — another false statement count and one count of bank fraud — stemming from a failed October indictment.

Court filings dated Dec. 11 and unsealed this week show that at least 12 grand jurors declined to indict James on any of the charges, resulting in a refused indictment, or "no true bill."

Had the grand jury approved the new charge, James could have faced a longer prison sentence, if convicted. Each count carries a potential sentence of up to 30 years in prison and fines of up to $1 million, though such penalties are rarely imposed on first-time offenders.

Prosecutors asked to keep the court records under seal, but U.S. Magistrate Judge William Porter denied that request. In a written order issued Monday, Porter noted that the grand jury's refusal to indict was announced in open court and had already been widely reported before prosecutors moved to seal the records.

"Because the public already had access to the grand jury's decision on the no bill before the grand jury returned it in open court, no basis exists to seal this information now," Porter wrote.

The judge also rejected the government's claim that sealing the records would protect James from the burden of defending against charges that lacked sufficient evidence. Porter said transparency was better served by making the grand jury's decision public, particularly because James had already faced public felony accusations that were later dismissed.

"The grand jury's decision to make this no bill public serves the interest of transparency when an individual has already suffered the stigma of public criminal charges," Porter wrote.

Porter agreed to temporarily stay his order to allow prosecutors time to appeal, but no appeal appears to have been filed to date.

James was originally indicted in October on two felony counts related to allegations that she misrepresented her intended use of a Virginia home to secure more favorable loan terms. That case was dismissed after a judge ruled that Lindsey Halligan — a U.S. attorney appointed by President Donald Trump — had been unlawfully installed in the role.

Despite initially signaling an appeal, prosecutors instead sought to revive the case through a new indictment effort. Both attempts have now failed.

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