Mortgage fraud charges against NY AG Letitia James dismissed by federal judge

A federal judge has dismissed the criminal case against New York Attorney General Letitia James, ruling that the prosecutor who brought the charges was unlawfully appointed and therefore lacked legal authority to present the case to a grand jury.

Senior U.S. District Judge Cameron McGowan Currie, sitting by designation in the Eastern District of Virginia, issued the decision on Monday, ruling that President Donald Trump‘s appointment of Lindsey Halligan as interim U.S. attorney was a violation of federal law.

The filings detail that Halligan, a former White House aide, was “the sole prosecutor who presented the case to the grand jury” and had “no prior prosecutorial experience.”

The court also ruled that U.S. Attorney General Pam Bondi exceeded her authority in appointing Halligan because, under federal law, the AG’s power to appoint an interim U.S. attorney expires after 120 days. After that period, only the district court may make interim appointments.

In this case, the 120-day window had already closed when Halligan was installed in September. Because of that, Halligan “had no lawful authority” when she presented evidence to the grand jury and signed the indictment, Currie wrote. All actions flowing from her appointment, including the indictment, were declared invalid.

As a result, Currie wrote that James’ indictment, as well as the indictment against former FBI Director James Comey, would be dismissed without prejudice. Prosecutors could refile charges in the future through a lawfully appointed official.

Until a new U.S. attorney is confirmed by the Senate, the court holds the authority to make any interim appointment for the district.

James was indicted in October on one count of bank fraud and one count of making a false statement to a financial institution following an extensive mortgage fraud investigation. Comey was charged with making false statements to Congress and obstructing a congressional investigation. Both have denied the allegations.

“I am heartened by today’s victory and grateful for the prayers and support I have received from around the country,” James said in a statement reported by several news outlets. “I remain fearless in the face of these baseless charges as I continue fighting for New Yorkers every single day.”

The U.S. Department of Justice (DOJ) began a criminal investigation in May related to James’s alleged mortgage fraud, which followed a criminal referral by Federal Housing Finance Agency (FHFA) Director Bill Pulte in April.

The DOJ did not immediately return HousingWire‘s request for comment.