Overview
- Prosecutors re-presented mortgage and bank fraud allegations to a Norfolk, Virginia grand jury on Dec. 4, 10 days after a judge set aside the original case, and jurors returned a no true bill.
- The Justice Department declined to comment on the secret proceedings, and sources say prosecutors may attempt to seek an indictment a third time.
- U.S. District Judge Cameron McGowan Currie previously ruled that interim U.S. Attorney Lindsey Halligan was unlawfully appointed, voiding indictments against James and former FBI Director James Comey without prejudice.
- The allegations against James center on claims she misrepresented a Norfolk house as a second home to obtain more favorable mortgage terms; she has denied wrongdoing and called the case politically driven.
- Legal observers noted the rarity of a federal grand jury rejecting prosecutors’ request, as questions about political pressure from President Trump and potential timing hurdles in the related Comey matter persist.