Federal prosecutors attempted to add a third felony charge against New York Attorney General Letitia James, but a grand jury in Alexandria, Virginia, declined to indict her on December 11. The proposed charge involved making a false statement to a financial institution, which could have increased James' potential prison sentence. However, the effort fell short, and James currently faces no criminal charges in the mortgage fraud probe.

According to CNN, this marks the third time the Department of Justice (DOJ) has failed to secure an indictment against James. The DOJ's attempts have been criticized as politically motivated, with President Donald Trump accused of using the department to target political opponents.

The original charges against James, filed in October, included one count of making false statements and one count of bank fraud. These charges were dismissed in November due to the invalid appointment of interim U.S. Attorney Lindsey Halligan. Since then, prosecutors have unsuccessfully sought to reindict James twice.

Politico reported that the latest failed indictment omitted earlier claims that James rented out a second home, focusing instead on her alleged failure to occupy it as a second residence. The proposed indictment also removed references to specific financial gains.

Despite the repeated failures, the DOJ may still attempt to bring charges against James in the future. Legal experts, however, suggest that the continued inability to secure an indictment signals the weakness of the case. Randall Eliason, a former federal prosecutor, told Lawfare, "It's incredibly rare for a grand jury to refuse to indict, and for it to refuse to indict repeated times should be sending DOJ a strong signal about the weakness of the case."