string(9) "wordpress" Letitia James mortgage fraud case thrown out, but can be refiled | Inman Real Estate News

Quick Read

  • A federal judge dismissed mortgage fraud charges against New York Attorney General Letitia James, ruling that interim U.S. Attorney Lindsey Halligan was unlawfully appointed.
  • U.S. District Judge Cameron McGowan Currie left room for the Department of Justice to seek a new indictment against James if filed by a lawfully appointed prosecutor.
  • Judge Currie also dismissed charges against former FBI Director James Comey brought by Halligan, and suggested that the statute of limitations in that case has expired, which would bar refiling.
  • White House press secretary Karoline Leavitt stated the DOJ intends to appeal the rulings, while James and Comey condemned the prosecutions as politically motivated.
An AI tool created this summary, which was based on the text of the article and checked by an editor.

The prosecutor who filed charges against James and former FBI Director James Comey was unlawfully appointed, a judge ruled.

A federal judge Monday dismissed mortgage fraud charges against New York Attorney General Letitia James after ruling that the prosecutor in the case, interim U.S. Attorney Lindsey Halligan, was unlawfully appointed.

U.S. District Judge Cameron McGowan Currie ruled that the Department of Justice can seek a new indictment against James — if it’s brought by a lawfully appointed prosecutor.

“This case presents the unique, if not unprecedented, situation where an unconstitutionally appointed prosecutor, exercising ‘power she did not lawfully possess,’ … acted alone in conducting a grand jury proceeding and securing an indictment,” Currie ruled.

TAKE THE INMAN INTEL SURVEY FOR NOVEMBER

But in dismissing another case brought by Halligan against former FBI director James Comey, Currie indicated that the statute of limitations has expired and the government would be barred from refiling it.

“I’m grateful that the court ended the case against me, which was a prosecution based on malevolence and incompetence and a reflection of what the Department of Justice has become under Donald Trump, which is heartbreaking,” Comey said on Instagram.

“I know that the Department of Justice intends to appeal these rulings very soon, if they haven’t already,” White House press secretary Karoline Leavitt said Monday.

Halligan was the Trump administration’s pick to replace Erik Siebert, the U.S. Attorney for the Eastern District of Virginia, who resigned on Sept. 20 after Trump publicly pressured him to bring charges against James and Comey.

James’ attorneys argued that Halligan was a member of a “Trump-directed quartet” that “engaged in outrageous conduct” to indict her on baseless allegations of mortgage fraud.

Federal Housing Finance Agency Director Bill Pulte has referred three other perceived enemies of the Trump administration — Sen. Adam Schiff, Federal Reserve Governor Lisa Cook and Rep. Eric Swalwell — to the Department of Justice for investigation of mortgage fraud.

Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×