Another Grand Jury Rejects Mortgage Fraud Claims Against NY AG Letitia James

Well, it seems New York Attorney General Letitia James can breathe a significant sigh of relief, at least on one front. For the second time in recent memory, a special grand jury in Albany County has emphatically rejected a proposed mortgage fraud indictment against her. This decision effectively closes, for now, a persistent legal challenge that has shadowed her office, stemming from allegations related to a mortgage for her Brooklyn residence.

The push for this indictment came from Michael Sussman, an attorney notably associated with Donald Trump's legal skirmishes. Sussman had presented his arguments to the grand jury, seeking to convince them that AG James had committed fraud. However, after reviewing the evidence and hearing his case, the panel of citizens ultimately decided that the allegations simply didn't hold water for an indictment to move forward. It’s a familiar story, as a similar set of claims brought by Sussman was also rebuffed by a grand jury just last year.

At the heart of Sussman's allegations was a 2013 mortgage application. James, then a city councilwoman, applied for a $500,000 loan for a home in Brooklyn. Sussman claimed she misrepresented her primary residency, asserting she primarily lived in Albany at the time due to her political duties, while stating her Brooklyn address on the application. The argument, as you might imagine, hinged on whether this constituted a deliberate deception designed to secure the mortgage.

Naturally, the Attorney General's office wasn't silent. Kim Devlin, a spokesperson for James, didn't mince words, calling these accusations "baseless" and "a blatant attempt to intimidate and harass the Attorney General." And indeed, James had previously been cleared of very similar allegations by the state’s Joint Commission on Public Ethics (JCOPE) way back in 2022. So, for her team, this latest grand jury decision simply reaffirms what they’ve been saying all along.

It's hard to discuss Sussman's efforts without acknowledging the broader political landscape. He's been quite active, pursuing various legal actions against figures who have clashed with Donald Trump. In fact, he also accused Manhattan District Attorney Alvin Bragg of mortgage fraud, another set of claims that a grand jury ultimately rejected. Many observers can't help but see these actions as, perhaps, a form of retaliation, especially given AG James's prominent civil fraud lawsuit against Trump and his company, which famously resulted in a hefty $450 million judgment against him. The legal chess game, it seems, continues, even if this particular move didn't pan out for Sussman.

Ultimately, this decision by the Albany County grand jury sends a clear signal: the legal system, through this avenue, finds no merit in pursuing criminal charges against Letitia James over these mortgage fraud claims. For the Attorney General, it’s a moment to refocus on her official duties, now with one less public legal battle looming over her head. For the public, it offers another glimpse into the often-tangled intersection of law, politics, and persistent accusation.