A federal grand jury declined Thursday to indict New York Attorney General Letitia James, dealing a setback to prosecutors who filed a revised mortgage fraud criminal case, The Post can confirm.

James, 67, had faced two counts brought by interim US Attorney Lindsey Halligan in the Eastern District of Virginia for alleged bank fraud and making false statements to a financial institution related to a six-figure loan she obtained in 2020 to buy a second home in Norfolk.

That indictment was handed up by a grand jury in Alexandria, Va., federal court on Oct. 9 — but thrown out by US District Judge Cameron Currie on Nov. 24, who ruled that Halligan was improperly appointed to her position and had “no lawful authority” to bring the charges.

A federal grand jury has declined to indict NY AG Let

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