New York Attorney General Letitia James outside the United States District Court in Norfolk, Virginia, on October 24. John Clark/AP/File

The Justice Department’s mortgage fraud investigation into New York Attorney General Letitia James is on life support after a grand jury, for the second time, rejected an indictment that would have revived charges against her.

Lindsey Halligan , appointed by President Donald Trump to run the office, now faces the decision on whether to try again next week or pull the plug and risk the wrath of the president who wants James indicted.

The rejection is an embarrassing setback for the Justice department — which had sought to revive the criminal case after a federal judge ruled Halligan was appointed unlawfully — and for the administration, who had pos

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