New York Attorney General Letitia James, a staunch critic and prosecutor of President Donald Trump, finds herself at the center of a escalating legal battle as her attorney, Abbe Lowell, delivered a pointed warning to federal prosecutors amid repeated failed attempts to indict her.
The comments come just days after a second federal grand jury rejected efforts by the Department of Justice (DOJ) to charge James with alleged mortgage fraud, marking another significant setback for what critics call a politically motivated retaliation campaign.
In an appearance on MSNBC’s “Briefing with Jen Psaki” (rebranded as MS NOW), Lowell addressed the possibility of countersuing those involved in the probes against James.
“Let’s be clear that when federal officials or state officials abuse their power, there are protections and there are ways to seek redress,” Lowell stated. He added, “I can’t really tip off what we’re going to do or when, but the people on the other side should be fairly warned that they’ve already crossed the line and an additional crossing the line won’t go well when those kinds of issues are considered by a court.”
The warning underscores growing concerns over the weaponization of the justice system, with James’ team signaling potential legal action against prosecutors for overreach. Lowell’s remarks highlight the high bar for protections afforded to officials performing their duties, while stressing accountability for abuses of authority.
The backstory traces to James’ high-profile civil fraud case against Trump and his organization, which resulted in a $454 million judgment against the former president in 2024 for inflating asset values.
Following Trump’s return to the White House in January 2025, the DOJ, under his administration, initiated investigations into James, alleging she committed mortgage fraud by misrepresenting her Virginia vacation home as her primary residence to secure favorable loan rates in 2019. James and Lowell have vehemently denied the claims, providing documents showing she never claimed the property as her primary residence and emailing a broker to clarify it “WILL NOT be my primary residence.”
The first grand jury in Alexandria, Virginia, declined to indict James last week, dismissing the case after a federal judge had previously thrown out an initial filing for lack of evidence. Prosecutors refiled, but on December 11, 2025, a second grand jury again refused to proceed, dealing a major blow to the DOJ’s efforts. Sources familiar with the proceedings described the rejections as indicative of insufficient evidence and potential political bias in the prosecution.
James, who has positioned herself as a defender of accountability, has not backed down from her criticisms of Trump. In a recent statement, she reiterated her commitment to upholding the rule of law, saying, “I won’t back down” in the face of what she describes as baseless attacks. Legal experts suggest the failed indictments could bolster James’ position in any future countersuits, potentially invoking protections under laws against malicious prosecution and abuse of process.
The episode has drawn widespread attention, with figures like former FBI Director James Comey reportedly resisting pressure to pursue similar charges. As tensions rise, Lowell’s interview serves as a clear signal that James’ legal team is prepared to fight back aggressively.
