The U.S. Justice Department could face obstacles in securing a conviction against Letitia James, pictured, even if the charges are resurrected.

The U.S. Justice Department failed Thursday to secure a new indictment against New York Attorney General Letitia James after a judge dismissed the previous mortgage fraud prosecution encouraged by President Donald Trump , according to people familiar with the matter.

Prosecutors went back to a grand jury in Virginia after a judge’s ruling halting the prosecution of James and another longtime Trump foe, former FBI Director James Comey, on the grounds that the U.S. attorney who presented the cases was illegally appointed. But grand jurors rejected prosecutors’ request to bring charges.

It’s the latest setback for the Justice Department in its bi

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