In a court filing Wednesday, Oct. 14, Assistant U.S. Attorney Sean Delaney said prosecutors would dismiss the charge with prejudice, meaning it cannot be brought again. The decision follows a July 2025 ruling by the 4th U.S. Circuit Court of Appeals that overturned Mosby’s conviction on that count.

The appeals court found that the trial judge gave jurors improper instructions about venue — where the alleged crime occurred — and that prosecutors had not shown Mosby sent the disputed mortgage document from Maryland. The charge concerned a 2021 “gift letter” stating that her then-husband, former Baltimore City Council President Nick Mosby, would give her $5,000 toward the condo’s closing. Prosecutors said Marilyn Mosby had supplied the money herself, routing it through her husband to an escrow agent. The letter helped her secure a more favorable interest rate, according to the case details.

The Longboat Key condo, assessed at $420,700 in Florida public records, was purchased with money connected to a $90,000 withdrawal from Mosby’s city retirement account. She also used the withdrawal to buy a property in Kissimmee, which she later sold.

The mortgage-fraud decision does not affect Mosby’s two perjury convictions. Those stem from her claim that she qualified for a coronavirus-related financial hardship withdrawal from her retirement account without paying an early-withdrawal penalty. The U.S. Supreme Court declined to hear her appeal of those convictions earlier this month, leaving them in place and putting her law license at risk.

Mosby was convicted of two perjury counts in one trial and of one mortgage-fraud count in a separate trial; jurors acquitted her on another mortgage-fraud count. In May 2024, U.S. District Judge Lydia Kay Griggsby sentenced her to three years of supervised release, including a year of home detention. Mosby declined to comment Wednesday.