"We filed a notice today that we had terminated the grand jury inquiry," said U.S. Attorney's Office spokeswoman, Emily Langlie.
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The decision to drop the case came just days after Bellevue police launched an investigation into the former Miss Washington pageant contestant who claims Copperfield lured her to his private island in the Bahamas in 2007 and raped her.
The Seattle Times has reported that the former Miss Washington beauty pageant contestant, who is 22, is being investigated for alleged prostitution and making a false statement.
According to numerous news reports, Bellevue police report the former beauty title contender was questioned last month after a businessman allegedly accused her of attempting to extort $2,000 from him for sexual favors.
Federal prosecutors are not saying there is a link between its decision not to charge Copperfield and the Bellevue investigation. The U.S. Attorney's Office declined to make further comment.
Although federal investigators have dropped their investigation against Copperfield, a civil suit filed by the woman is still pending.
Becky Roe, a Seattle lawyer who is representing the young woman in her civil case against Copperfield said "she has been under incredible scrutiny. Copperfield has tremendous resources. I think in the end you're going to find out that this (new) case is completely overblown."
Ms. Roe said the civil case against Copperfield will continue and the decision by federal prosecutors not to seek charges means that additional information from the FBI's investigation into what happened in the Bahamas will now be available.
Almost 3 years ago, the Miss Washington USA beauty contestant claims she was raped by the magician on his private islands in the Bahamas. Copperfield has repeatedly denied he ever forced himself on the beauty contestant and no federal charges were ever filed.
There has been no explanation to why the case was dropped, but a criminal investigation did occur. Authorities searched Copperfield's property warehouse and magic museum in Las Vegas. Copperfield's Seattle lawyers, Angelo Calfo and Patty Eakes, said they would have no comment on the case at this point.
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