Says alternative is Legislature approval of his plan for an independent monitor.
The unarmed teen was shot and killed by Officer Richard Haste in his Bronx Home in February 2012.
In the wake of Eric Garner's death, relatives were set to meet with the NYPD Inspector General.
It's been eight months since the U.S. Attorney's Office announced it would review the case.
Ramarley Graham's parents are suing the city and NYPD in a wrongful death case.
Graham's family called for a federal investigation after a Bronx grand jury didn't indict a NYPD officer.
Lawyers for Richard Haste said he was told by fellow officers that the teen had a gun.
Franclot Graham and Constance Malcolm say there is "no justice but injustice."
Bronx District Attorney told Ramarley Graham's mother the news Wednesday as she delivered petitions.
Ramarley Graham's family plans to rally outside the DA's office Thursday calling for a new indictment.
The Bronx District Attorney's office gave the grand jury faulty instructions, said the judge.
Franclot Graham said the police shooting of son was similar to the death of Kimani Gray, 16, in Flatbush.
The family of Ramarley Graham, whom a cop fatally shot, has filed a lawsuit against the city.
Officer Richard Haste, 31, is charged with manslaughter for shooting unarmed teen Ramarley Graham.
Hodean and Kodean Graham suffered enough with the NYPD shooting of their brother, supporters said.
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