Justice Department Investigates Federal Reserve Governor Lisa Cook for Alleged Mortgage Fraud

WASHINGTON, D.C. — The U.S. Department of Justice has initiated a criminal investigation into Federal Reserve Governor Lisa Cook following allegations of mortgage fraud. The inquiry stems from a criminal referral made by Federal Housing Finance Agency Director Bill Pulte, which raised concerns about Cook listing multiple properties as her primary residence to secure lower mortgage rates.

Documents obtained by Reuters indicate that Cook, who has properties in Michigan, Georgia, and Massachusetts, is now facing grand jury subpoenas in both Georgia and Michigan. This investigation is being led by Ed Martin, appointed by Attorney General Pam Bondi to assist in mortgage fraud cases involving public officials.

Pulte, who was appointed by former President Donald Trump, accused Cook of committing fraud by misstating property information when applying for mortgages. Cook’s legal team argues that any alleged discrepancies were unintentional clerical errors that did not deceive any parties involved.

In light of the allegations, Trump attempted to remove Cook from her position, claiming her actions warranted dismissal. Cook has since filed a lawsuit challenging this dismissal, stating it lacks legal standing and is politically motivated.

Cook maintains that she fully disclosed her mortgage information during the vetting process for her Federal Reserve appointment in 2022. Her mortgage agreements reportedly offered lower rates compared to national averages for similar properties.

This latest investigation is part of a broader scrutiny of public officials amid ongoing allegations of misconduct. Besides Cook, the Justice Department is also looking into similar accusations involving Democratic U.S. Senator Adam Schiff and New York Attorney General Letitia James.

Martin’s office, which has denied any political bias in the investigations, acknowledges the challenges in proving fraud in mortgage cases, particularly when lenders are already aware of the circumstances surrounding a loan.

As the investigation develops, further legal battles loom, including potential ramifications for the Federal Reserve’s independence if Cook is removed from her position.