The Justice Department has launched a criminal investigation into Federal Reserve Governor Lisa Cook over allegations she submitted fraudulent information on multiple mortgage applications.
The probe was confirmed just days after Cook sued to block President Trump’s attempt to remove her from the central bank’s board, where she helps shape U.S. economic policy. The investigation now threatens to complicate her legal fight and could delay a ruling from U.S. District Judge Jia Cobb, who recently called both sides into court for a status hearing.
The allegations stem from referrals made by Bill Pulte, a Trump appointee to the Federal Housing Finance Agency. Pulte tied Cook to three mortgages in Michigan, Georgia, and Massachusetts, raising questions about whether she misrepresented the properties’ intended use. Trump cited those allegations in his move to oust her from the Fed.
Cook’s attorneys had previously argued that the lack of a formal DOJ probe undermined the accusations. Her lawsuit, filed August 28, contends Trump’s action is unlawful and threatens the Fed’s independence. The complaint did not address why two homes were listed as primary residences on loan filings.
Cook’s lawyer, Abbe Lowell, responded in a September 2 filing that she “did not ever commit mortgage fraud.” On Friday, her legal team clashed with federal attorneys over whether Trump, as commander-in-chief, has sufficient “cause” to remove her from the board.
