DOJ Launches Criminal Mortgage Fraud Probe Into Fed Governor Lisa Cook

(MENAFN- Live Mint) The US Justice Department has opened a criminal mortgage fraud investigation into Federal Reserve Governor Lisa Cook, issuing grand jury subpoenas in both Georgia and Michigan, according to documents reviewed by Reuters and a source familiar with the matter.

The probe follows a criminal referral from Federal Housing Finance Agency Director Bill Pulte and is being conducted by Ed Martin, appointed by Attorney General Pam Bondi as a special assistant US attorney to handle mortgage fraud cases involving public officials. The US Attorneys' offices in the Northern District of Georgia and the Eastern District of Michigan are also involved.

Allegations against Cook

Pulte, who was appointed by President Donald Trump, has accused Cook of committing fraud by listing multiple properties as her primary residence when applying for mortgages, allegedly to secure lower interest rates. Cook owns properties in Michigan, Georgia, and Massachusetts.

Cook was terminated by Trump following Pulte's allegations. She subsequently filed a lawsuit challenging her removal. In her legal filings, Cook stated she disclosed mortgages on three properties in forms submitted to the White House and the US Senate during the vetting process for her Fed appointment in 2022.

“Any inconsistencies were known when I was confirmed and cannot give Trump grounds to fire me now,” Cook wrote in her court filings.

Implications for Federal Reserve independence

The case has significant implications for the Federal Reserve's independence, which is widely viewed as crucial for maintaining effective monetary policy and controlling inflation. Trump has repeatedly pressured the Fed to cut interest rates aggressively, criticizing Fed Chair Jerome Powell for his approach.

Other public officials under scrutiny

Cook is the third public official facing a criminal investigation over mortgage fraud allegations. Martin, who also oversees the“Weaponization Working Group” and serves as pardon attorney, is reportedly pursuing separate criminal probes into Democratic US Senator Adam Schiff and New York Attorney General Letitia“Tish” James. Grand juries have been convened in those cases, which began prior to Martin's appointment as a special assistant US attorney, according to the source and Reuters-reviewed documents.

Also Read | Donald Trump warns 'US may have to unwind trade deals and will suffer greatly...'

MENAFN04092025007365015876ID1110019497