The Justice Department has reportedly launched a criminal probe into allegations that former Federal Reserve Governor Lisa Cook committed mortgage fraud.
President Donald Trump last month fired Cook “for cause” over the allegations.
From The Wall Street Journal:
The Justice Department has opened a criminal investigation into Federal Reserve governor Lisa Cook, issuing subpoenas as part of an inquiry into whether she submitted fraudulent information on mortgage applications, according to U.S. officials familiar with the matter.
The initial scrutiny has centered on Cook’s properties in Ann Arbor, Mich., and Atlanta, with investigators using grand juries as part of the probe, the officials said.
The investigation comes on the heels of two criminal referrals from Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency, who has publicly alleged that Cook engaged in mortgage fraud. President Trump has cited those allegations in his bid to fire Cook and wrest control of a central bank that has historically remained independent.
Cook’s lawyer, Abbe Lowell, didn’t immediately respond to a request for comment. A Justice Department spokesman declined to comment.
Cook filed a lawsuit last month alleging Trump’s move to fire her was unlawful. She argued Trump “concocted” a basis for her firing to vacate a seat on the board that he can fill to “forward his agenda to undermine the independence of the Federal Reserve.”
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In her legal filing, Cook argued that her firing violated the law and her constitutional rights because the Federal Reserve Act only allows a president to fire a governor “for cause,” not because of political disagreements or vague allegations.
The former official insists she was never given a fair hearing or proper notice and that she “has been deprived of her Fifth Amendment right to due process, and of her right to process under the Federal Reserve Act.”
“Setting aside the fact that Governor Cook did not ever commit mortgage fraud, any such pre-office offense plainly would not have been ‘so infamous a nature, as to render the offender unfit to execute any public franchise,’” the document read.
JUST IN: 🇺🇸 US Department of Justice launches criminal investigation into Federal Reserve Governor Lisa Cook. pic.twitter.com/clojgSASEY
— Watcher.Guru (@WatcherGuru) September 4, 2025
Earlier this week, it was revealed that some of the homes she listed as primary residences on her mortgage paperwork were being rented out to tenants. The Michigan Enjoyer’s Charlie LeDuff reported that Cook “has a bank loan on a ‘secondary home in Massachusetts, which the Trump administration alleges she rents out full-time,” and also “owns a condo in Atlanta, which she claims is her primary residence.”
If this is true, it could mean Cook fraudulently obtained favorable mortgage rates by misrepresenting her occupancy status.
However, as The Wall Street Journal pointed out, the Justice Department rarely prosecutes people for this conduct.
Felony convictions of mortgage fraud are relatively rare. In 2024, there were 38 federal mortgage fraud offenders who received an average prison sentence of 14 months, according to the U.S. Sentencing Commission.
A 2023 report from the Federal Reserve Bank of Philadelphia found that one-third of single-family home investors misrepresent their occupancy status on their mortgage applications.
There is also the fact that Cook is a high-profile individual and former government official, which could suggest that she will never face accountability. But even if this happens, her reputation will certainly take a devastating hit.
Editor’s Note: Help us continue to report the truth about corrupt government officials like Lisa Cook.
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