Government Probes Federal Reserve Governor Lisa Cook Over Mortgage Fraud Allegations

The United States Justice Department has opened a criminal probe into Federal Reserve Governor Lisa Cook, focusing on allegations of mortgage fraud.

According to Reuters, citing documents and sources familiar with the matter, the probe centres on claims that Cook misrepresented information on mortgage applications, specifically regarding properties in Michigan, Georgia, and Massachusetts.

The probe is a sequel to a criminal referral from Federal Housing Finance Agency Director Bill Pulte. It is being conducted by Ed Martin, who was tapped by Attorney General Pam Bondi as a special assistant U.S. attorney to assist with mortgage fraud investigations involving public officials, along with the U.S. Attorneys’ offices in the Northern District of Georgia and the Eastern District of Michigan, according to the person, who spoke anonymously since the matter is not public.

Pulte, whom Trump appointed, has accused Cook of committing fraud by listing more than one property as a primary residence when she applied for mortgages, potentially to secure lower interest rates. Cook owns properties in Michigan, Georgia, and Massachusetts.

Trump terminated Cook’s appointment over Pulte’s mortgage fraud allegations against her, prompting her to file a lawsuit challenging his effort to oust her.

The case, which will likely end up before the U.S. Supreme Court, has ramifications for the Fed’s ability to set interest rate policy without regard to politicians’ wishes, widely seen as critical to any central bank’s ability to keep inflation under control.

Trump has demanded that the U.S. central bank cut rates immediately and aggressively, berating Fed Chair Jerome Powell for his stewardship of monetary policy.

In one of her recent legal filings challenging Trump’s actions, Cook said she listed mortgages on three properties on forms submitted to the White House and U.S. Senate in the vetting process for her appointment to the Fed in 2022.

Any inconsistencies were known when she was confirmed, and she cannot give Trump grounds to fire her now.

Cook is the third public official to be targeted in a criminal investigation over mortgage fraud allegations.

Martin, who also presides over the “Weaponisation Working Group” and serves as pardon attorney, is also pursuing criminal probes into Democratic U.S. Senator Adam Schiff as well as New York Attorney General Letitia “Tish” James.

There are also grand juries convened in those two cases, which started prior to Martin’s new appointment as a special assistant U.S. attorney, according to the source and documents seen by Reuters.