DOJ Investigates Fed Governor Cook Over Alleged Mortgage Fraud

The Justice Department has launched a criminal investigation into Federal Reserve Board member Lisa Cook over allegations of mortgage fraud related to two properties she purchased in Michigan and Georgia. The investigation follows a criminal referral from Bill Pulte, director of the Federal Housing Finance Agency, who accused Cook of falsely claiming the homes as primary residences to secure more favorable mortgage terms. Cook denies intentional wrongdoing, attributing any issues to clerical errors and asserting no harm was caused, while her legal team claims the investigation is politically motivated by President Donald Trump’s administration to remove her from the Fed board. Trump has sought to oust Cook, leading to a legal battle in which Cook is fighting to retain her position, arguing the effort aims to undermine the Federal Reserve’s independence. The probe, which includes subpoenas issued by the DOJ, is being overseen by Ed Martin, director of the department’s Weaponization Working Group, who is also investigating other political figures referred by Pulte. The situation places the Federal Reserve in a delicate position as it continues its monetary policy work amid concerns about potential political interference.