The U.S. Justice Department has opened a criminal investigation into Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, according to documents reviewed by Reuters and a source familiar with the case.
Grand jury subpoenas have been issued in Georgia and Michigan as part of the probe. The investigation stems from a referral by Federal Housing Finance Agency Director Bill Pulte, who accused Cook of misrepresenting her properties to qualify for better mortgage rates. Cook owns homes in Michigan, Georgia, and Massachusetts.
The case is being led by Ed Martin, who was appointed by Attorney General Pam Bondi as a special assistant U.S. attorney to oversee mortgage fraud cases involving public officials. He is working alongside prosecutors in the Northern District of Georgia and the Eastern District of Michigan.
Pulte, a Trump appointee, alleged that Cook listed more than one property as her “primary residence” on mortgage applications. Former President Donald Trump later moved to fire Cook based on those claims, prompting her to file a lawsuit challenging his decision.
Cook’s lawyer, Washington attorney Abbe Lowell, dismissed the Justice Department’s probe as politically motivated.
“He wants cover, and they are providing it,” Lowell said, arguing that Cook’s disclosures about her properties had already been reviewed during her 2022 confirmation process. “The questions over how Governor Cook described her properties from time to time are not fraud.”
The dispute could ultimately land before the U.S. Supreme Court and carries significant implications for the Federal Reserve’s independence. The central bank’s ability to set interest rates without political interference is seen as crucial for controlling inflation.
Trump has repeatedly attacked the Fed and demanded sharp rate cuts, often criticizing Fed Chair Jerome Powell’s handling of monetary policy.
In court filings, Cook said she had disclosed mortgages on three properties to both the White House and the Senate during her vetting, and that any discrepancies were already known at the time of her confirmation.
Cook is not the only public official facing such scrutiny. Martin is also leading criminal probes into Democratic Senator Adam Schiff and New York Attorney General Letitia James, with grand juries already convened in both cases.
