The U.S. Department of Justice has launched a criminal investigation into Federal Reserve Governor Lisa Cook related to allegations of mortgage fraud, issuing grand jury subpoenas in Georgia and Michigan, according to court documents and sources familiar with the matter.
The probe follows a referral from Federal Housing Finance Agency Director Bill Pulte. Ed Martin, appointed by Attorney General Pam Bondi as a special assistant U.S. attorney to assist with mortgage fraud cases involving public officials, is leading the investigation alongside the U.S. Attorneys’ offices for the Northern District of Georgia and the Eastern District of Michigan.
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Pulte has alleged that Cook misrepresented her primary residence on multiple mortgage applications, potentially to obtain lower interest rates. Cook owns properties in Michigan, Georgia, and Massachusetts. She has denied any wrongdoing.
In response to the allegations, former President Donald Trump attempted to terminate Cook, prompting her to file a lawsuit challenging his efforts to remove her from the Federal Reserve. Cook’s legal filings state that any discrepancies in her mortgage disclosures were already known during the vetting and confirmation process in 2022, and she contends they do not justify her removal.
Observers note that developments involving a Federal Reserve governor carry potential implications for the central bank’s independence and its ability to set interest rate policy without political interference. Trump has previously called for aggressive rate cuts, criticizing Fed Chair Jerome Powell’s management of monetary policy.
Cook is the third public official currently facing criminal mortgage fraud allegations under investigation. Martin, who also oversees the Justice Department’s Weaponization Working Group and serves as pardon attorney, is involved in ongoing investigations of other officials, including U.S. Sen. Adam Schiff and New York Attorney General Letitia James. Grand juries have been convened in those cases, which predate Martin’s appointment as special assistant U.S. attorney.
