The United States Department of Justice (DoJ) has launched a criminal investigation into Federal Reserve Governor Lisa Cook, following allegations of mortgage fraud tied to multiple properties.
According to Reuters, citing court documents and sources familiar with the matter, the probe focuses on claims that Cook misrepresented mortgage applications by listing more than one property as her primary residence.
The properties under scrutiny are located in Michigan, Georgia, and Massachusetts.
The investigation stems from a referral made by Federal Housing Finance Agency (FHFA) Director Bill Pulte, who was appointed during Donald Trump’s presidency.
Pulte accused Cook of securing favorable mortgage rates by claiming multiple homes as primary residences an act that, if proven, constitutes fraud.
Attorney General Pam Bondi has assigned Ed Martin as a special assistant U.S. attorney to oversee the case.
Martin, who also heads the controversial “Weaponisation Working Group,” is working alongside U.S. Attorneys in the Northern District of Georgia and the Eastern District of Michigan.
The allegations have triggered a political and legal firestorm. Trump previously terminated Cook’s appointment to the Federal Reserve over the mortgage controversy, leading her to file a lawsuit challenging his decision.
The case is expected to make its way to the U.S. Supreme Court, raising significant questions about the independence of the Federal Reserve.
At the core of the dispute is whether a president can remove a sitting Fed governor over financial disclosures that were already vetted during Senate confirmation.
Cook has argued in her legal filings that she disclosed all mortgage information to both the White House and the Senate in 2022, during her nomination process.
She insists that any inconsistencies were already known and cannot now be used as grounds for her dismissal.
The stakes extend far beyond Cook’s personal defense. If the Supreme Court ultimately sides with Trump, it could weaken the Federal Reserve’s ability to operate independently of political pressure.
Trump has repeatedly criticized the Fed for not cutting interest rates aggressively, even berating Chair Jerome Powell for what he calls failed monetary policy.
Cook is not alone in facing scrutiny. Ed Martin is also pursuing probes into Democratic Senator Adam Schiff and New York Attorney General Letitia “Tish” James, with grand juries already convened in those cases.
Cook thus becomes the third high-profile public official to be investigated for alleged mortgage fraud under Martin’s oversight.
The outcome of this probe could reshape both U.S. monetary policy and the delicate balance of power between political leaders and the nation’s central bank.
For now, Cook continues to defend her record, insisting that her disclosures were transparent and that attempts to remove her are politically motivated.
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