The U.S. Department of Justice has launched a criminal investigation into former Federal Reserve Governor Lisa Cook. The move follows a referral from Federal Housing Finance Agency (FHFA) Director Bill Pulte.
Special Attorney Ed Martin is overseeing the probe. He is working alongside U.S. attorneys in Georgia and Michigan. Martin was appointed by Attorney General Pam Bondi. He is also handling other mortgage fraud cases involving public officials.
According to a source familiar with the matter, grand jury subpoenas have already been issued in both states.
Pulte, a Trump appointee, first referred Cook to the DOJ in early August. He accused her of submitting false documents and misrepresenting her primary residence to secure better mortgage terms.
The allegations involve properties in Georgia and Michigan. A second referral submitted on August 28 added a third property in Massachusetts.
President Donald Trump removed Cook from her role as Fed governor on August 25. The action came in response to the mortgage fraud allegations.
Cook, who was appointed by President Joe Biden in 2022, has filed a lawsuit seeking to be reinstated. In her court filings, she admitted listing all three properties on federal disclosure forms during the vetting process. She argued that any inconsistencies were known during her confirmation and should not justify her firing now.
Cook’s attorney, Abbe Lowell, claimed the investigation is politically driven. “The questions over how Governor Cook described her properties from time to time… are not fraud,” Lowell said. He accused the DOJ of launching another “politicized investigation.”
The DOJ has refused to comment on the case. That is standard practice for ongoing investigations. However, documents reviewed by Reuters confirm that the probe is active. Grand juries have been convened.
Cook is now the third public official facing a federal mortgage fraud probe. Ed Martin is also investigating New York Attorney General Letitia James and California Senator Adam Schiff.
The case has raised concerns over the Federal Reserve’s independence. Some warn that removing a Fed governor in this manner opens the door to political interference.
Trump has repeatedly called for the Fed to cut interest rates. He has criticized Fed Chair Jerome Powell for failing to do more to fight inflation and boost growth.
Cook has denied committing any fraud. A press conference planned by Pulte for Thursday was canceled “out of respect for the process.”