The Justice Department has opened a criminal investigation into former Federal Reserve Governor Lisa Cook, who was fired last week by President Donald Trump following allegations of mortgage fraud.
Cook is suing to return to the Fed’s seven-member Board of Governors, which sets key interest rates on loans, mortgages, and credit cards. Her dismissal came after Federal Housing Finance Agency Director William Pulte referred her to the DOJ, alleging she claimed two primary residences to obtain favorable loan terms.
Prosecutors are now examining whether Cook submitted fraudulent information on mortgage applications for properties in Ann Arbor, Mich., and Atlanta. The Wall Street Journal reported that grand juries have been convened to consider possible charges.
Trump has pointed to Pulte’s referral as justification for her removal. Cook, appointed in 2022 by President Joe Biden, had limited Trump’s ability to gain control of the Fed board.
Cook’s referral marks the third time in recent months that Pulte, a close Trump ally, has sought criminal investigations of Democratic officials or their appointees. He has previously filed referrals against New York Attorney General Letitia James, who prosecuted Trump in his real estate case, and Sen. Adam Schiff (D-Calif.), a leading member of the Jan. 6 committee.
