US Justice Department launches fraud probe into Fed Gov Lisa Cook: Report

US Federal Reserve Governor Lisa Cook is the subject of a criminal mortgage fraud investigation, according to the US Department of Justice.

According to a source with knowledge of the situation, the Justice Department also issued grand jury subpoenas out of both Georgia and Michigan on Thursday.

According to Reuters, Ed Martin, who was hired by Attorney General Pam Bondi as a special assistant US attorney to assist with investigations involving public officials, and the US Attorneys’ Offices in the Northern District of Georgia and the Eastern District of Michigan, is leading the investigation.

Pulte, who was appointed by US President Donald Trump, claimed Cook made up the allegations by listing multiple properties as her primary residence when she applied for mortgages, which might lead to lower interest rates. Properties are owned by Cook in Massachusetts, Georgia, and Michigan.

Due to Pulte’s allegations of mortgage fraud against her, Trump fired Cook, which led her to file a lawsuit challenging his decision to fire her.

The Justice Department was working to find new arguments to support Trump’s overreach in firing the Fed governor, according to Cook’s attorney, Abbe Lowell, a well-known lawyer in Washington.

He requests cover, which they offer. We have started addressing Governor Cook’s properties in the pending case and will continue to do so, but it is not necessary for this DOJ to launch a new politicized investigation, Lowell said. “They appear to have just done it again.

The case has implications for the Fed’s ability to regulate interest rates without bending political wills, which are widely believed to be essential to any central bank’s ability to control inflation.

Trump has criticized Fed Chair Jerome Powell for directing monetary policy, calling on the US central bank to immediately and aggressively cut rates.

In one of her most recent legal filings, Cook claimed that in order to be appointed to the Fed in 2022, she listed mortgages on three properties on forms submitted to the White House and US Senate. Any contradictions were discovered when she was confirmed, so Trump cannot now fire her.

Cook is the third public official to face charges of mortgage fraud.