The U.S. Justice Department has opened a criminal investigation into Federal Reserve Governor Lisa Cook. The probe is focused on whether she misrepresented property information when applying for mortgages.
According to documents reviewed by investigators, the inquiry centers on the question of whether Cook listed more than one property as a “primary residence.” In mortgage applications, identifying a property as a main home rather than a vacation or investment property can lead to lower interest rates. Cook is reported to own homes in Michigan, Georgia, and Massachusetts, which are now part of the review.
Grand jury subpoenas have been issued in both Georgia and Michigan. The investigation is being led by special assistant U.S. attorney Ed Martin, who was appointed by Attorney General Pam Bondi, alongside prosecutors in the Northern District of Georgia and Eastern District of Michigan.
This development is unusual because criminal investigations of high-ranking monetary policymakers are extremely rare. The matter has drawn attention not only because of the official involved but also due to its potential connection to wider debates over central bank independence.
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Allegations of Multiple Residences Spark the Case
The investigation follows a referral by Bill Pulte, the Trump-appointed Director of the Federal Housing Finance Agency. Pulte accused Cook of committing fraud by marking more than one property as a primary residence. The referral alleged that such filings could have been used to gain financial benefits when securing mortgage loans.
The controversy has not stayed confined to paperwork. Former President Donald Trump terminated Cook after the referral, an action that sparked immediate legal battles. In court filings, Cook argued that she had disclosed details of her mortgages during the White House and Senate vetting process in 2022. According to her filings, any inconsistencies were known at the time and were not deemed disqualifying.
Cook’s attorney, Abbe Lowell, sharply criticized the new criminal probe, calling it politically motivated. Lowell said that the way Cook described her properties might raise questions but does not amount to criminal fraud. He also suggested that the Justice Department was being used to provide backing for Trump’s decision to remove her from the Fed Board.
The ongoing lawsuit over Cook’s firing has drawn national attention. At its heart lies the question of whether a president can dismiss a Federal Reserve governor in this manner, and whether ongoing legal disputes can be used as justification.
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Meanwhile, Trump has continued to pressure the central bank, demanding aggressive rate cuts and berating Fed Chair Jerome Powell over his handling of monetary policy.
Wider Investigations Into Public Officials
The probe into Lisa Cook is not isolated. The same prosecutor, Ed Martin, is also managing other high-profile investigations into public officials. This includes separate grand jury proceedings looking into Senator Adam Schiff and New York Attorney General Letitia “Tish” James.
These overlapping inquiries have become part of a broader initiative to investigate allegations of corruption among political and financial leaders. Martin also plays a role in the so-called “Weaponization Working Group” and has been serving as pardon attorney.
For now, the spotlight remains firmly on the investigation into Cook. The unusual combination of mortgage documents, grand juries in multiple states, and the removal of a top policymaker has created a rare situation where questions about housing loans intersect directly with the independence of U.S. monetary policy.
The case continues to unfold, with subpoenas now issued and defense attorneys preparing further responses. The criminal probe adds yet another layer of complexity to a dispute that had already become a flashpoint in the ongoing clash between political power and financial institutions.