Justice Department opens investigation into Lisa Cook for alleged fraud in mortgage documents

The Justice Department launched an investigation into Federal Reserve Governor Lisa Cook for alleged fraud on mortgage applications. The inquiry follows allegations that Cook may have falsified bank documents to obtain favorable financial terms, people close to the case said.

Origin of the investigation

The case began when Bill Pulte, director of the Federal Housing Finance Agency (FHA), said his office had found irregularities in documents submitted by Cook. Pulte referred the information to the Department of Justice, which resulted in the opening of the criminal investigation. Subsequently, President Donald Trump announced his intention to remove Cook from the Federal Reserve.

Cook's defense

Cook responded in a statement that he would not be pressured to resign over comments made on social media but noted that he would take seriously any questions about his financial history and would gather the necessary information. He later sued the administration over the attempted ouster, arguing that it was an illegal effort to undermine the Fed's independence.

His lawyer, Abbe D. Lowell, argued that the investigation reflects an attempt by the Administration to invent justifications for its actions and described the Justice Department as one of the most politicized institutions in recent history. He added that questions about how Cook had reported his holdings at times did not constitute fraud and that a new politically motivated inquiry should not be opened.