The Justice Department is investigating Federal Reserve governor Lisa Cook over allegations of fraudulent mortgage applications. The probe began after Federal Housing Finance Agency Director Bill Pulte claimed Cook listed two different properties as her “primary residence” within weeks of purchase.
Last week, President Donald Trump fired Cook, the first-ever removal of a Fed governor, citing these allegations. Cook has challenged the dismissal in court, arguing it threatens the independence of the Federal Reserve and has asked to remain in her post during litigation.
Cook’s lawyer insists the property filings do not constitute fraud and called the DOJ politically motivated.
The case unfolds amid Trump’s broader pressure campaign against the Fed, as he criticizes the central bank and Chair Jerome Powell for not cutting interest rates. The Fed is expected to consider a rate cut at its September 16–17 meeting.
Mena, B. (2025, September 4). Justice Department launches criminal investigation into Fed’s Lisa Cook for mortgage fraud. CNN. https://edition.cnn.com/2025/09/04/business/justice-department-launches-investigation-lisa-cook