DOJ Launches Criminal Mortgage Fraud Probe into Federal Reserve Governor Lisa Cook Amid Lawsuit Against President Trump
Federal Reserve Governor Lisa Cook faces a Justice Department criminal mortgage fraud probe, stemming from FHFA Director Bill Pulte's allegations, while suing President Trump over her termination.
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Overview
- The US Department of Justice has launched a criminal mortgage fraud probe into Federal Reserve Governor Lisa Cook, following accusations from FHFA Director Bill Pulte.
- Pulte alleges Governor Cook falsely listed multiple properties as her primary residence, providing video evidence to support these claims, prompting the DOJ investigation.
- As part of the ongoing criminal inquiry, the Justice Department has issued subpoenas to gather further information regarding the alleged mortgage fraud by Governor Cook.
- Governor Cook has filed a lawsuit against President Trump, challenging her termination and asserting that her dismissal was unlawful and politically motivated.
- Both parties are engaged in a legal dispute, with Cook arguing her firing lacked cause, while her termination was linked to the ongoing mortgage fraud allegations.
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Analysis
Center-leaning sources frame the Justice Department's investigation into Lisa Cook as potentially politically motivated. They emphasize the broader struggle for the Federal Reserve's independence and highlight connections to other investigations involving "perceived Trump adversaries," suggesting a pattern of selective targeting and a politicized approach to legal actions.
"The Justice Department has taken additional steps in its investigation into mortgage fraud allegations against Federal Reserve governor Lisa Cook, a person familiar with the matter told NBC News."
NBC News"The case could become a turning point for the 112-year old Federal Reserve, which was designed by Congress to be insulated from day-to-day political influence."
Associated PressArticles (10)
FAQ
Lisa Cook has been accused of falsifying mortgage documents by claiming multiple properties as her primary residence, including homes in Michigan and Georgia, while also listing a third property in Massachusetts as a second home.
Lisa Cook has filed a lawsuit against President Donald Trump, challenging her termination as unlawful and politically motivated, arguing that the Federal Reserve Act requires removal to be for cause and disputing the grounds for her dismissal.
The U.S. Department of Justice has opened a criminal probe into the mortgage fraud allegations against Lisa Cook and issued subpoenas for further information as part of the investigation.
Prior to joining the Federal Reserve Board, Lisa Cook was a professor of economics and international relations at Michigan State University, served on the Council of Economic Advisers under President Obama, and held roles in the Treasury Department and academic advisory positions.
Lisa Cook is the first Black woman to serve on the Federal Reserve Board of Governors, making history when she was appointed in 2022 after a narrow Senate confirmation vote.
History
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