Last month, President Donald Trump fired Federal Reserve Governor Lisa Cook amid allegations of mortgage fraud, and the left promptly freaked out, with Rep. Maxine Waters (D-Calif.) calling for Trump’s ouster via the 25th Amendment. Now, according to a report from The Wall Street Journal, Cook’s legal problems have just become very real.
“The Justice Department has opened a criminal investigation into Federal Reserve governor Lisa Cook, issuing subpoenas as part of an inquiry into whether she submitted fraudulent information on mortgage applications, according to U.S. officials familiar with the matter,” the paper reported Thursday.
The initial scrutiny has centered on Cook’s properties in Ann Arbor, Mich., and Atlanta, with investigators using grand juries as part of the probe, the officials said.
The investigation comes on the heels of two criminal referrals from Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency, who has publicly alleged that Cook engaged in mortgage fraud. President Trump has cited those allegations in his bid to fire Cook and wrest control of a central bank that has historically remained independent.
Cook’s lawyer, Abbe Lowell, didn’t immediately respond to a request for comment. A Justice Department spokesman declined to comment.
Cook filed a lawsuit last month alleging Trump’s move to fire her was unlawful. She argued Trump “concocted” a basis for her firing to vacate a seat on the board that he can fill to “forward his agenda to undermine the independence of the Federal Reserve.”
Cook has argued in court that her firing was illegal. She points out that the Federal Reserve Act allows a president to fire a governor only “for cause,” not because of political disputes or unsubstantiated claims. Cook says she never received a fair hearing or proper notice, adding that she “has been deprived of her Fifth Amendment right to due process, and of her right to process under the Federal Reserve Act.”
Despite her claims, recent reports have shown that Cook has indeed listed multiple residences she owns as her primary residence, a move that property owners commonly make to obtain better mortgage terms. Both Sen. Adam Schiff (D-Calif.) and New York Attorney General Letitia James are facing similar accusations.
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“Felony convictions of mortgage fraud are relatively rare. In 2024, there were 38 federal mortgage fraud offenders who received an average prison sentence of 14 months, according to the U.S. Sentencing Commission,” the Wall Street Journal notes. “A 2023 report from the Federal Reserve Bank of Philadelphia found that one-third of single-family home investors misrepresent their occupancy status on their mortgage applications.”
But that’s not really the point here, is it? Cook wants due process, and she’s getting it. Whether the DOJ decides to prosecute her or not, as a former Federal Reserve governor, she should have known better than to claim multiple homes as her primary residence. Her willingness to do so raises serious questions about her judgment, which makes her unfit for a position that demands integrity and accountability.
Cook’s criminal investigation shows exactly why we can’t trust the establishment elite. PJ Media delivers the hard-hitting conservative journalism that exposes these fraudsters while legacy media stays silent. Support our mission — join PJ Media VIP with the promo code FIGHT for 60% off and get exclusive content plus ad-free browsing. Support fearless conservative journalism that puts America First!
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