DOJ Opens Criminal Probe Into Fed Governor Lisa Cook Over Mortgage Allegations

The U.S. Justice Department has opened a criminal investigation into Federal Reserve Governor Lisa Cook over alleged mortgage fraud tied to multiple properties, according to several reports and people familiar with the matter.

Justice Department Investigates Fed’s Lisa Cook; Mortgage Filings Under Review

The inquiry centers on whether Cook misrepresented occupancy status or other information on mortgage applications, with subpoenas issued and grand jury activity reported in Georgia and Michigan. A third property in Massachusetts has also drawn scrutiny, according to published reports.

The probe follows criminal referrals from Federal Housing Finance Agency Director Bill Pulte, who alleged Cook listed more than one home as a primary residence to obtain favorable loan terms. Pulte’s referrals cite properties in Ann Arbor, Michigan, and Atlanta, Georgia. Cook has denied wrongdoing.

The Wall Street Journal first reported the Justice Department’s move Thursday, noting subpoenas and coordination with grand juries. Fox Business later echoed the development, citing the Department’s review of loan documents. Cook has not been charged.

Cook, appointed to the Fed board in 2022, is simultaneously fighting President Donald Trump’s attempt to remove her. In a court filing this week, her attorneys said the allegations reflect clerical contradictions, not fraud, and argued that firing her would violate statutory protections designed to preserve central-bank independence.

The case has become a flash point in Washington. Supporters of Trump frame the matter as accountability for a senior policymaker; critics warn that using contested mortgage paperwork to unseat a Senate-confirmed governor risks politicizing an institution that depends on independence to set interest rates. The Washington Post described the standoff as an unprecedented test of the Fed’s governance.

However, factual data and academic papers collected since the Fed was first created debunk the Washington Post’s unprecedented statements. Public records highlighted by Reuters show two 2021 mortgages listing different properties as a primary residence—one in Michigan and one in Georgia—as well as a separate loan tied to Massachusetts. Legal experts note that proving federal mortgage fraud typically requires showing intent to deceive and lender harm.

Whatever the outcome, the investigation arrives as the Fed weighs the path of interest rates. Any prolonged uncertainty around Cook’s status could complicate internal deliberations and the public’s perception of the central bank’s independence, though Chair Jerome Powell has not commented publicly on the probe. A hearing on Cook’s injunction request could come soon, court filings show. Officials cautioned inquiries can take months to resolve.