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Trump, Donald

Federal Reserve Governor Lisa Cook Faces Mortgage Fraud Probe and Grand Jury Subpoenas

Strategic Insights

— 2 min read

The United States Department of Justice has launched a criminal investigation into Federal Reserve Governor Lisa Cook over mortgage fraud allegations. The investigation, led by Special Assistant US Attorney Ed Martin, is being conducted in conjunction with the US Attorneys' Offices in the Northern District of Georgia and the Eastern District of Michigan. The probe follows a criminal referral from Federal Housing Finance Agency Director Bill Pulte, who accused Cook of listing multiple properties as her primary residence when applying for mortgages.

Key Takeaways:

  • The investigation is led by Special Assistant US Attorney Ed Martin, who was appointed by Attorney General Pam Bondi to assist with mortgage fraud investigations involving public officials.
  • The probe is being conducted in conjunction with the US Attorneys' Offices in the Northern District of Georgia and the Eastern District of Michigan.
  • Federal Housing Finance Agency Director Bill Pulte made a criminal referral against Cook, accusing her of listing multiple properties as her primary residence when applying for mortgages.
  • Cook owns properties in Michigan, Georgia, and Massachusetts.
  • Cook has denied any wrongdoing and has filed a lawsuit against US President Donald Trump, challenging his effort to remove her from the Fed.
  • The case has ramifications for the Fed's ability to set interest rate policy without regard to politicians' wishes, widely seen as critical to any central bank's ability to keep inflation under control.
  • Trump has demanded that the US central bank cut rates immediately and aggressively, and Cook's lawsuit will likely end up before the US Supreme Court.
  • Cook is the third public official to be targeted in a criminal investigation over mortgage fraud allegations, following Democratic US Senator Adam Schiff and New York Attorney General Letitia "Tish" James.

Statistics:

  • The investigation is being conducted in conjunction with the US Attorneys' Offices in the Northern District of Georgia and the Eastern District of Michigan.
  • 3 public officials are being investigated for mortgage fraud allegations: Lisa Cook, Adam Schiff, and Letitia "Tish" James.
  • 2 grand juries have been convened in the cases involving Schiff and James.
  • 1 grand jury subpoena has been issued in the case involving Cook.
  • Cook has filed 1 lawsuit against US President Donald Trump, challenging his effort to remove her from the Fed.

Sources:

  • Reuters
  • Al Jazeera
  • "Trump orders removal of Fed governor Cook over mortgage fraud claims" (August 26, 2025)
  • "Federal Reserve governor Lisa Cook sues Trump for his attempt to fire her" (August 28, 2025)
  • "Will Trump's latest attack on the Fed erode central banks' independence?" (August 26, 2025)

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