US Justice Department ramps up probe into Fed governor Lisa Cook

ISTANBUL

The US Justice Department has intensified its investigation into mortgage fraud allegations against Federal Reserve Governor Lisa Cook, NBC News reported Thursday.

Last month, President Donald Trump announced the removal of Cook from her position “effective immediately,” citing allegations of mortgage fraud.

Cook, who was nominated to the Fed’s Board of Governors in 2022 by then President Joe Biden and sworn in the same year, has denied any wrongdoing and said she has “no intention of being bullied into stepping down.” She has since filed a lawsuit against Trump.

NBC, citing a person familiar with the matter, said subpoenas were recently issued regarding Cook’s properties in Ann Arbor, Michigan and Atlanta, Georgia.

Cook’s legal team argued in court filings this week that questions over her property disclosures do not amount to fraud, the report said.

Her attorney, Abbe Lowell, accused the Justice Department of launching “a new politicized investigation,” saying the case reflected partisan targeting.

The allegations originated from Bill Pulte, the director of the Federal Housing Finance Agency under Trump, who claimed Cook committed fraud before and during her tenure at the Fed. He said he made two referrals to the Justice Department.

In August, Justice Department official Ed Martin confirmed that an investigation was underway and urged Federal Reserve Chairman Jerome Powell to remove Cook, though Powell does not have the authority to dismiss Fed governors.