DOJ Opens Grand Jury Criminal Investigation Fed Governor Lisa Cook Over Mortgage Fraud Allegations

The Department of Justice has opened a criminal investigation into Federal Reserve governor Lisa Cook – and has issued multiple subpoenas as part of the inquiry into whether she committed mortgage fraud, according to the Wall Street Journal, citing ‘officials familiar with the matter.’

The probe – for which a grand jury has been assembled, will begin by looking at Cook’s properties in Ann Arbor, Michigan and Atlanta. It comes on the heels of two criminal investigations from Federal Housing Finance Agency director Bill Pulte, who has been dropping receipts for weeks with evidence that Cook committed fraud – including claiming two properties as her “primary residence” – as well as claiming that a rented out third property was her ‘second home’ – all things that would qualify her for better rates and tax treatment. 

Pulte accused Cook of misleading banks on multiple mortgage applications to receive favorable lending terms, such as lower interest rates, typically given to a buyer who intends to occupy the home they purchase. 

A judge is considering Cook’s request for an emergency order stopping her from being removed from the Fed board while the case proceeds. The Fed’s next meeting is set to begin Sept. 16. -WSJ

Last Thursday, Cook filed a lawsuit against the Trump administration after President Donald Trump fired her that Monday ’for cause.’ Among the excuses contained in the lawsuit for alleged mortgage fraud was a possible clerical error. 

Except, Cook described herself in her 2023 nomination hearing as having “significant experience in banking and finance, as is evidenced by my service on the board of directors of the Federal Reserve Bank of Chicago and of a Community Development Financial Institution in Michigan, in addition to my employment at an investment bank and a large commercial bank.” 

What’s more, the Federal Reserve Act allows the president to fire Fed governors ‘for cause’ – which the Trump administration claims applies. In a Tuesday court filing, Cook’s lawyers said she “did not ever commit mortgage fraud.”

Pulte shot down any notion that the fed wasn’t political in a Thursday appearance on CNBC, saying “I don’t believe for the last 4 years that the Fed has been independent.” 

.@pulte: “I don’t believe for the last 4 years that the Fed has been independent…

You’ve got Lisa Cook who’s being represented by Norm Eisen. Norm Eisen is the guy who tried to TAKE DOWN Trump, failed at it, but led the first impeachment… This is a raging Democrat.” pic.twitter.com/7yZFoJlBeC

— Trump War Room (@TrumpWarRoom) September 4, 2025

According to the report, the DOJ investigation involves Ed Martin, a top DOJ official who AG Pam Bondi designated to investigate mortgage fraud among public officials.