(NewsNation) — The Justice Department has launched a criminal probe into Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, a U.S. official told NewsNation.
According to the official, mortgage lenders and banks have been issued subpoenas as part of the investigation into allegations that Cook claimed two primary residences, and a grand jury in Atlanta is investigating those allegations.
Cook’s attorney, Abbe Lowell, blasted reports of the investigation, calling it “politicized.”
“This Justice Department – perhaps the most politicized in American history – will do whatever President Trump demands. He wants cover, and they are providing it,” Abbe said in a statement. “The questions over how Governor Cook described her properties from time to time, which we have started to address in the pending case and will continue to do so, are not fraud, but it takes nothing for this DOJ to undertake a new politicized investigation, and they appear to have just done it again.”
The Justice Department refused to comment on the investigation.
Cook was accused of mortgage fraud by Bill Pulte, head of the Federal Housing Finance Agency and a Trump appointee. Cook’s legal team has pushed back on those claims, writing in a court filing that “the mortgage allegations against her are pretextual in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Fed.”
This investigation comes just days after Cook filed a lawsuit against the Trump administration in response to her firing. Cook has asked a federal judge to block President Donald Trump’s decision. While denying any wrongdoing, Cook has said she is willing to answer any legitimate questions.
The White House has doubled down on Trump’s decision.
“You have these mortgage receipts very clearly shown to the president, and he has the cause that he needs to fire this individual,” said White House press secretary Karoline Leavitt. “He laid it out in a letter that he provided to her and to the public as well, and so we’ll continue to fight this battle.”
Trump and the Federal Reserve have been increasingly at odds over interest rates. Federal Reserve chair Jerome Powell has insisted on keeping interest rates steady to combat inflation, while Trump has demanded they be lowered.