Justice Department Starts Investigation into Mortgage Fraud Involving Lisa Cook

DOJ Investigates Mortgage Fraud Involving Federal Reserve Governor

The Department of Justice (DOJ) has initiated an inquiry into allegations of mortgage fraud linked to Federal Reserve Governor Lisa Cook, who was previously shot.

Special Attorney Ed Martin is reportedly collaborating with U.S. attorneys in both Georgia and Michigan to investigate claims that civil servants were involved in mortgage fraud. This information comes from a reliable source who has knowledge of the situation.

The Wall Street Journal was the first to report on the investigation.

Bill Prute, the director of the Federal Housing Finance Agency (FHFA), initially referred the matter to the DOJ in August. He accused Cook of providing false information on bank documents and property records to secure better loan terms, impacting properties identified as major residences in Michigan and Georgia. Prute also made a reference regarding a third property in Massachusetts on August 28th.

In light of the complaint filed on August 25th, former President Donald Trump removed Cook from her position and suggested that she pursue legal action. Cook was appointed by President Joe Biden in 2022.

Trump’s administration had intended for Prute to lead the FHFA. However, a recent meeting scheduled for Thursday was canceled in what was described as a respectful move.

Abbe Lowell, Cook’s attorney, stated in a recent announcement that there are efforts to prevent Trump from terminating her. He emphasized that the questions surrounding Governor Cook’s property dealings are not fraud-related, asserting that this DOJ inquiry appears politically motivated.

Cook has denied any wrongdoing concerning the allegations against her.

Martin is leading this mortgage fraud probe, which also extends to implications involving Democratic New York Attorney General Letitia James and Democratic California Senator Adam Schiff.