DOJ opens mortgage-fraud probe into Lisa Cook, source says
The Ministry of Justice began examining the allegations of fraud on the mortgage against Lisa Cook, the ruler of the Federal Reserve, who challenges the Trump administration efforts to remove from its job in a move that it says is designed to erode the independence of the Central Bank.
Investigators issued call notes as part of the Cook investigation, which led to a criminal referral from the country’s higher housing organizations, according to a person familiar with the issue that was not allowed to discuss the investigation and spoke on the condition of anonymity to the Associated Press.
A spokesman for the Ministry of Justice refused to comment on the investigation, which was reported by the Wall Street Journal.
“It is expected and acknowledging the defects in the illegal shooting challenge of the Cook Cook, the administration is scrambling to create new justifications for its transcendence. This Ministry of Justice – perhaps the most politicized in American history – will do everything that President Trump requires,” Cook’s lawyer, Abi David Lowle, said in a statement.
The investigation news comes amid a high -risk legal battle over President Donald Trump’s announcement last month that he was calling Cook, a measure that it was being taken so that he could control a central bank that usually protects from political pressure and instructing decisions about raising interest rates or decline.
Trump moved to Fire Cook on August 25 after one of those appointed to him claimed that she had committed a mortgage fraud related to two ownerships in 2021, before joining the Federal Reserve.
Bill Bouti, who made criminal referral as director of the Federal Housing Agency, confirmed that Cook had claimed two primary housing, in Ann Arbur, Michigan, and Atlanta, in 2021 to obtain better mortgage conditions. Mortgage rates are often higher in the second homes or those purchased for rent.
The Ministry of Justice investigation is focused on these two properties, according to the person familiar with the matter. It is coordinated with the offices of American lawyers by Ed Martin, director of the weapons working group of the Ministry of Justice, which is also following investigations into mortgage fraud in Trump’s opponents, including Senator Adam Chef from California and Public Prosecutor in New York Letia James, both Democrats. Both of them strongly denied any violations.
Bolt evaded the questions in an interview with CNBC on Thursday about whether he was similarly scrutinized by Ken Buckston, the Texas Prosecutor who is friendly with Trump and runs for the Senate in the state preliminary elections. Paxston has brought out real estate loans on three properties that were all determined as its basic residence. He said he would not comment on any specific situation that has not been announced.
Cook’s lawyers also insisted that she did not participate in fraud.
Luel said: “The questions about how the ruler described Cook its characteristics from time to time, which we started to address in the outstanding case and we will continue to do so, not a fraud, but it does not require anything until the Ministry of Justice conducts a new political investigation, and it seems that they have done this again.”
Separately, on Thursday, the Ministry of Justice urged a federal judge in Washington to allow the immediate removal of Cook while fighting to keep its job, and Cook’s claim that he was trying to shoot her so that he could control the Federal Reserve.
Cook lawyers argued that the shooting was illegal because the presidents could only shoot on the conservatives “for the reason”, which usually means incompetence, neglecting duty or summary while they were in office. They also said that she had a hearing and an opportunity to respond to the charges before being expelled, but it was also not presented. Lawyers said in the court file that Cook had never committed fraud on the mortgage.
The Ministry of Justice says that the president has a discretionary authority to shoot Cook for the case and that his decisions cannot be reviewed by the courts.
The issue can become a turning point for approximately 112 -year -old Federal Reserve, which is designed by congress to be isolated from the daily political influence. Economists prefer independent central banks because they can do unimaginable things, such as raising interest rates to combat inflation more easily than elected officials.
Trump has repeatedly attacked Federal Reserve Chairman Jerome Powell and other members of the Federal Reserve Interest rate committee for not reducing the short -term interest rate that they control more quickly.
Many economists are concerned that if the Federal Reserve falls under the control of the White House, this will maintain the main interest rate less than what is justified by the economic basics to meet Trump’s demands for the cheapest borrowing.
2025-09-04 23:19:00
