DOJ opens criminal probe targeting Fed Governor Lisa Cook as Trump weaponizes investigations

Department of Justice launched a criminal investigation into Federal Reserve Governor Lisa Cook in Sep. 2025 (announced Sep. 4, 2025) over mortgage fraud allegations. DOJ issued subpoenas and utilized grand juries in 🍑Georgia and 🚗Michigan as part of the investigation.

Cook allegedly misrepresented property usage on mortgage applications for three properties purchased in 2021: a Cambridge, 🏛️Massachusetts condominium (refinanced Apr. 2021), an Ann Arbor, 🚗Michigan home (Jun. 2021), and an Atlanta, 🍑Georgia luxury condominium (Jul. 2021). Allegations claim she designated multiple properties as "primary residence" to secure better loan terms.

Federal Housing Finance Agency director BPBill Pulte made the initial criminal referral to DOJ on Aug. 15, 2025, which Trump cited when attempting to fire Cook on Aug. 25, 2025. This marked the first time a president tried to remove a Fed governor using criminal allegations in the Fed's 112-year history.

Evidence contradicting fraud claims emerged, including loan documents showing Cook designated the Atlanta property as a "vacation home" in May 2021 loan estimates, and no primary residence tax exemptions were claimed on the properties.

Federal Judge Jia Cobb issued a preliminary injunction on Sep. 9, 2025, blocking Cook's removal, ruling that "for cause" removal under the Federal Reserve Act extends only to conduct while in office, not pre-appointment behavior. The court found Trump likely violated Cook's due process rights.

The 🏛️DC Circuit Court of Appeals upheld the injunction on Sep. 15, 2025, rejecting Trump's emergency appeal to remove Cook before the Federal Open Market Committee meeting. The Supreme Court scheduled oral arguments for Jan. 21, 2026.

Constitutional experts warn that using criminal investigations to pressure Fed officials threatens central bank independence. The Federal Reserve Act requires "for cause" removal, limiting presidential power since the Fed's creation in 1913.