Fed governor Cook's lawyers call mortgage fraud allegations "baseless" as Trump seeks her firing

Federal Reserve Governor Lisa Cook's attorney ALAbbe Lowell sent a detailed defense to Attorney General Pam Bondi on Nov. 17, 2025, calling criminal referrals against Cook baseless and saying they fail on even the most cursory look at the facts. Cook has denied wrongdoing since FHFA Director WPWilliam Pulte first made fraud accusations in Aug. 2025. The Supreme Court blocked Trump's firing attempt in Oct. 2025 and will hear arguments in the case in Jan. 2026.

President Donald Trump attempted to fire Cook in Aug. 2025 over mortgage fraud allegations, marking the first time in the Federal Reserve's 112-year history that a president has sought to remove a Fed governor. Trump has repeatedly attacked the Fed for not cutting its key interest rate quickly enough. If Cook is ultimately removed, it would give Trump the opportunity to appoint a fourth member to the Fed's seven-member board, securing a majority.

The criminal referrals concern mortgage applications Cook filed for three properties in 🚗Michigan, 🍑Georgia, and 🏛️Massachusetts. Lowell's letter said the allegations rest on one stray reference in a 2021 mortgage document that was plainly innocuous in light of several other truthful and more specific disclosures about the homes she purchased. The letter argued there is no fraud, no intent to deceive, nothing whatsoever criminal or remotely a basis to allege mortgage fraud.

FHFA Director Bill Pulte has made similar mortgage fraud allegations against other Trump political enemies, including 🗽New York Attorney General Letitia James, 🌴California Sen. Adam Schiff, and California Rep. Eric Swalwell. Lowell accused Pulte of selectively targeting Trump's political enemies while ignoring similar allegations against Republican officials. James was charged with bank fraud after Pulte's referral to the Justice Department and has pleaded not guilty, seeking dismissal on grounds including vindictive and selective prosecution.

The White House ousted FHFA acting Inspector General JAJoe Allen right after he tried to provide key discovery material to federal prosecutors in the Eastern District of 🏛️Virginia pursuing the indictment against Letitia James. Lowell cited this conduct as undercutting Pulte's criminal referrals concerning Cook. The letter also noted Pulte's recent dismissal of several internal watchdogs at Fannie Mae, one of the mortgage-finance giants under FHFA control.

Cook's case is being handled in part by Ed Martin, the Justice Department's pardon attorney, whom Bondi named as a special assistant US attorney to assist with mortgage fraud probes into public figures. The case is still being investigated, and no criminal charges have been brought. The Department of Justice does not comment on current or prospective litigation, including matters that may be an investigation, according to a spokesperson.

Cook is the first Black woman to serve on the Federal Reserve Board. She was appointed by President Biden and confirmed by the Senate. Federal Reserve governors serve 14-year terms and can only be removed for cause, not policy disagreements. Trump's attempted removal challenges this independence by using criminal allegations from a political appointee who has targeted other Democrats with similar claims.