Washington, September 5 (HS):
The U.S. Department of Justice has opened a criminal investigation into Federal Reserve Governor Lisa D. Cook on allegations of fraud. It remains unclear which U.S. Attorney’s Offices are spearheading the inquiry, though court documents indicate that subpoenas have already been issued. Given that Cook previously disclosed ownership of homes in Georgia, Massachusetts, and Michigan, investigators are expected to involve offices from these jurisdictions.
According to The New York Times, the probe stems from an earlier review led by the Federal Housing Finance Agency Director Bill Pulte’s office. That review reportedly found that Cook manipulated bank documents to secure favorable terms in a financial transaction, after which the case was referred to the Justice Department for potential criminal proceedings.
The development follows former President Donald Trump’s earlier announcement that he intended to remove Cook from the Federal Reserve Board. Recently, reports suggested that Cook had in fact been dismissed, prompting her to file a lawsuit against the administration.
Her attorneys argue that her ouster represents an unlawful attempt to undermine the Fed’s longstanding tradition of independence. In a statement issued Thursday, attorney Abbe D. Lowell, representing Cook, accused the Trump administration of “manufacturing new justifications for its overreach,” adding that the Department of Justice has become “perhaps the most politicized in U.S. history.”
A DOJ spokesperson declined to comment on the matter.
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Hindusthan Samachar / Jun Sarkar
