Fraud Allegations Target Fed Governor Lisa Cook Spark Controversy

Tue Nov 18 2025 02:52:41 GMT+0200 (Eastern European Standard Time)

In a scandal involving mortgage fraud accusations against Federal Reserve Governor Lisa Cook, her attorneys vehemently denied the claims, raising questions about partisan motivations.

Federal Reserve Governor Lisa Cook faces accusations of mortgage fraud which the Trump administration cited to attempt her removal. Her attorney argues the allegations are unfounded and politically motivated. The Supreme Court has allowed Cook to remain in her position while the case moves forward.

WASHINGTON (AP) — In a letter addressed to Attorney General Pam Biondi, attorneys representing Federal Reserve Governor Lisa Cook are contesting claims made by a Trump administration official alleging she committed mortgage fraud. This accusation has been used by President Donald Trump to justify efforts to remove Cook, marking a significant move as it represents the first instance in the central bank's more than 112-year history where a president has sought to oust a Fed governor.

The latest developments came after Cook's attorney, Abbe Lowell, stated that the allegations stem from a 'stray reference' in a 2021 mortgage document, which is considered 'plainly innocuous' when viewed alongside other honest disclosures made regarding her property acquisitions.

Lowell’s correspondence reveals that as Trump has been persistently critical of the Fed's monetary policy, the implications of Cook's potential removal could allow the president to appoint a fourth member to the Fed's governing board, potentially influencing policy directions.

Last month, the Supreme Court ruled that Cook could continue serving in her role while contesting her case in court; it is expected to hear the arguments in January.

Cook’s legal team argues the accusations, made public by Bill Pulte, the director of the Federal Housing Finance Agency, lack merit. Pulte has made similar allegations against various Democratic figures, including New York Attorney General Letitia James and California Senator Adam Schiff.

However, Lowell asserts that Cook's declarations regarding her residences have been consistent and true. With respect to Cook's primary residence declarations, he insists that it is inaccurate to characterize her actions as fraudulent and suggests a political bias in Pulte’s targeting of Democrats while ignoring similar claims against Republicans.

Citing a history of her residency patterns, Lowell explains that Cook has predominantly lived in her Ann Arbor property and has properly classified other locations according to changing circumstances.

As the dispute unfolds, both the administration's and Pulte's contrasting actions point to ongoing tensions regarding financial governance and the political landscape surrounding it. The forthcoming court hearings and Cook's continued fight for her position amid these allegations will be closely monitored.