The Justice Department issued subpoenas Thursday targeting Federal Reserve Governor Lisa Cook in a criminal investigation over allegations of mortgage fraud, escalating a legal battle between Cook and President Donald Trump.
Attorney General Pam Bondi launched the criminal probe focusing on Cook’s properties in Michigan and Georgia. Officials said they are summoning a grand jury as part of the investigation.
The criminal investigation comes as Cook fights Trump’s unprecedented attempt to fire her from the Federal Reserve board. No American president had ever tried to unilaterally remove a Fed governor before Trump fired Cook on August 25.
It also comes just days after an investigative reporter showed up unannounced at Cook’s primary residence — and found it was being rented.
NEW: VIDEO PROOF
We have just received video proof that Lisa Cook’s declared “PRIMARY RESIDENCE” is being RENTED out to tenants.
Cook RECENTLY CLAIMED to the U.S. Government that it was her PERSONAL RESIDENCE, but she’s renting it out?
Good journalism, @Charlieleduff pic.twitter.com/YMIN2dHJGm
— Pulte (@pulte) September 2, 2025
Trump-appointed Federal Housing Finance Agency director Bill Pulte first accused Cook of mortgage fraud last month.
“We’ll have a majority very shortly,” Trump said about replacing Cook. “So that’ll be great. Once we have a majority, housing is going to swing, and it’s going to be great. People are paying too high an interest rate. That’s the only problem with us. We have to get the rates down a little bit.”
Cook filed a lawsuit claiming Trump’s firing was illegal and designed to undermine Federal Reserve independence. Her attorneys argued the president “made up a reason to dismiss her so he can move forward his agenda to undermine the independence of the Federal Reserve.”
The White House maintains Trump acted within his presidential authority. The Federal Reserve Act grants the president power to remove Fed governors “for cause.”
Legendary Democratic lawyer Abbe Lowell represents Cook in her legal fight. Lowell has represented clients from both parties for decades, including Hunter Biden and New York Attorney General Letitia James.
“I have basically challenged the overreach of federal agencies in every administration since Ronald Reagan’s,” Lowell said. “Didn’t matter whether it’s a Democratic or Republican administration. If the government overreaches, then [the] lawyer’s job is to put the government in the right place.”
Ed Martin, a Trump ally and top DOJ official, was picked by Bondi to handle the Justice Department inquiry. Martin previously served as interim U.S. attorney in Washington but left after not receiving enough Republican support for his nomination.
A federal judge is examining Cook’s legal request for an emergency order to halt her removal from the Fed board. A Friday court hearing on the matter ended without an immediate decision.