The Department of Justice (DOJ) launched a mortgage fraud investigation into fired Federal Reserve governor Lisa Cook, the Daily Caller News Foundation confirmed on Thursday.

Special Attorney Ed Martin, who is responsible for addressing mortgage fraud by public officials, is working on the investigation with U.S. attorneys in Georgia and Michigan, a source familiar confirmed.

The Wall Street Journal first reported the investigation.

Federal Housing Finance Agency (FHFA) director Bill Pulte initially referred Cook in August to the DOJ, alleging she “falsified bank documents and property records to acquire more favorable loan terms,” naming properties in both Michigan and Georgia as her primary residence. He issued a second criminal referral relating to a third property in Massachusetts on Aug. 28.

President Donald Trump removed Cook from her position over the allegations on Aug. 25, prompting Cook to sue to regain her job. Cook was appointed by former President Joe Biden in 2022.

Pulte, who Trump appointed to lead the FHFA, had scheduled a press conference for Thursday morning but canceled it “out of respect for the process.”

Abbe Lowell, who is representing Cook, suggested in a statement to Reuters that Trump wants “cover” for firing her.

“The questions over how Governor Cook described her properties from time to time, which we have started to address in the pending case and will continue to do so, are not fraud, but it takes nothing for this DOJ to undertake a new politicized investigation, and they appear to have just done it again,” Lowell said.

Cook has denied that she committed fraud.

Martin is also leading mortgage fraud probes into Democratic New York Attorney General Letitia James and Democratic California Sen. Adam Schiff.

“The Department of Justice does not comment on current or prospective litigation including matters that may be an investigation,” a DOJ spokesperson told the DCNF.

Lowell did not immediately respond to a request for comment.

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