The Justice Department has opened a criminal investigation into Federal Reserve Governor Lisa Cook and has issued subpoenas over accusations that she committed mortgage fraud.

Cook, 61, is now being investigated over the accusations first leveled by Federal Housing Finance Agency Director Bill Pulte, officials familiar with the matter confirmed to the Washington Examiner. The move marks a serious escalation in the controversy, which also comes as President Donald Trump pushes the Fed to lower interest rates.

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Cook is facing accusations that she illegally listed two different homes as her primary residence prior to joining the Fed. Trump fired her, but then she appealed to the courts in an effort to keep her seat on the Fed board.

A hearing Friday in federal court regarding her suit went over two hours, did not end with a ruling either way.

During the hearing, Cook’s lawyer, Abbe Lowell, argued that Trump did not have cause to fire the Fed governor. He also told the judge that Cook’s due process rights were violated, noting that Pulte’s social media accusations of mortgage fraud were immediately followed by Trump’s calls for her resignation.

“You can’t have Director Pulte’s crazy midnight tweets be the cause,” Lowell said.

Justice Department attorney Yaakov Roth argued that Supreme Court rulings have supported the president’s authority to fire government officials and said Cook has not yet responded to the allegations themselves.

Given the nature of the firing and Cook’s position at the Fed, there is a chance that the case makes its way to the Supreme Court. The case has major implications for the Fed’s independence, which, over the years, has insulated it from the executive branch.

While the Supreme Court ruled earlier this year that the president generally has the power to remove independent agency members, the conservative majority stipulated in that case that Federal Reserve board members can only be fired for cause.

The push to oust Cook began after Pulte, who oversees the government-sponsored enterprises Fannie Mae and Freddie Mac, sent a criminal referral to Attorney General Pam Bondi, claiming that Cook listed two homes, one in Michigan and one in Georgia, concurrently as her primary residence months before she was nominated to the Fed board.

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In the letter to Bondi, Pulte said it appears Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”

“This has included falsifying residence statuses for an Ann Arbor, Michigan-based residence and an Atlanta, Georgia-based property in order to potentially secure lower interest rates and more favorable loan terms,” Pulte wrote.

Kaelan Deese contributed to this story.