Federal Reserve Governor allegedly did what Trump and his company did

A significant and troubling development is unfolding in Washington, one that strikes at the heart of two institutions central to American life: the justice system and the nation’s independent central bank.

Federal Housing Finance Agency Director William Pulte has publicly called for the criminal prosecution of Federal Reserve Governor Lisa Cook.

In a letter to the Attorney General, Pulte alleges that Cook committed mortgage fraud by incorrectly representing two separate properties, one in Michigan and one in Atlanta, as her primary residence in order to secure more favorable loan terms.

Cook, in a statement, said she learned of the allegations from media reports and denies any wrongdoing.

She stated she has no intention of resigning and is gathering facts to provide answers to what she called legitimate questions.

This serious accusation comes just one day after a New York State appeals court voided the nearly $500 million civil fraud penalty against President Donald Trump, who did essentially the same thing on a much greater scale over a long period of time.

New York Attorney General Letitia James won the civil case against Trump, his company, two of his adult children, and two former executives last year when a state court judge determined that they collectively committed a long-running fraud involving false information they provided to potential lenders and insurers about the value of his properties.

That court unanimously upheld the finding that Trump and his company had committed fraud by inflating the value of assets, but ruled the massive financial penalty was, in its words, “an excessive fine” that violated the U.S. Constitution’s Eighth Amendment.

The timing of these two events has not gone unnoticed. It raises questions about the consistent application of the law.

This legal whiplash—a nine-figure penalty for fraud voided for one man while a potential criminal case for analogous conduct is initiated against a key official—creates a hall-of-mirrors effect where principle seems subordinate to power.

This is the state of play. We are witnessing a profound unraveling, a moment where the independent pillars of finance and justice are not just under pressure but are being actively remade into instruments of political combat.

Trump allies are reportedly building a case to remove Federal Reserve officials, including Cook, who was appointed by President Joe Biden.

The brutal irony is that Cook has been a voice within the Fed’s internal debates for the very dovishness on interest rates the Republican President publicly craves. Her sin appears not to be her policy stance, but her origin as an appointee of the previous administration and her perceived affiliation with the opposition party.

Trump has publicly called for her resignation.

The allegation, a potential felony, hinges on a seemingly mundane discrepancy of addresses.

Pulte’s referral for criminal prosecution asserts that Cook, in acquiring two separate home loans, represented both a Michigan house and an Atlanta condominium as her primary residence within a short timeframe, a maneuver that can secure more favorable loan terms.

Meanwhile, the Justice Department has opened investigations into New York Attorney General Letitia James, who brought the fraud case against Trump. These probes are being led by a department official who has himself called for the Attorney General to step down.

These are complex and serious matters.

At issue is the fundamental principle of equal justice under law, a cornerstone of our democracy.

The American people will be watching closely to see how these events unfold, and will expect their institutions to act with fairness and impartiality.