Lisa Cook under fire for Trump removal lawsuit, legal expert explains
Catholic University America law professor Chad Squitieri discusses President Donald Trump revoking former Vice President Kamala Harris' Secret Service detail and Federal Reserve Board of Governors member Lisa Cook's legal action after ousting.
The Justice Department said Thursday that it has officially initiated a criminal investigation into Federal Reserve Governor Lisa Cook, accompanied by the issuance of subpoenas as part of the inquiry.
The investigation comes as Cook sues President Donald Trump in federal court over her firing from the panel of central bankers that is tasked with charting the nation’s economic path.
The fraud allegations Trump cited in his move to fire her were first leveled by Bill Pulte, a Trump appointee to the federal agency that regulates Fannie Mae and Freddie Mac. In two separate referrals to the Justice Department, Pulte linked Cook to a trio of mortgages she took out before she joined the nation's central bank.
FEDERAL RESERVE GOVERNOR LISA COOK SUES TRUMP
President Donald Trump tired to fire Fed governor Lisa Cook, but she is refusing to step down. (Al Drago/Bloomberg via Getty Images; Allison Robbert/Bloomberg via Getty Images / Getty Images)
The loans, tied to properties in Michigan, Georgia, and Massachusetts, have drawn scrutiny over whether she misrepresented how the homes would be used. Trump seized on those allegations in his bid to oust her from her role as a Federal Reserve governor.
Cook's lawsuit argues that Trump's move to fire her is unlawful and undermines the Federal Reserve's independence. The lawsuit, which was filed in federal court on Aug. 28, does not address why Cook listed two houses as a primary residence on mortgage filings.
Her lawyer, Abbe Lowell, wrote in a filing on Sept. 2 that she "did not ever commit mortgage fraud.
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The White House referred queries to the Department of Justice. The Federal Reserve declined to comment.
Before Cook filed her suit, a Fed spokesperson acknowledged the potential legal feud and wrote in an Aug. 26 statement that the Fed will "abide by any court decision."
This is a developing story. Please check back for updates. Fox Business' Ashley Oliver contributed to this report.
