Legal counsel for Federal Reserve Governor Lisa Cook has mounted the first comprehensive rebuttal to mortgage fraud allegations that prompted President Donald Trump’s attempt to remove her from office, characterizing purported inconsistencies in loan documentation as either temporally accurate or minor clerical errors insufficient to constitute criminal deception.
Cook’s attorney Abbe Lowell, in correspondence obtained by Reuters and directed to US Attorney General Pam Bondi, systematically dismantled criminal referrals submitted by Federal Housing Finance Agency Director William Pulte. The letter asserts these referrals “fail on even the most cursory look at the facts,” arguing they lack evidence demonstrating Cook deliberately misled financial institutions when securing mortgages for properties across Michigan, Georgia, and Massachusetts.
Until Monday’s disclosure, neither Cook nor her legal representatives had provided substantive commentary on accusations first leveled in August by Pulte. Cook maintains her innocence and has mounted a legal challenge to her termination. The Supreme Court has temporarily halted the dismissal and scheduled oral arguments for January, leaving her employment status in limbo pending judicial review.
Read also: U.S. Supreme Court: Halts Order Requiring Trump To Fund SNAP
Lowell’s defense strategy extends beyond mere factual correction, alleging Pulte engaged in politically motivated enforcement targeting Trump administration adversaries while overlooking comparable conduct by Republican figures. The Wall Street Journal reported that Cook’s legal team highlighted Pulte’s recent removal of the FHFA’s acting inspector general and multiple internal oversight officials at Fannie Mae, one of the government-controlled mortgage finance entities under FHFA jurisdiction, as evidence undermining the credibility of his criminal referrals.
The attorney cited Reuters reporting that detailed how the White House forced out FHFA acting Inspector General Joe Allen immediately following his attempt to furnish critical evidentiary materials to federal prosecutors in Virginia’s Eastern District. Those prosecutors are pursuing charges against New York Attorney General Letitia James, who faces bank fraud accusations stemming from another Pulte referral to the Justice Department. James has entered a not guilty plea and seeks case dismissal on grounds including vindictive and selective prosecution.
Cook’s matter falls partially under the purview of Ed Martin, the Justice Department’s pardon attorney, whom Bondi designated as special assistant US attorney for mortgage fraud investigations involving public officials. No criminal charges have materialized against Cook, though the probe remains active. The department is simultaneously examining Democratic California Senator Adam Schiff following yet another Pulte referral. A Justice Department spokesperson declined comment, stating the agency “does not comment on current or prospective litigation, including matters that may be an investigation.”