Federal Reserve Governor Lisa Cook is facing a second criminal referral to the Justice Department regarding her property holdings, intensifying the legal and political fight surrounding her position on the Fed board.
The referral was announced late Thursday by Federal Housing Finance Agency (FHFA) Director Bill Pulte, who posted the referral letter on social media with the comment: “Three strikes and you’re out.”
Allegations Over Cambridge Condo
Pulte said the latest referral relates to Cook’s 2021 purchase of a condominium in Cambridge, Massachusetts.
According to his statement, Cook obtained a 15-year mortgage on April 7, 2021, representing the property as her “second home.” But by December 2021, she declared the same condo as an “investment/rental property” in an official U.S. government ethics form.
Subsequent filings from 2022 through 2025 also listed the Cambridge condo as an investment property, not a second home.
“Representing the property as a second home may have allowed Cook to secure a lower down payment and more favorable mortgage terms,” Pulte wrote. “Investment properties typically carry higher down payments and higher rates due to increased risk.”
Earlier Referral
The FHFA’s first referral, announced Aug. 20, alleged that Cook misrepresented an Atlanta condo as her “primary residence” while also maintaining a primary home in Michigan. Loans for primary residences typically come with easier terms than those for second homes or investment properties.
Together, Pulte said, the two cases show “multiple false representations, including to the U.S. Government.”
Political Fallout
The allegations have triggered a broader political battle. After the first referral, President Donald Trump called for Cook’s resignation. When she refused, Trump declared her fired, setting off a court fight over presidential authority to remove Federal Reserve governors.
The new referral is expected to further complicate that legal showdown.
Broader Investigations
Cook is not the only Democrat under scrutiny for property disclosures.
Sen. Adam Schiff (D-Calif.) has faced accusations of claiming both his California and Maryland homes as “primary residences.”
New York Attorney General Letitia James, who led a high-profile civil case against Trump, has been accused of misrepresenting a Norfolk, Virginia property as a “primary residence” despite living in New York.
The FBI is currently investigating those matters.
