US Fed Governor Cook Offers Detailed Defense in Mortgage Fraud Case | Economic and commercial news

Cook’s attorney says the criminal case against her “fails even after the most cursory review of the facts.”

The lawyer for U.S. Federal Reserve Governor Lisa Cook offered the first detailed defense of the mortgage loan applications that gave rise to President Donald Trump’s decision to fire her, saying apparent discrepancies in loan documents were either accurate at the time or an “inadvertent notation” that could not constitute fraud given other disclosures to her lenders.

Cook has denied any wrongdoing, but until Monday neither she nor her legal team had responded in detail to accusations of fraud first made in August by Federal Housing Finance Agency (FHFA) Director William Pulte.

She challenged her impeachment in court, and the U.S. Supreme Court has so far blocked Trump’s attempt to fire him and will hear arguments in the case in January.

A Justice Department spokesperson said the department “does not comment on pending or potential litigation, including matters that may be subject to investigation.”

In a letter to U.S. Attorney General Pam Bondi, seen by Reuters news agency, Cook’s lawyer, Abbe Lowell, said Pulte’s criminal case against her “fails even upon the most cursory review of the facts.”

The two separate criminal referrals filed by Pulte establish no evidence that Cook intentionally deceived her lenders when she obtained mortgages for three properties in Michigan, Georgia and Massachusetts, the letter said.

Lowell also accused Pulte of selectively targeting Trump’s political enemies while ignoring similar allegations against Republican officials, the Wall Street Journal reported.

Lowell said other recent behavior by Pulte “undermined his criminal credentials regarding Gov. Cook.” This behavior includes the recent firing of the FHFA’s acting inspector general and several internal watchdogs at Fannie Mae, one of the mortgage finance giants under FHFA’s control.

The letter also cited a recent Reuters report that the White House ousted acting FHFA Inspector General Joe Allen just after he attempted to provide key discovery material to federal prosecutors in the Eastern District of Virginia who are pursuing an indictment against New York Attorney General Letitia James.

James was also charged with bank fraud and lying to his lender after Pulte made a referral to the Justice Department. She has pleaded not guilty and is seeking dismissal of the case on several grounds, including vindictive and selective prosecution.

Cook’s case is being handled in part by Ed Martin, the Justice Department attorney who Bondi appointed as a special assistant to the U.S. attorney to help with mortgage fraud investigations targeting public figures.

The case remains under investigation and no criminal charges have been filed. The department is also separately investigating California Democratic Sen. Adam Schiff, also at Pulte’s request.