Lisa Cook’s attorney, Abbe Lowell, denied that she ever committed mortgage fraud in a court filing on Tuesday. Photo by Jim Lo Scalzo/EPA
Sept. 3 (UPI) — Attorneys for Federal Reserve Governor Lisa Cook denied claims of wrongdoing made by the Trump administration as she seeks to block President Donald Trump‘s efforts to fire her.
In a civil action filed Tuesday, Cook’s attorney, Abe Lowell, denied claims made by U.S. Director of Federal Housing Bill Pulte that she committed mortgage fraud, which Trump presented as the reason for her firing, are untrue.
“Governor Cook did not ever commit mortgage fraud,” her attorneys wrote.
The action seeks to follow up on a suggestion made Friday by the courts to use a fast-tracked review to rule on the key issues of Cook’s case, which would cut through more routine routes and timelines.
The filing states that Cook’s team would agree to this, as long as Trump, who is a defendant along with Federal Reserve Chair Jerome Powell and the Fed Board of Governors, would agree to allow Cook to serve as Fed Board Governor until the expedited ruling is made.
Cook has served as a Federal Reserve Governor since 2022 but was fired by Trump following a criminal referral from a member of his administration that alleged Cook committed mortgage fraud.
She has not been charged with any related crime.
Trump fired her “for cause,” which is the only way a president can fire a Fed governor under the Federal Reserve Act.
The White House has since attempted to justify her firing under the past case Reagan vs. United States, which the administration interprets to have created precedent that when a president determines cause for termination exists, it’s unreviewable unless protected by specific removal statutes.
“But the Government ignores the facts, context, and reasoning of Reagan to advance this contorted reading,” the lawsuit suggests. “In reality, Reagan hurts the Government’s case more than it helps it.”
Cook’s attorneys explained the “Reagan” case helped define that as officers such as Federal Reserve Board governors serve fixed terms, they are entitled “to notice and a hearing, and ultimately judicial review” before being removed for cause.
As for Cook’s role as a Fed governor, she remains active until a court rules otherwise, despite Trump’s actions.
Meanwhile, Pulte, who was responsible for both the original and a second criminal referral against Cook, said he would hold a meeting with the press on Thursday.
Pulte has posted a wave of allegations against Cook since mid-August.
“Once you see what we present on Thursday, there’s going to be a lot of people apologizing and retracting their false and defamatory statements,” Pulte posted Tuesday in regard to those who have defended Cook and called the Trump administration’s action a political power move. “Watch.”