Tag: fraud

DOJ Opens Grand Jury Criminal Investigation Fed Governor Lisa Cook Over Mortgage Fraud Allegations

The Department of Justice has opened a criminal investigation into Federal Reserve governor Lisa Cook – and has issued multiple subpoenas as part of the inquiry into whether she committed mortgage fraud, according to the Wall Street Journal, citing ‘officials familiar with the matter.’

The probe – for which a grand jury has been assembled, will begin by looking at Cook’s properties in Ann Arbor, Michigan and Atlanta. It comes on the heels of two criminal investigations from Federal Housing Finance Agency director Bill Pulte, who has been dropping receipts for weeks with evidence that Cook committed fraud – including claiming two properties as her “primary residence” – as well as claiming that a rented out third property was her ‘second home’ – all things that would qualify her for better rates and tax treatment. 

Pulte accused Cook of misleading banks on multiple mortgage applications to receive favorable lending terms, such as lower interest rates, typically given to a buyer who intends to occupy the home they purchase. 

A judge is considering Cook’s request for an emergency order stopping her from being removed from the Fed board while the case proceeds. The Fed’s next meeting is set to begin Sept. 16. -WSJ

Last Thursday, Cook filed a lawsuit against the Trump administration after President Donald Trump fired her that Monday ‘for cause.’ Among the excuses contained in the lawsuit for alleged mortgage fraud was a possible clerical error. 

Except, Cook described herself in her 2023 nomination hearing as having “significant experience in banking and finance, as is evidenced by my service on the board of directors of the Federal Reserve Bank of Chicago and of a Community Development Financial Institution in Michigan, in addition to my employment at an investment bank and a large commercial bank.” 

What’s more, the Federal Reserve Act allows the president to fire Fed governors ‘for cause’ – which the Trump administration claims applies. In a Tuesday court filing, Cook’s lawyers said she “did not ever commit mortgage fraud.”

Pulte shot down any notion that the fed wasn’t political in a Thursday appearance on CNBC, saying “I don’t believe for the last 4 years that the Fed has been independent.” 

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Massive Commercial Driver’s License Fraud in Jacksonville

The massive commercial driver’s license (CDL) fraud in Jacksonville has been uncovered following an investigation that revealed how individuals without English proficiency obtained these licenses using hidden devices and external accomplices. The operation, described as “organized fraud” by the Florida Highway Patrol, has raised concerns about road safety and the integrity of DMV exams.

Five people were arrested in Jacksonville, including Vladislav Juraschik, who was convicted of two felonies and sentenced to eight months in prison. They used devices such as hidden phones and earpieces to receive answers during the exams, allowing individuals without adequate knowledge to obtain commercial licenses. This practice has been linked to fatal accidents, including a case where a driver, after a deadly crash, demonstrated that he could not understand traffic signs or answer basic questions in English.

Additionally, in Bay County, two employees of the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) were arrested for issuing fraudulent licenses to undocumented immigrants in exchange for bribes. The investigation, which spanned at least two years, also involved intermediaries such as the company CubaMax, which specializes in immigration procedures. Authorities confiscated $120,000 in cash during the arrests.

This scandal has exposed vulnerabilities in the commercial license issuance system and has prompted calls for comprehensive reform to ensure road safety and maintain public trust in the institutions responsible for highway security.

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How the Fired Fed Governor Lisa Cook Engaged in Blatant Mortgage Fraud — It’s Far Worse Than You Think

Will Too Late Jay Powell allow an illegitimate Fed meeting September 16-17, 2025?

Cook’s false occupancy statements on mortgage applications are confirmed by her numerous errors and omissions in her signed U.S. Office of Government Ethics financial filings.

But wait, there’s more. Did Cook exploit regulatory lapses at a free-wheeling DC credit union where they ignored risks and gave her two low-interest rate mortgages?

Cook likely could not have tricked the underwriting systems at major banks, Fannie Mae, and Freddie Mac, but was approved for two first mortgages from Bank-Fund Staff Federal Credit Union (“BFSFCU”), where she was somehow admitted by BFSFCU as a member even though she has no known affinity to meet eligibility.

Cook made false statements on two mortgage applications that BFSFCU overlooked and closed the two mortgages as primary or secondary residences in Atlanta, GA, and Cambridge, MA, when instead the loans should have been properly disclosed as riskier, higher down payment, and higher rate and fee rental properties.

Cook already had a primary residence and a first mortgage prior to being let into BFSFCU.

Cook later listed on her OGE filings that she had an Ann Arbor property mortgage originated by Members First Mortgage, a State credit union affiliate.

Bank-Fund Staff Federal Credit Union in Washington, D.C., is a community – and employer-based membership credit union with $6.5 billion in assets and over 100,000 members.

Eligible members are employees and families of the World Bank and International Monetary Fund, with one exception: membership is open to citizens from terrorist countries on the U.S. Treasury list of sanctioned enemies of America.

How is she eligible for BFSFCU, and why did she slide into their DC offices?

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Michigan Democrats Caught in $5 Billion Fraud Scheme

Republicans in Michigan have exposed one of the most blatant examples of budgetary abuse in recent memory. 

House Republicans say their review of the state budget revealed more than $5 billion in waste, fraud, and abuse, hidden through the creation of 4,277 “phantom jobs.” 

These positions do not exist in reality but were used to justify line items that allowed Democrats to funnel money toward radical priorities rather than essential services. 

Among the spending categories tied to these fake jobs are taxpayer-funded gender surgeries for convicted criminals and millions in “arts and culture” grants for organizations that cannot even be identified.

Under complete Democrat control, Lansing has allowed the budget to balloon to over $82 billion—the largest in state history. 

Compared to just two years ago, state spending has grown by nearly 20%, and rather than delivering real benefits for taxpayers, the increase has been absorbed by programs that advance ideological goals. 

Roads remain among the worst in the nation, insurance rates continue to weigh down families, and basic services show little improvement. Yet Democrats diverted billions toward programs that would not survive public scrutiny if debated honestly.

Republicans have presented a clear alternative. Their plan eliminates the fake jobs, strips out the fraudulent spending categories, and redirects those funds to priorities that ordinary citizens actually value. 

That includes repairing infrastructure, providing real tax relief, and ensuring that schools have the resources needed to educate students rather than serve as staging grounds for partisan experiments. 

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California Democrat Lobbyist Gets Six Months in Jail for Wire Fraud

The downfall of Melahat Rafiei, once an influential figure in Orange County Democrat politics, is now official. 

On Friday, a federal judge sentenced Rafiei to six months in prison for attempted wire fraud, closing a case that has lingered since her 2019 arrest. 

The ruling not only punished her crimes but also highlighted how deeply corruption has penetrated Democrat politics in California.

Rafiei, who previously led the Orange County Democrat Party and worked as a prominent lobbyist, admitted guilt in 2023 under a plea agreement with federal prosecutors.

In addition to acknowledging the wire fraud charge, she admitted that she attempted to bribe two Irvine City Council members to secure favorable cannabis legislation. 

Although she was not charged with the bribery allegations, her plea agreement made it clear that she had actively used political influence for personal and financial gain.

The judge imposed a sentence of six months in federal custody, a $10,000 fine, and three years of supervised release. 

He also emphasized that Rafiei had been able to build her career because of democrat institutions and that she had abandoned those principles in pursuit of power and money. 

Rafiei has been ordered to surrender to authorities by late September.

In court, Rafiei offered little defense beyond expressing that she would accept whatever penalty the court determined. 

Her legal team argued that she had made a positive contribution to the community in the past and highlighted the number of friends and relatives who supported her at sentencing. 

They portrayed her as someone who had already lost her career and reputation, even before serving time in prison.

The case had been stalled for years, mainly because Rafiei agreed to cooperate with federal investigators after her arrest. 

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Letitia James Caught Harboring Fugitive! — Jailbird Niece is Hiding Out in Letitia’s “Primary Residence” Mortgage Fraud Home in Virginia

The North Carolina Department of Adult Correction is actively searching for Nikia Monique Thompson, the fugitive daughter of New York Attorney General Letitia James’s niece

Thompson, listed as an “Absconder” (offender number 0898340) on the department’s official site, is wanted for violating probation terms. North Carolina authorities are urging anyone with knowledge of her whereabouts to call their tip line at 1-888-646-0024.

Where is Nikia Monique Thompson hiding? All indications, including from Letitia James herself, are that Thompson is hiding out at Letitia’s “mortgage fraud” home in Norfolk, Virgina.

This means that Letitia James herself could be charged with harboring a fugitive. And, because it involves interstate flight, James could be subject to federal harboring law which carries up to 5 years in prison.

As detailed on Sam Antar’s White Collar Fraud website, Letitia James co-signed for a mortgage for a property located at 604 Sterling Street in Norfolk, Virginia, alongside her niece, Shamice Thompson-Hairston in August 2023.

Despite being a permanent resident of Brooklyn and New York State Attorney General, as part of this transaction, James executed a notarized Power of Attorney (POA) which included a sworn declaration stating, “I hereby declare that I intend to occupy this property as my principal residence.”

William Pulte, Director of the Federal Housing Finance Agency, cited this declaration in an April 14, 2025, letter to U.S. Attorney General Pam Bondi, alleging that James may have falsified bank documents and property records to acquire government-backed loans with more favorable terms, since her “primary residence” declaration was instrumental in securing lower mortgage rates.

In addition, James’s 2011 HAMP loan that I covered in The Gateway Pundit was also cited by Pulte for investigation.

On May 21, 2025 while speaking before the Association for a Better New York, Letitia James attempted to deflect the growing controversy over her criminal referral to the DOJ by claiming her motives were purely familial.

“In reality, the power of attorney was never used to determine my eligibility for a mortgage for my niece for a home in the state of Virginia,” James said. “My niece has children, and because I’m a good aunt, I wanted her to have a home.”

But as I detailed in The Gateway Pundit in Crime Runs in the Family! Letitia James Buys Home for Niece’s Jailbird Adult Kids, James’s explanation, that she is a “good aunt” merely helping her niece and her children, was misleading. The “children” whom James’s statement implied were minors, are both adults, and both have significant criminal histories.

Nakia Monique Thompson has a criminal record spanning 20 years in the states of Virginia and North Carolina, and include multiple convictions for contributing to delinquency of a minor, abuse of child, possession of burglary tools, third degree larceny, assault and battery,  trespassing, shoplifting, resisting arrest, disorderly conduct, possession of marijuana, driving with a suspended license, and even malicious conduct while incarcerated.

Her persistent criminal activity underscores the seriousness of James’s role in providing Thompson with a hide out while on the run from North Carolina authorities.

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A 3rd Property!? Pulte Drops New Criminal Referral On Lisa Cook As Mortgage Scandal Widens

On Thursday night, Federal Housing Finance Agency (FHFA) Director Bill Pulte dropped a second criminal referral against Federal Reserve Governor Lisa Cook based on evidence that she entered into a 15-year mortgage on a third property which she listed as her “Second Home.” 

On an ethics form signed with the government, however, Cook noted it as an “investment/rental property.”

Why is this bad and not simply a ‘clerical error’? As Pulte notes, “Representing the property as a second home may have allowed Cook to secure a lower “Second Home” mortgage down payment and rates, as investment properties typically carry higher down payments and higher rates due to increased risk.”

This new criminal referral follows an initial referral Pulte made after Cook listed two properties as her ‘primary residence’ in 2021 – ostensibly reaping manifold benefits on tax treatment and interest rates, which Cook hasn’t denied. 

About that Clerical Error…

Earlier Thursday, Cook filed a lawsuit against the Trump administration after President Donald Trump fired her on Monday ‘for cause.’ Among the excuses contained in the lawsuit for listing two properties as her primary residence was a possible clerical error. 

Except, Cook described herself in her 2023 nomination hearing as having “significant experience in banking and finance, as is evidenced by my service on the board of directors of the Federal Reserve Bank of Chicago and of a Community Development Financial Institution in Michigan, in addition to my employment at an investment bank and a large commercial bank.” 

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Victim Loses $91M in Bitcoin in Social Engineering Scam: ZachXBT

A fraudster posing as a hardware wallet support agent tricked the target into handing over wallet credentials.

What to know:

  • A victim lost 783 BTC in a social engineering scam after an attacker impersonated hardware wallet support.
  • The stolen funds were funneled through multiple deposits into Wasabi Wallet, a privacy tool used to mask transaction trails.
  • The hack came exactly one year after the $243M Genesis creditor theft, underscoring ongoing vulnerabilities in crypto security.

Blockchain sleuth ZachXBT uncovered a high-profile social engineering attack on Thursday, with the victim losing 783 BTC worth around $91.4 million.

The scam occurred on Aug. 19 and involved the attacker posing as a support agent for a hardware wallet before duping the victim into handing over wallet credentials.

The attack mirrors a string of social engineering attacks over the past year and contributes to an already woeful year in terms of hacks and scams, with crypto investors losing $3.1 billion in the first half of 2025.

Once the malicious transfer was made, the funds began their journey through a typical laundering process, with multiple deposits made into Wasabi Wallet, a privacy tool commonly used to obfuscate the trail.

The hack occurred exactly one year after the $243 million Genesis creditor theft, a landmark event that sent ripples across the industry and led to the arrest of 12 people in California in May.

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Trump fires Federal Reserve Gov. Lisa Cook over mortgage fraud allegations

President Trump fired Federal Reserve Gov. Lisa Cook Monday over allegations that she committed mortgage fraud.

“Pursuant to my authority under Article Il of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote in a letter addressed to Cook, which he posted on Truth Social.

Cook, however, argued that Trump has “no authority” to fire her and indicated that she’s not leaving her post, in a statement.

“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said, according to multiple outlets. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

The longtime academic, who previously served on former President Barack Obama’s White House Council of Economic Advisers and former President Joe Biden’s transition team, has hired former first son Hunter Biden’s lawyer, Abbe Lowell, to represent her. 

In a statement, Lowell vowed to take “whatever actions are needed” to stop what he described as Trump’s “illegal action.”

Cook’s firing comes after Federal Housing Finance Agency Director Bill Pulte accused the Federal Reserve board member of falsifying bank documents and property records to secure better loan terms, in a criminal referral sent to Attorney General Pam Bondi last week.

Pulte alleged in an X post that Cook had designated a condo in Atlanta as her primary residence in July 2021, just two weeks after taking a loan on her Michigan home, which she also declared as a primary residence.

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Reporter Thrown Out of Fed’s Jackson Hole Conference, Charged With Criminal Trespass For Asking Federal Reserve Governor Lisa Cook Questions About Her Mortgage Fraud Scandal

A reporter was thrown out of the Fed’s annual Jackson Hole conference and hit with a criminal trespass notice for asking Federal Reserve Governor Lisa Cook questions about her mortgage fraud scandal.

Fed Chair Jerome Powell, Federal Reserve Governor Lisa Cook, Governor of the Bank of England, President of the European Central Bank and others were present at the Fed’s annual press conference in Jackson Hole, Wyoming on Friday.

CNBC reported on Lisa Cook’s attendance at the annual conference in Jackson Hole.

Federal housing regulator Bill Pulte has produced documents alleging Lisa Cook committed mortgage fraud – specifically occupancy fraud – when she lied about her out-of-state Atlanta condo being her ‘primary residence.’

According to Pulte’s criminal referral, Lisa Cook committed mortgage fraud by lying on her mortgage application and falsifying bank statements when she designated her out-of-state Atlanta condo as her “primary residence”—just two weeks after taking a loan on her Michigan home, which she also claimed as her “primary residence.”

By claiming “primary residence” on her out-of-state condo, Lisa Cook received more favorable loan terms and a lower interest rate.

On June 18, 2021, Cook acquired a loan on a property in Ann Arbor, Michigan. On the mortgage agreement, Cook represented to “use the Property as Borrower’s principal residence within 60 days after the execution of her agreement, Pulte said.

On July 2, 2021, just two weeks later, Lisa Cook also purchased a condo in Atlanta and entered a 30-year mortgage agreement and affirmed the property would serve as her primary residence within 60 days of the execution of the mortgage and would serve as her primary residence for a full year, Pulte’s referral said.

Pulte dropped more receipts on Friday morning as Lisa Cook attended the annual conference in Wyoming.

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