Justice Department opens criminal investigation into Federal Reserve Governor Lisa Cook: Sources

(WASHINGTON) -- The Department of Justice has opened a criminal investigation into Federal Reserve Governor Lisa Cook, sources familiar with the matter said Thursday.

The Wall Street Journal first reported the existence of the criminal investigation.

As President Donald Trump seeks to reshape the balance of the Federal Reserve central banking system, Pulte's allegations have become the basis of Trump's effort to terminate Cook "for cause" -- a controversial and legally fraught move that is actively being challenged in court.

Days later, Trump attempted to fire Cook based on the allegations that she designated both her homes in Georgia and Michigan as her primary residence. Cook has denied wrongdoing, said she would continue to serve in her role, and sued to challenge Trump's attempt to remove her.