Federal Reserve Board Member Charged with Property Fraud in Massachusetts

Pulte, Director of the U.S. Federal Housing Finance Agency, has filed criminal charges against Federal Reserve Board Member Cook for alleged property fraud in Massachusetts. The charge concerns a third property in the state. According to the Department of Justice, Cook secured a $361,000 mortgage for an apartment, claiming it as his second home. Eight months later, he reported rental income ranging from $15,000 to $50,000, reclassifying it as an investment property. The charges stem from Cook’s alleged involvement in reverse occupancy fraud, where a borrower misrepresents the purpose of a property purchase to secure favorable loan terms, often by initially claiming it as a primary residence before converting to an investment after securing the mortgage. A hearing for Cook’s case is scheduled for this Friday.