Trump's FHFA appointee Bill Pulte bypassed watchdog to target Fed governor Lisa Cook, others: Reuters

Lisa Cook (Courtesy: Reuters photo)

A senior Trump administration official allegedly sidestepped established ethics rules while referring political rivals for criminal investigation, Reuters reported. Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency (FHFA), directly approached the U.S. Justice Department instead of his agency’s internal watchdog — a move that the news agency quote experts to say breached long-standing federal ethics norms.

According to Reuters, seven individuals familiar with the matter confirmed that Pulte did not involve the FHFA’s Office of Inspector General (OIG) in his criminal referrals. “The referrals did not come from the OIG,” one source told the news agency. “It took people there by surprise.”

The targets reportedly included Federal Reserve Governor Lisa Cook — whom Donald Trump has attempted to dismiss — along with New York Attorney General Letitia James and Congressman Adam Schiff. Cook has denied all allegations, according to the report.

Legal experts told Reuters that Pulte’s actions violated “impartiality” regulations, as well as internal agency procedures and possibly constitutional due process protections. Richard Painter, who served as ethics counsel to former U.S. President George W. Bush, has been quoted to say, “You can’t single out people for prosecution for political reasons. It’s a clear violation of federal law.”

Reuters cited officials as saying that such criminal referrals are typically handled by the inspector general’s office to ensure independence and fairness. “That would never happen that way before,” said Andrew Tessman, a former federal prosecutor. He added that the public release of such referrals was a clear sign of political motivation.

The FHFA, established after the 2008 financial crisis to oversee the U.S. housing finance system, has rarely been in political spotlight. However, Reuters reported that since his confirmation in March, Pulte has become a vocal defender of Trump’s agenda. Within months, he accused Cook of “blatant mortgage fraud,” publicly calling for her prosecution on social media.

Rather than using existing internal mechanisms, Pulte reportedly created a separate channel for “anonymous tips” about mortgage fraud. Reuters noted that this move puzzled staff, as a similar line already existed under the inspector general’s purview. The earlier system had been designed to remain independent from agency influence, several officials said.

Pulte’s direct referrals came amid a broader Trump-led campaign to pursue criminal cases against perceived political adversaries. In September, former FBI Director James Comey was indicted on perjury charges, days after Trump urged Attorney General Pam Bondi on social media to prosecute him along with Schiff and James. “It’s about justice, really,” Trump told reporters, denying any political motivation.

While none of Pulte’s referrals have resulted in public indictments so far, Reuters reported that federal agencies — including the FBI, IRS, and HUD inspector general — have since collaborated with the Justice Department on related probes.

Documents reviewed by Reuters show that after these referrals, coordination increased among officials from multiple agencies. However, the federal prosecutor overseeing one of the cases resigned after Trump publicly expressed “loss of confidence” in him.

Reuters earlier revealed that one of Cook’s mortgage documents described her Atlanta home as a “vacation home,” contradicting other records cited by Pulte that labeled it a primary residence — a discrepancy that he claimed indicated fraud.

Trump, for his part, has praised Pulte’s actions. “DON’T LET THE RADICAL LEFT WEAKLINGS STOP YOU!” he posted online, urging his appointee to press on. Still, according to Reuters legal experts warned that Pulte’s direct appeals to the Justice Department could erode public trust in federal impartiality and blur the boundaries between politics and law enforcement.