According to seven sources familiar with the matter, Bill Pulte, director of the Federal Housing Finance Agency (FHFA), a Trump appointee, bypassed internal procedures and ethics rules by referring criminal inquiries directly to the Justice Department.
Trump appointee skirted ethics rules by directing criminal inquiries against Fed chair and other opponents
According to sources, Pulte bypassed his agency’s inspector general, who typically submits such materials, and asked the Justice Department to open an investigation against Lisa Cook, the head of the Federal Reserve, and two other senior officials.
Pulte had previously publicly accused Cook, a longtime critic of Trump’s policies, of “mortgage fraud,” claiming she violated rules when submitting loan applications. President Trump, who unsuccessfully sought her dismissal, openly supported the accusations.
“The inquiries did not come from the inspector general.” “This surprised many at the agency,” one of the sources told Reuters.
Political Subtext and Criticism of Lawyers
The situation has raised concerns among lawyers and ethics experts. They believe Pulte’s actions violate impartiality standards designed to prevent political pressure and abuse of power.
“You can’t bring cases for political reasons. This is a clear violation of federal law,” said Richard Painter, a former lawyer in the George W. Bush administration.
Experts noted that Pulte’s actions could violate federal ethics standards, the Privacy Act, and the Fifth Amendment of the U.S. Constitution, which guarantees the right to a fair trial.
However, it remains unclear whether the violations will lead to disciplinary consequences. Pulte declined to comment, and representatives of the Justice Department, the White House, and the Office of the Inspector General also did not respond to press inquiries. The Investigation Against the Fed Chairman and a Political Campaign.
Pulte’s actions are part of a broader campaign by the Trump administration against political opponents. Last month, former FBI Director James Comey was indicted on perjury charges, shortly after Trump publicly demanded that he be held “accountable.”

“This isn’t about revenge, it’s about justice,” Trump told reporters.
According to Reuters, Pulte also filed similar materials against New York Attorney General Letitia James and Democratic Congressman Adam Schiff, but neither case resulted in charges.
The federal prosecutor overseeing one of the investigations resigned after the president stated that he had “lost confidence in him.”
Procedural Violations and Internal Bypasses
Lawyers point out that such investigations in federal agencies should be initiated by the inspector general, not a politically appointed official. This is necessary to avoid interference and maintain the independence of the investigations.
“The fact that these cases were made public already speaks volumes about their political motivation,” said former federal prosecutor Andrew Tessman.
Pulte, according to sources, also created a new channel for “anonymous reports of mortgage fraud,” bypassing an existing hotline overseen by the inspector general.
Six FHFA employees told Reuters that this move was puzzling, as the agency already had such a system in place specifically to protect itself from internal pressure.
Increasing Pressure on the Fed
The investigation into Cooke comes amid Trump’s push to tighten his grip on the Federal Reserve.
Pulte and other administration officials have repeatedly criticized Fed management, demanding lower interest rates.
Last week, the U.S. Supreme Court rejected the White House’s petition to remove Cooke, staying the proceedings pending the administration’s arguments.
The FHFA is a relatively small agency created after the 2008 crisis to oversee the mortgage market. Immediately after his appointment in March, Pulte began actively expressing support for White House initiatives and criticizing dissenting officials.
Public Support for Trump
Despite the criticism, President Trump publicly supported Pulte, writing on the social media platform TruthSocial:
“Don’t let the radical left-wing weaklings stop you!”
However, there is growing concern in legal circles that the ethical barriers between politics and the US law enforcement system are blurring, and that the use of criminal investigations against opponents is becoming a tool of pressure.