Federal Reserve Board Member Faces New Criminal Charges Over Property Fraud

According to BlockBeats, the Director of the U.S. Federal Housing Finance Agency, Pulte, has submitted another criminal charge to the Department of Justice concerning Federal Reserve Board Member Cook's third property in Massachusetts. The charge alleges that Cook secured a mortgage of $361,000 for an apartment in Massachusetts, claiming it as a second home. Eight months later, Cook reported rental income between $15,000 and $50,000, reclassifying it as an investment property. Cook may be involved in reverse occupancy fraud, where a borrower purchases a property as an investment but initially misrepresents it as a primary or secondary residence to secure lower interest rates or more favorable loan terms. The borrower might later declare rental income to align the property's status with that of an investment property. BlockBeats previously reported that a hearing for Cook's case is scheduled for this Friday.