AG Bill Schuette asks that Grievance Commission investigate a former state supreme court justice

LANSING (WXYZ) - Attorney General Bill Schuette has asked the Attorney Grievance Commission (AGC) to look into allegations of misconduct by former state Supreme Court Justice Diane Hathaway.

In a letter to the AGC, Schuette points out how the Judicial Tenure Commission (JTC) originally authorized disciplinary charges against Hathaway, but will likely not pursue them since she abruptly retired on Monday, January 21.

"The conduct described in the JTC Complaint raises serious questions as to Ms. Hathaway's fitness to practice law," writes Schuette.

The 7 Action News Investigators broke the story that led to an investigation into Hathaway, who qualified for a short sale and unloaded about $600,000 of debt, by shuffling property out of her name and into the names of two of her stepchildren.

"I ask you to investigate the series of property transfers and the conduct preceding a short sale of the Lakeview Court property discussed in the Complaint," wrote Schuette to the AGC. 

Our investigation resulted into a FBI investigation, a civil complaint and a federal indictment. 

Hathaway is scheduled to be arraigned on a bank fraud charge on Tuesday in US District Court.