Hathaway retires from court, expected to face judge on Bank Fraud charge soon

(WXYZ) - Michigan Supreme Court Justice Diane Hathaway is officially retired.  But she could soon be in front of a Federal Judge to answer to a Bank Fraud charge.

The allegations outlined by the feds in the charging document mirror what 7 Action News Investigators reported last year. 

Hathaway is accused of "parking" two houses she owned. In other words, transferring ownership to her stepson and stepdaughter so she could qualify for a short sale on another home she owned on Lake Saint Clair in Grosse Pointe Park. 

The mortgage lender, ING Direct approved the short sale saving Hathaway $600,000. 

The feds issued a civil seizure on another home in Florida but put that on hold in December.  Weeks later the Bank Fraud charge was issued. 

The case is now in a procedural phase that must be completed before things can move forward. While the civil case about the home seizure is still on hold, it has been assigned to a judge in Ann Arbor.

Meanwhile, the bank fraud case has been assigned to a judge in Detroit.

The two judges must now confer and decide who will handle the combined case. Once that is done the case will be placed on their docket.