Justice Hathaway back on the bench

(WXYZ) - Michigan Supreme Court Justice Diane Hathaway is back on the bench from the Thanksgiving holiday and for her, it is business as usual.

But for how long?

The 7 Action News Team first exposed questionable transactions months ago that saved Hathaway and her attorney husband big money.

On Wednesday, Hathaway returned to the bench for a brief public hearing on court rules and said nothing about her growing controversy.

Chief Justice Robert Young Jr. had earlier issued a statement urging Hathaway to clear the air, explain what she did.

This after the feds got involved and filed a civil lawsuit alleging fraud and money laundering against her and her husband Michael Kingsley.

The allegations center on a hardship letter they gave their mortgage lender in 2010 to qualify for a short sale on their home in Grosse Pointe Park.

That saved the couple $600,000 in mortgage debt.

But to qualify for the hardship, the couple put another home they own in Florida in the name of Kingsley's daughter.

So far, no criminal charges have been issued.  But the civil action could lead to a federal indictment.

The 7 Action News Team talked with Hathaway's attorney, Steve Fishman in Detroit. He declined comment.

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