Michigan Supreme Court Justice Diane Hathaway says she'll fight to keep house

(WXYZ) - Michigan Supreme Court Justice Diane Hathaway says she'll fight to keep her $750,000 Florida home that the U.S. Attorney is trying to seize. 

Earlier this month, the feds accused Hathaway and her husband of fraud, saying they "systematically and fraudulently transferred property" out of their names and hid assets in order to secure a short sale with their mortgage company.

The feds called it money laundering and said the shuffle helped forgive $600,000 in debt for the couple. Their probe into Hathaway was sparked by a 7 Action News Investigation .

Today, Hathaway denied the allegations, but did acknowledge that she and her husband did not tell their bank, ING, that they had recently transferred the property out of their names, and into a stepdaughter's.  It would later be moved back into Hathaway and her husband's names after the short sale went through.

Hathaway has not been charged with any criminal violations, even though the civil complaint says that criminal acts were committed.

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