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.

Print this article Back to Top