MI Sup. Court justice accused of fraud

DETROIT (WOOD) - Federal authorities have filed a lawsuit accusing Michigan Supreme Court Justice Diane Hathaway of fraud in a real estate transaction.

Hathaway is not charged with a crime, but the government wants to seize her Florida home.

A lawsuit filed Monday in Detroit says Hathaway and husband Michael Kingsley put the home in the name of Kingsley's daughter while they tried to persuade a bank to allow a short sale on their home in Grosse Pointe Park.

The lawsuit says the Windermere, Fla., home was put back in the couple's hands after the short sale was approved. The government says ING Bank was unaware of the property shuffle.

The chief justice of the Michigan Supreme Court says allegations of bank fraud against Hathaway are a "dreadful development."

Chief Justice Robert Young Jr. says Justice Diane Hathaway or her attorney should "clear the air" and explain what happened.

Hathaway's attorney, Steve Fishman, declined to comment. Earlier Tuesday, before news of the lawsuit, Hathaway denied speculation that she was quitting the court.