LANSING (WKZO) -- Michigan Supreme Court Justice Diane Hathaway will retire January 21st amid bank fraud allegations.

Federal prosecutors accuse Hathaway and her husband, Michael Kingsley, of transferring ownership of a home in Florida to a relative in an attempt to avoid a 600,000-dollar mortgage debt on another residence the couple owned in Grosse Pointe Park.  According to a federal forfeiture complaint, the couple did not list their Florida property as an asset when they claimed financial hardship in a request for the short sale of their Michigan home.

Monday, the state Judicial Tenure Commission recommended Hathaway be suspended immediately and began formal proceedings to investigate the allegations, which she and Kingsley deny.