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Amid cloud, Michigan Supreme Justice Diane Hathaway to retire

Michigan Supreme Court Justice Diane Hathaway
Michigan Supreme Court Justice Diane Hathaway

LANSING, MI (WKZO) -- A State Supreme Court Justice who was under investigation for a real estate scheme has announced she will be retiring from the court later this month.  The announcement to her colleagues on the high court came on the same day that the State Judicial Tenure Commission handed down a 6 count complaint, charging Justice Diane Hathaway with fraud, money laundering, tax violations and misrepresenting facts to the JTC. 

It involves a complicated land deal, called a short sale that investigators say cost her lender $600,000.   She allegedly transferred ownership in two other homes to her children, permitting her to plead a hardship, execute the short sale and save a lot of money.

The FBI claims the children then gifted the other two homes back to her.   Her retirement would take effect on the 21st, but her lawyer says she will not be participating in any additional cases.   

The JTC is asking that she be suspended immediately.