Justice Diane Hathaway tells feds to keep hands off house - New York News

Justice Diane Hathaway tells feds to keep hands off house

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DETROIT (AP) -- A Michigan Supreme Court justice accused of bank fraud is denying any wrongdoing in her first formal response to a lawsuit that seeks to seize her Florida home.

Justice Diane Hathaway admits that she and her husband didn't disclose the transfer of a Florida house to a relative when they asked a bank to allow a short sale on their Detroit-area home. Hathaway says the bank didn't ask.

The federal government is suing Hathaway and husband Michael Kingsley, claiming they concealed the transfer of the Windermere, Fla., home so they could get the bank's OK to sell a Grosse Pointe Park home and erase $600,000 in debt.

In a court filing Friday, Hathaway and Kingsley don't explain why they transferred the Florida property and then got it back.     

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