Michigan Supreme Court Justice Charged with Defrauding Bank

Accused of hiding assets to justify a short sale to erase mortgage debt

DETROIT — Federal authorities are seeking the forfeiture of a Florida home owned by Michigan Supreme Court justice accused of defrauding a bank and hiding assets to justify a short sale.

U.S. Attorney Barbara McQuade's office filed a civil complaint that says Justice Diane Hathaway and her husband, lawyer Michael Kingsley, transferred the home in Windermere, Fla., to Kingsley's daughter before seeking a short sale of a home in Michigan.

The short sale allowed Kingsley and Hathaway to erase nearly $600,000 in mortgage debt on a $1.5 million house in Grosse Pointe Park, Mich., which sold for $850,000, according to public records.