Michigan Justice Diane Hathaway likely to face criminal indictment

Hathaway accused of real estate fraud, likely to face criminal indictment from US Attorney's Office

Author: Mara MacDonald, Local 4 Reporter, @MaraMacDonald
Published On: Jan 07 2013 10:44:51 PM EST
Diane Hathaway graphic
DETROIT -

Michigan Supreme Court Justice Diane Hathaway 1 The worst is yet to come for Michigan Supreme Court Justice Diane Hathaway.

Sources tell Local 4 to expect a criminal indictment from the U.S. Attorney's Office over Hathaway's alleged shady real estate dealings.

The justice and her husband are accused of hiding assets, such as an expensive Florida home, to get a sweetheart short sale on their Grosse Pointe home.

The U.S. Attorney's Office already is going after Hathaway civilly and is in the process of trying to seize her Florida home.

Read more: Lawyer says Hathaway will fight to keep house

Andy Arena, director of the Detroit Crime Commission, explained the strategy of going after Hathaway civilly first.

"I think it's a little bit more difficult to go after property once you've attacked somebody criminally," Arena said. "This is probably the easier route to do it. And also it kind of affords you the opportunity for discovery, to kind of find out some behind-the-scenes details."

With federal investigators already breathing down her neck, the Judicial Tenure Commission is launching an investigation into Hathaway's behavior, which is announced Monday. Hathaway had an announcement of her own: she is retiring Jan. 21.

Read more: Commission wants Michigan justice suspended in fraud case

The move to retire safeguards her retirement but the JTC still can conduct proceedings against her.

Read more: Lawyer: Justice Diane Hathaway will retire Jan. 21

Diane Hathaway