Michigan Supreme Court justice denies wrongdoing in bank fraud allegations

Justice Diane Hathaway responds to allegations of failing to disclose property transfer

Published On: Nov 30 2012 01:18:05 PM EST   Updated On: Nov 30 2012 01:31:50 PM EST
DETROIT -

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.

Read: Justice Hathaway's court response.

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.

Follow the Hathaway story from the beginning:

Feds accuse Mich. Justice Hathaway of real estate fraud.

Michigan justice tells staff she's not quitting.

Lawyer says Hathaway will fight to keep house.

Will justice Hathaway step down amid allegations of fraud?