Michigan Supreme Court Justice Under FBI Investigation in Alleged Mortgage Swap

Steve Neavling

 Michigan Supreme Court Justice Diane Hathaway is under investigation over a suspicious $1.5 million real estate deal, the Detroit Free Press reports.

Citing a source familiar with the probe, the Free Press says the FBI is investigating how Hathaway eliminated $600,000 in mortgage debt on the waterfront home in suburban Grosse Pointe Park.

The FBI said the alleged scheme involved the judge transferring properties to relatives and then selling the $1.5 million house in a short sale for $850,000.

A former metro Detroit FBI chief, Andrew Arena, told the Free Press that swapping properties is a common mortgage fraud scheme.

Hathaway and her attorney declined to comment.


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