Diane Hathaway Pleads Guilty To Bank Fraud

By: WILX
By: WILX

A former Michigan Supreme Court justice has pleaded guilty to bank fraud in a scandal that ended her career on the state's highest court.

Democrat Diane Hathaway pleaded guilty Tuesday in Ann Arbor federal court and faces 1 1/2 years in prison under a deal with prosecutors. She resigned last week.

Prosecutors say Hathaway and her husband transferred a debt-free Florida home to a relative so that they'd qualify to short sell a Grosse Point Park home that carried a big mortgage. After they unloaded the Michigan property in a 2011 short sale, the Florida property was transferred back to them.

Hathaway's husband wasn't charged.

In short sales, banks let distressed owners sell property for less than what's owed on it.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Charlene Location: Jackson on Jan 29, 2013 at 07:24 PM
    Does she get to keep her wonderful judge pension and medical coverage at our expense? Must be nice to working the system!!!!
  • by Ray Location: Reading, MI on Jan 29, 2013 at 11:20 AM
    Why should a sitting judge be any different from everyone else. If they committed the crime and are found guily then by all means they must serve the prison time.
  • by mike Location: lansing on Jan 29, 2013 at 08:59 AM
    Jail time ya right we'll see,& her husband wasn't involved ya right.
  • by Name Location: Location on Jan 29, 2013 at 08:48 AM
    Another liberal judge for you. Thinking they can rewrite the laws to fit them.
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