LANSING, Mich. - Former Michigan Supreme Court Justice Diane Hathaway was sentenced Tuesday to one year and one day in prison for her bank fraud conviction.
Moreover, Hathaway will have to pay $90,000 in restitution. She concealed assets while urging a bank to allow a short sale on a lakefront home in Grosse Pointe Park.
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 Pointe 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.
Read more: Hathaway lawyer: Don't lock her up for fraud
In short sales, banks let distressed owners sell property for less than what's owed on it.
Hathaway quit the Supreme Court in January, a week before pleading guilty. In a court filing, her attorney, Steve Fishman, says it's a serious crime but not one that threatened the banking system. He says Hathaway has been publicly humiliated and given up her law and real estate licenses.
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