Former Supreme Court Justice Diana Hathaway sentenced for fraud conviction Tuesday

Hathaway hid assets while urging bank to allow short sale on home in Grosse Pointe Park

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LANSING - Former Supreme Court justice Diane Hathaway will find out Tuesday whether she'll spend any time behind bars for her bank fraud conviction.

She concealed assets while urging a bank to allow a short sale on a lakefront home in Grosse Pointe Park, near Detroit.

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.
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.

Prosecutors haven't filed a sentencing memo yet but have said some prison time seems appropriate. She could be sentenced to 1 1/2 years in prison.


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