Diane M. Hathaway, Bank Fraud, Michigan 2013

A former Michigan Supreme Court Justice has been sentenced to prison for bank fraud. Diane M. Hathaway, 58, of Grosse Pointe, Michigan, was sentenced to one year and one day in federal prison for her role in a scheme to defraud ING Direct bank.

According to court documents, Hathaway knowingly engaged in a scheme to conceal assets from the bank to qualify for a 'short sale' between 2010 and 2011. A short sale is a forgiveness of debt by the bank to a borrower who claims financial hardship.

Hathaway was ordered to pay restitution in the amount of $90,000. She was also ordered to serve one year and one day in federal prison, a sentence that was handed down on no specific date found in source in the United States District Court for the Eastern District of Michigan.

United States Attorney Barbara L. McQuade said, 'We have made mortgage fraud a priority in this district because of the harm this crime causes to our housing markets in the aggregate. Homeowners who play by the rules should know that those who don't will be held accountable, no matter who they are.'

Michigan Attorney General Bill Schuette said, 'Public corruption scandals have damaged the public's trust in government and tarnished our state's reputation. No matter who you are or what position you hold, the same rules apply.'

Robert Foley, Special Agent in Charge of the FBI said, 'Regardless of a person's stature or position in life, we must all follow the same set of rules. In this case, an individual in a prominent position of public trust made extremely poor choices that have resulted in criminal activity.'

The case was investigated by the FBI with assistance from the Michigan Attorney General's Office.

Source: https://www.justice.gov/usao-edmi/pr/former-michigan-supreme-court-justice-diane-marie-hathaway-sentenced-bank-fraud-charge