Michigan Supreme Court Justice Guilty of Bank Fraud

Diane M. Hathaway, a former Michigan Supreme Court Justice, has pleaded guilty to committing bank fraud in connection with a property in Grosse Pointe Park, Michigan.
 
During a hearing before U.S. District Judge John Corbett O’Meara, Hathaway admitted that between 2010 and 2011 she knowingly engaged in a scheme to defraud ING Direct bank by concealing assets from the bank to qualify for a “short sale.” A short sale is a forgiveness of debt by the bank to a borrower who claims financial hardship. 

Based on her guilty plea and felony conviction for committing bank fraud Hathaway is facing a maximum of 30 years in prison, a fine of up to $1,000,000, and up to five years of supervised release.
 
United States Attorney Barbara 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."