Tuesday, January 29, 2013

Hathaway expected to plead guilty to bank fraud charge

Lansing — Former Supreme Court Justice Diane Hathaway is to get her day in court today.

After 20 years on the Wayne County and Supreme Court benches, Hathaway is scheduled to stand before a federal judge at 10:30 a.m. in Ann Arbor and is expected to plead guilty to a felony bank fraud charge.

Hathaway is accused of concealing assets and transferring homes to stepchildren in a scheme to get mortgage lender ING Direct to forgive $600,000 owed on a $1.5 million Grosse Pointe Park home and unload the lakefront property on a November 2011 short sale.

After the hearing, U.S. Attorney Barbara McQuade is planning a 2 p.m. press conference in Detroit to discuss the case. State Attorney General Bill Schuette is expected to attend.

Hathaway, a 58-year-old mother of five, faces up to 33 months in prison under federal sentencing guidelines for bank fraud, though her criminal defense attorney, Steve Fishman, will likely argue her actions did not harm the bank's bottom line.

By Chad Livengood
From The Detroit News:

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