Hathaway admits she committed bank fraud in federal court

Hathaway admits she committed bank fraud in federal court

Posted: Updated:
(Credit: WJBK|myFOXDetroit.com) Diane Hathaway outside court in Ann Arbor (Credit: WJBK|myFOXDetroit.com) Diane Hathaway outside court in Ann Arbor

By Charlie Langton
Fox 2 News


DETROIT (WJBK) -- Former Michigan Supreme Court Justice Diane Hathaway entered the federal courthouse innocently enough, but left a convicted felon.  She took a plea to bank fraud.

Here's the deal.  She will spend up to 18 months in a federal prison.  She will pay up to $90,000 in restitution, and she will pay a fine of approximately $30,000.  After that, she'll spend three to five years on supervised probation, and all the other charges against her will be dismissed.

"This is a crime that spanned almost two years, and so for a very serious, well thought out crime like that, I think it's important that the public see that people at the highest levels of government are held accountable," said U.S. Attorney Barbara McQuade.

Hathaway stated in open court that she devised a scheme to defraud the ING Bank and wrote a phoney hardship letter, hiding her true assets and manipulating property sales in order to get rid of a $600,000 debt on her Grosse Pointe Park home.

"It's important for people to know that now we're down to the actual loss as calculated by ING Bank, which, of course, is who we ought to listen to," said attorney Steve Fishman.  "They're saying it's between $40,000 and $90,000.  They haven't said anything more than that, and Judge O'Meara will decide."

"In this case an individual in a prominent position of public trust made extremely poor choices that have resulted in criminal activity," said FBI Special Agent Robert Foley.

Sentencing will be May 28.

  • Local NewsLocal NewsMore>>

  • Bruins win Game 2, even series with Wings 1-1

    Bruins win Game 2, even series with Wings 1-1

    Monday, April 21 2014 6:48 AM EDT2014-04-21 10:48:56 GMT
    Two power-play goals and stingy penalty killing ended the Boston Bruins' offensive drought and tied their playoff series.
    Two power-play goals and stingy penalty killing ended the Boston Bruins' offensive drought and tied their playoff series.
  • Clutch Cargo's returns to religious roots

    Clutch Cargo's returns to religious roots

    Monday, April 21 2014 6:39 AM EDT2014-04-21 10:39:29 GMT
    Clutch Cargo's, a southeastern Michigan church building that spent several years as a nightclub, reopened as a house of worship on Easter Sunday.
    Clutch Cargo's, a southeastern Michigan church building that spent several years as a nightclub, reopened as a house of worship on Easter Sunday.
  • Chrysler expanding presence in China

    Chrysler expanding presence in China

    Monday, April 21 2014 6:36 AM EDT2014-04-21 10:36:32 GMT
    Fiat and Chrysler announced plans this weekend to build three new Jeep models in China for that market, the biggest for the vehicles outside the United States, as they attempt to boost sales in a country where they lag behind their competitors.  
    Fiat and Chrysler announced plans this weekend to build three new Jeep models in China for that market, the biggest for the vehicles outside the United States, as they attempt to boost sales in a country where they lag behind their competitors.    
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices