Ex-Mich. Supreme Court Justice Hathaway given prison sentence

Ex-Mich. Supreme Court Justice Diane Hathaway given prison sentence

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Former Michigan Supreme Court Justice Diane Hathaway outside federal court in Ann Arbor after her sentencing. Former Michigan Supreme Court Justice Diane Hathaway outside federal court in Ann Arbor after her sentencing.
ANN ARBOR, Mich. (WJBK) -

A former Michigan Supreme Court justice has been sentenced to prison. Diane Hathaway will spend one year and a day behind bars for bank fraud.

Hathaway came to court with a teary apology and $90,000 hoping that would be a get out of jail free card, but in the end the judge said Hathaway still has to go to prison.

Hathaway is accused of concealing assets and shuffling properties to mislead her bank into approving a short sale on a Grosse Pointe Park home to get rid of a $600,000 mortgage debt.

The bank said they actually only lost $90,000, which Hathaway paid in full on Tuesday. The prosecution said that was just more proof she had the money to pay her mortgage in the first place.

Records showed Hathaway deeded a Florida home to her stepdaughter in November of 2010 and transferred a Grosse Pointe Park home into her son's name. Then the Florida home valued at more than $500,000 was transferred back to Hathaway in March 2012.

The Judicial Tenure Commission revealed Hathaway gave nearly $200,000 to her husband's daughter to purchase another Grosse Pointe Park home. Just a few weeks later, that house was signed over to Hathaway.

After her sentencing, hiding her eyes behind big, dark glasses, a red-faced Hathaway forced her way through a line of media outside the federal courthouse in Ann Arbor. She had no comment.

"I know her family loves her, and I'm sure they are disappointed at the result," said Steve Fishman, her attorney.

Tuesday he asked the judge to show leniency to his client, saying that she like so many Americans was a victim of the crashing housing market. He said she "manned up" by accepting responsibility and that her name and career were ruined, which was punishment enough.

Judge John O'Meara disagreed, citing her real estate and law license as proof she knew exactly what she was doing.

None of Hathaway's friends or family were in court except her husband. She said she wanted to spare them any more embarrassment.

It is not yet known when Hathaway will report to prison.

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