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Disgraced State Supreme Court Justice Sentenced for Short Sale Fraud

By
Industry Observer TN LIC# 290452

Disgraced Former Michigan Supreme Court Justice Diane Marie Hathaway

Sentenced on Bank Fraud Charge

U.S. Attorney’s Office May 2013
  • Eastern District of Michigan (313) 226-9100
 

The Former Michigan Supreme Court Justice,

Diane M. Hathaway

Diane Hathaway

was sentenced to one year and one day in federal prison.

She pleaded guilty in January to bank fraud .

At the time of the plea Hathaway admitted that, between 2010 and 2011, she engaged in a scheme to defraud ING Direct bank by concealing assets from the bank to qualify for a “short sale.”

Hathaway was ordered to pay restitution in the amount of $90,000.

This case was investigated by the FBI with the assistance of the Michigan Attorney General’s Office.

source: FBI
http://www.fbi.gov/detroit/press-releases/2013/former-michigan-supreme-court-justice-diane-marie-hathaway-sentenced-on-bank-fraud-charge?utm_campaign=email-Immediate&utm_medium=email&utm_source=fbi-in-the-news&utm_content=228705
 
 
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Time&Temp Memphis

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David Saks
Memphis, TN
Broker / Industry Analyst

Michael, in this case, justice was jailed.

May 30, 2013 12:53 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Keith, her attorney argued in court that Hathaway and her husband saved the bank $150,000 by negotiating a short sale of their home rather than letting it be sold at a foreclosure auction.

He said that ING Direct would have granted Hathaway and Michael Kingsley a short sale if ING had known about the other homes and cash to buy them.

Prosecutors filed a fraud charge because Hathaway deeded her Windermere, Fla., home, which was valued at $664,000, to her stepdaughter while she applied for the short sale — and then she got the house back after selling her Grosse Pointe Park home.

During the short sale, in 2010 and 2011, Hathaway bought two more homes with $363,000 she cashed out from her retirement accounts and transferred the homes to her stepchildren.

Hathaway's stepdaughter, Sarah Kingsley, transferred a home back to Hathaway after the short sale.

This is a great quote:

"Diane Hathaway was a crook who used her robes instead of a gun to rob a bank of tens of thousands of dollars," said Dan Pero, President of the American Justice Partnership.

"She then blatantly and repeatedly lied about her actions to deceive investigators and cling to power.

She is now going to jail and that's where she belongs."

Pero is a former member of the Michigan Judicial Tenure Commission (JTC), and filed the initial formal complaint against Hathaway with the JTC"

May 30, 2013 01:20 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Click this itsy bitsy red button and find out, Marc:

Real Estate Crimes

May 30, 2013 01:30 AM
David Saks
Memphis, TN
Broker / Industry Analyst

They qualify for the hoosgow, Brian.

May 30, 2013 01:34 AM
Roger Stensland
Keller Williams Realty Puget Sound - Maple Valley, WA
Let's Move!

It is always amazing to me that the people who we trust with making fair and impartial decisions on legal matters are often those who violate the laws for their own benefit.  I think that their penalty for violating the laws should be multiplied.  One year and a day seems way too light for this crime, especially when considered who broke the law.

May 30, 2013 01:36 AM
David Saks
Memphis, TN
Broker / Industry Analyst

By committing fraud, Richard.

May 30, 2013 01:37 AM
David Saks
Memphis, TN
Broker / Industry Analyst

It seems as though more crooks are in prison these days for real estate fraud than drug-related crimes, Richie (unless referring to Medicare fraud).

May 30, 2013 01:41 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Fewer get away with it, more get caught, Denise.

I don't believe that anyone really ever gets away with it.

It's a depraved financial crime. One of moral turpitude.

May 30, 2013 01:49 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Elected, appointed, greed-driven sworn officials break the law and violate the public trust of our nation everyday single day, Wayne and Jean Marie.

May 30, 2013 02:00 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Legislators rewrite the laws with their own nefarious system of principles and beliefs to accomodate their personal interests, Roger, to the exclusion of all others.

May 30, 2013 02:08 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

You would think a judge would know better.  I guess the appeal of the dollar was tooooo much.

May 30, 2013 02:15 AM
David Saks
Memphis, TN
Broker / Industry Analyst

She wasn't very good at real estate math, Ed and Celia.  She might do better counting the days in her cell.

May 30, 2013 02:20 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Awesome. Thanks for posting this and congratulations on the feature. Stupid Judge.

May 30, 2013 02:39 AM
David Saks
Memphis, TN
Broker / Industry Analyst

It's alarming just how many stupid, arrogant, negligent, dangerous judges there actually are, and have been, Nino.

Here's an interesting site:

JAIL 4 Judges

And this one:

Arrested Judges

May 30, 2013 02:53 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad
I read a few of these post last night thru the link you sent me. I would like to see some agents out of business.
May 30, 2013 03:08 AM
Venus Howard
Vindiola Group - Commerce City, CO
CDPE, CIAS, SFR, GRI

Wow - to err is human, but to be a fraud is well...I don't know.  thanks for sharing.

May 30, 2013 03:09 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Many of them are, Michael. Permanently.

May 30, 2013 03:14 AM
David Saks
Memphis, TN
Broker / Industry Analyst

To err is human.

To be a fraud is Jabba the Hut, Venus.

Jabba the Hut

May 30, 2013 03:19 AM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker
Oh man, I love it! Now, they need to go after the loan originators who fraud end the banks which got us in this mess.
May 30, 2013 03:38 PM
David Saks
Memphis, TN
Broker / Industry Analyst

I'm sure they will, Gary.

May 30, 2013 10:17 PM
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