DETROIT – Prosecutors want disgraced ex-Supreme Court Justice Diane Hathaway to serve time behind bars for bank fraud.
In a sentencing memorandum filed Thursday in federal court, the U.S. Attorney’s office recommended that Hathaway serve 12 to 18 months under the sentencing guidelines. Sentencing is set for Tuesday at 2 p.m. in U.S. District Court in Ann Arbor.
“Such a sentence would serve to adequately punish the defendant for her methodical, thoughtful, and sophisticated criminal conduct that spanned over two years and caused approximately $100,000 in losses to a financial institution,” Assistant U.S. Attorneys Daniel L. Lemisch and Patrick Hurford wrote. “In addition, this sentence would deter the defendant and others from future criminal conduct and, in particular, economic crime.”
Hathaway, 58, pleaded guilty in January to a real estate scheme in which she transferred properties out of her name to make it look as if she had less assets, all so she could get a short sale on her Grosse Pointe Park home and get out of $600,000 she owed the bank, ING Direct. The original mortgage was $1.4 million and the home was sold for $800,000 in the short sale.
Under the short sale, the loss to the bank was approximately $100,000, according to the government. The government noted that she did bring $10,000 to the closing for the short sale as a closing fee, bringing the actual loss to $90,000.
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