Michigan Supreme Court Justice Diane Hathaway, already stepping down Monday under a legal cloud, now is accused formally of bank fraud.
revealed last May by WXYZ investigative reporter Ross Jones. Livengood summarizes:
Hathaway and her husband, attorney Michael Kingsley, deeded a Florida home to Kingsley's daughter while trying to negotiate a short sale on a $1.5 million lakefront home they couldn't afford in Grosse Pointe Park.
The November 2011 short sale went through and erased any remaining debt they had with the bank, $600,000. The debt-free Windermere, Fla., home then went back into Hathaway and Kingsley's names after the sale.
The bank fraud charge says Hathaway made false statements to ING Direct, transferred property to others and failed to disclose available cash -- all in an effort to fool the bank into believing she had a financial hardship.
Though she's highly unlikely to draw a 30-year prison term, the maximum for bank fraud, Livengood quotes a Chicago attorney who predicts some time behind bars.
"Any bank robber who robs a bank with no gun and just a note goes away to prison. A judge who steals over half a million dollars should enjoy the same fate," said Lloyd Meyer, referring to the amount of debt written off after the short sale. "As a former federal prosecutor, it would be unthinkable to have this type of defendant get a slap on the wrist."
Her Detroit attorney, Steve Fishman, declined to comment Saturday, according to The News and other media.
