Former Michigan Supreme Court Justice Pleads Guilty to Bank Frau - Northern Michigan's News Leader

Former Michigan Supreme Court Justice Pleads Guilty to Bank Fraud

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Former Michigan Supreme Court Justice, Diane Hathaway pleaded guilty to bank fraud, in a scandal that ended her career on the State's highest court.

Hathaway faces 1 1/2 years in prison, under a deal with prosecutors.

She resigned last week.

Prosecutors say, Hathaway and her husband transferred a debt-free Florida home to a relative, so that they would qualify to "short-sell" a Gross Point Park home that carried a big mortgage.

In short sales, banks let distressed owners sell property for less than what is owed on it.