Michigan Supreme Court Justice Retires After Accusations of Bank Fraud

Mark J. Mandell, Esq.

Amidst federal charges of bank fraud, Diane Hathaway has filed for retirement, stepping down from her post as Michigan Supreme Court Justice. The charge was filed Friday as a “criminal information,” which means it was negotiated and that a guilty plea is expected in federal court. As a result, Hathaway faces the loss of her law license and time in prison.

In order to convince a lender that she qualified for a short sale on her $1.5 million home in Grosse Pointe, Hathaway concealed her ownership of a Florida home by placing the home in husband’s daughter’s name. As a result, the short sale went through in November 2011 and erased the $600,000 debt they had with the bank. Following the short sale, the Florida home was transferred back to Hathaway in March 2012. Hathaway has refused to make any public comments explaining the transactions; instead, she claims that the property shuffle was a private matter.

Now, the judge that sentences her must be concerned with the message that is sent by his decision: “Do you cut a break to a sitting Supreme Court Justice who has to know better?” Peter Henning, a professor at Wayne State University Law School, asked. The maximum penalty for bank fraud is 30 years in prison. While such an extreme sentence seems rare, Hathaway should expect some time in custody. Former federal prosecutor Lloyd Meyer of Chicago believes it “would be unthinkable to have this type of defendant get a slap on the wrist.”

Governor Rick Snyder plans to appoint a replacement. Last year, the Michigan Judicial Selection Task Force made a recommendation for the process, suggesting that when a vacancy occurs on the Michigan Supreme Court, a non-partisan panel should screen candidates and then submit three to five choice from which the governor could choose. As of late, Governor Snyder is conducting his own search, hoping to appoint a replacement sooner rather than later.

Chief Justice Young called the scandal one that “diminishes the public’s trust in government.” Hopefully, Synder’s newest appointee will help to rebuild this trust.

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

 

To learn more and read the original article, please visit: http://www.clickondetroit.com/news/Michigan-Justice-Diane-Hathaway-retires-amid-bank-fraud-charges/-/1719418/18211054/-/msqdmv/-/index.html

Michigan Supreme Court Justice Charged with Real Estate Fraud

Diane Hathaway, Michigan Supreme Court Justice, may be facing political pressure to resign, but it seems she will not go down without a fight. Accused of real estate fraud, Hathaway may face criminal charges.

In 2010, Hathaway and her husband, attorney Michael Kingsley, contacted ING Bank in pursuit of a short sale on their Grosse Point Park home, a transaction in which a bank and borrower agree to sell a property for less than what is owed on the mortgage.

The hardship letter sent to ING Bank, however, failed to disclose the recent transfer of their Florida home to Kingsley’s daughter. As Hathaway claimed she did not possess the financial resources necessary to pay the mortgage on her Michigan property, her Florida residence seemed to have been hidden away. After the short sale of the Gross Pointe home, resulting in the erasure of over $600,000 in mortgage debt, the Florida home was quietly transferred back into Hathaway’s name.

Federal authorities filed a lawsuit to seize Hathaway’s Florida residence, accusing her of hiding real estate while persuading a bank to allow the short sale of her Gross Point residence. Hathaway and Kingsley, however, will have the chance to challenge the government in this forfeiture action.

While Michigan Chief Justice Robert Young Jr. urged Hathaway to make a statement, clearing the air and explaining the transactions, Hathaway declined to speak publicly. Matt Frendewey, spokesman for the Michigan Republican Party, pushed for Hathaway’s resignation: “Her actions are offensive to the many Michigan families who have faced difficult times during Michigan’s economic downturn.”

If you have real estate or fraud issues, contact Fausone Bohn, LLP at (248) 380-0000.

To learn more and see the original article, please visit: http://abcnews.go.com/US/wireStory/feds-accuse-michigan-judge-real-estate-fraud-17773202#.ULTCpeRlGqg and http://www.freep.com/article/20121122/NEWS06/311220087/State-Supreme-Court-Justice-Diane-Hathaway-fights-keep-home-amid-scandal-denies-rumors-resigning