Feds claim: Justice Hathaway Defrauded Bank of $600,000

**Packman41** · November-21-12, 08:17 AM

From the Wednesday morning Detroit News:

http://www.detroitnews.com/article/2...text|FRONTPAGE

“The civil complaint claims she hid assets in effort to avoid mortgage debt.

The U.S. government is seeking forfeiture of Michigan Supreme Court Justice Diane Hathaway's posh second home in suburban Orlando, Fla., claiming she and her husband hid the asset to defraud a bank and escape $600,000 in mortgage debt.

U.S. Attorney Barbara McQuade's civil complaint filed Monday claims the justice and her husband, attorney Michael Kingsley, "systematically and fraudulently transferred property and hid assets in order to support their claim to [[ING Direct) that they did not have the financial resources to pay the mortgage on the Michigan property."

News of the complaint, first reported Tuesday on detroitnews.com, came as Hathaway and her attorney spent the day tamping down rumors she's going to resign from the high court because of an FBI investigation of her real estate transactions.

The federal complaint alleges Hathaway and Kingsley engaged in bank fraud and money laundering, but neither has been charged criminally.”

Kudos to the Investigative Team at WXYZ-TV for breaking this story last May – 6 months before the wheels of justice began to move.

My question is why she and her husband are not being charged criminally.

**Scottathew** · November-21-12, 09:02 AM

What a fraud. She should see jail time for what she's done. She needs to resign.

**GPCharles** · November-21-12, 09:27 AM

Did she file a gift tax return when she deeded the property to her children/step-children?

**bailey** · November-21-12, 10:04 AM

Originally Posted by 48091

What a fraud. She should see jail time for what she's done. She needs to resign.

What's funny is that she married into the Hathaway family and has been getting elected and re-elected on that name long after she divorced out of it. Ole "Half a Day" Hathaway created quite the judicial dynasty.

**Det_ard** · November-21-12, 12:43 PM

I was curious which party she was affiliated with because all the news reports I heard on WDET and WUOM didn't say. A little googling reveals her to be a Democrat. Should have known. Not because a Republican wouldn't pull that type of scammy stuff [[corruption isn't the province of just one party) but because if it were a Republican justice like Markman, the party affiliation would be front and center on public radio news.

**DetroitHabitater** · November-21-12, 12:49 PM

Send a message: You can't be a judge and be criminal in your own life.

Send her to the slammer!

**bailey** · November-21-12, 01:00 PM

Originally Posted by Det_ard

I was curious which party she was affiliated with because all the news reports I heard on WDET and WUOM didn't say. A little googling reveals her to be a Democrat. Should have known. Not because a Republican wouldn't pull that type of scammy stuff [[corruption isn't the province of just one party) but because if it were a Republican justice like Markman, the party affiliation would be front and center on public radio news.

All you would need to know about her party affiliation was to know what county in which she served as judge. I took it as total common knowledge that she was a democrat.

and p.s. every article I've seen... reads thusly

Hathaway, a Democratic Party-nominated justice,

and they just did the Headlines on Wdet, and noted her party affiliation...repeatedly.

**Honky Tonk** · November-21-12, 01:49 PM

"and they just did the Headlines on Wdet, and noted her party affiliation...repeatedly."

Maybe he listens to a diffrent WDET?

**leapfrog** · November-21-12, 01:52 PM

Originally Posted by Det_ard

I was curious which party she was affiliated with because all the news reports I heard on WDET and WUOM didn't say. A little googling reveals her to be a Democrat. Should have known. Not because a Republican wouldn't pull that type of scammy stuff [[corruption isn't the province of just one party) but because if it were a Republican justice like Markman, the party affiliation would be front and center on public radio news.

The piece I heard this morning on WUOM made it quite clear that she is a Democrat.

**leapfrog** · November-21-12, 01:53 PM

Originally Posted by Honky Tonk

"and they just did the Headlines on Wdet, and noted her party affiliation...repeatedly."

Maybe he listens to a diffrent WDET?

Based on the way he phrased his post, I would think he has some preconceived notions about Public Radio in general. You know, more of that tired liberal media BS

**Bham1982** · November-21-12, 01:55 PM

Is this the woman who "moved" to GP Farms, just so she would be eligible for election in Wayne County, while keeping her primary residence in Birmingham?

**swingline** · November-21-12, 02:09 PM

Originally Posted by Bham1982

Is this the woman who "moved" to GP Farms, just so she would be eligible for election in Wayne County, while keeping her primary residence in Birmingham?

No Bham, Diane is a former Wayne County judge. I think that you are referring to the latest Hathaway, i.e., Dana, to be elected to the Wayne County bench. I think that there are now five people named Hathaway on circuit court there. And yes, the latest Hathaway is in real estate trouble as well due to her attempt to avoid taxes by claiming the homestead exemption on multiple homes.

**Honky Tonk** · November-21-12, 03:00 PM

"I think that there are now five people named Hathaway on circuit court there."

This has got to be confusing for people. "You're going to be appearing in front of Judge Hathaway...."

**Cincinnati_Kid** · November-21-12, 04:20 PM

Crooks come in all forms. Seems like everyone in the "D" is corrupt.

**marshamusic** · November-26-12, 03:58 AM

Yep, it seems like it, but we're not.

**Strong** · November-26-12, 01:56 PM

She doesn't claim that she lives in the D just fond of the D. She's not corrupt, any civil minded person would have tried have she tried, especially under the premise to save hundreds of thousands of dollars.
I lied on my taxes when I sold a t-shirt without charging sales tax and not claiming the revenue on my income tax, I didn't have my receipt book with me at the time and it was only one t-shirt or maybe a sweatshirt I don't remember and I feel bad for it.

**DetroitHabitater** · November-26-12, 02:05 PM

Originally Posted by Strong

She doesn't claim that she lives in the D just fond of the D. She's not corrupt, any civil minded person would have tried have she tried, especially under the premise to save hundreds of thousands of dollars.

Nope, I know a lot of civil minded people who lost their houses without trying criminal options. And none of them were judges.

**Cincinnati_Kid** · November-27-12, 11:03 AM

Originally Posted by Strong

She doesn't claim that she lives in the D just fond of the D. She's not corrupt, any civil minded person would have tried have she tried, especially under the premise to save hundreds of thousands of dollars.
I lied on my taxes when I sold a t-shirt without charging sales tax and not claiming the revenue on my income tax, I didn't have my receipt book with me at the time and it was only one t-shirt or maybe a sweatshirt I don't remember and I feel bad for it.

Are you kidding me? She's a freakin judge that sentences people for crimes and commits one herself. She is suppose to set an example especially being a judge , not as someone who dupes the system. I bet she thought with her power, influence and last name, she could get away with it. I heard she put the property in her kid's name, then transferred it back to her name sometime there after. Comparing a freakin T-shirt to a $600,000 house, is a horrible analogy. Common folk couldn't get away with it, neither should she. I hope they nail her.

**Det_ard** · November-27-12, 03:36 PM

Originally Posted by leapfrog

Based on the way he phrased his post, I would think he has some preconceived notions about Public Radio in general. You know, more of that tired liberal media BS

Well, I have my radio/computer tuned to one of our local public radio stations for 3-6 hours per day, and have for at least a decade. The extent to which I believe there is a lack of ideological diversity in public radio is informed by direct observation and knowledge of the hosts, anchors and guests. You may disagree with my opinion, but it is an opinion based on experience.

I'm happy to hear they identified the judge's party affiliation. I can assure you they were not doing so initially. I've been out of town for the holiday, dare I hope that an email I sent had some effect?

**Cincinnati_Kid** · November-27-12, 11:28 PM

Originally Posted by Det_ard

Well, I have my radio/computer tuned to one of our local public radio stations for 3-6 hours per day, and have for at least a decade. The extent to which I believe there is a lack of ideological diversity in public radio is informed by direct observation and knowledge of the hosts, anchors and guests. You may disagree with my opinion, but it is an opinion based on experience.

I'm happy to hear they identified the judge's party affiliation. I can assure you they were not doing so initially. I've been out of town for the holiday, dare I hope that an email I sent had some effect?

Sounds like the "Red Eye" radio network. Those guys are a freakin trip.

**Bobl** · January-18-14, 07:48 PM

Former State Supreme Court Judge commits bank fraud involving hundreds of thousands of dollars. Gets a year. After six months, requests early out because she was "denied equal protection under law", and has rehabilitated. Offers attendance at yoga classes and sweating to the oldies at Camp Cupcake as proof of rehabilitation.
How many years did the fools who were convicted of robbing banks of a thousand dollars get?

**One Shot** · January-18-14, 08:45 PM

What a crock!!! BS

**lpg** · January-18-14, 09:27 PM

2 sets of rules. One for the well connected, another for the rest of us.

**MikeyinBrooklyn** · January-18-14, 11:20 PM

She sure is a class act. She does want early release; doesn't mean that she will get it. And I wish they didn't have those damn country club jails.

**coracle** · January-19-14, 12:41 PM

One Judge defrauds the Bank for $600k and goes to jail; another Judge with the approval of a City behind him is stiffing the Bank for up to $230/165 Mil. and is getting accolades for it. It's called "justice" when it's done in the open.