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Michigan Supreme Court Judge Diane Hathaway Pleads Guilty to Bank Fraud

By Allan Lengel
Deadline Detroit

ANN ARBOR, Mich. — Diane Hathaway must have wanted to pinch herself, wake up from the nightmare and return to her prestigious perch in life, sitting on the state Supreme Court.

She couldn’t have imagined it would have ended like this.

But here she was, the daughter of a Detroit cop, educated in the city, standing in disgrace Tuesday morning in federal court in Ann Arbor, like a common defendant, pleading guilty to bank fraud as a gallery full of media members looked on including Ross Jones of WXYZ, who broke the story about her financial scheme. Her husband Michael J. Kingsley, an attorney, was also on hand as was U.S. Attorney Barbara McQuade.

U.S. District Judge John Corbett O’Meara set sentencing for May 28 at 2 p.m. She faces up to 18 months, but could conceivably get probation.

Hathaway pleaded guilty 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. The original mortgage was $1.4 million.

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