Friday, August 16, 2013

Ex-Michigan High Court Justice Begins Prison Time At West Virginia's "Camp Cupcake" For Role In Using Short Sale Shuffle On Underwater Home To Hide $1M+ In Assets From Bank; Stay Expected To Be 9-10 Months On 366-Day Sentence

In Detroit, Michigan, The Detroit News reports:
  • Former state Supreme Court Justice Diane Hathaway arrived at a federal prison in West Virginia on Tuesday to serve one year and a day for bank fraud, a crime critics said brought shame to the state’s highest court.

    Hathaway, 59, is the latest celebrity inmate at the prison in Alderson, W.Va., dubbed “Camp Cupcakebecause of its mountainous setting and long list of perks, including access to washers, dryers, microwave ovens, hair dryers, curling irons and cosmetology areas where inmate-to-inmate pedicures and manicures are allowed.
  • The 366-day sentence will allow Hathaway to get time off for good behavior, meaning her time in custody likely will be nine to 10 months. A Federal Bureau of Prisons spokesperson confirmed the former justice’s arrival at the prison.

    Prosecutors said Hathaway engaged in an elaborate two-year fraud scheme involving a Grosse Pointe Park home. She pleaded guilty in January to one count of felony bank fraud, eight days after she resigned from the bench.

    Prosecutors said Hathaway hid assets worth more than $1 million and misled a bank while negotiating a short sale. A short sale is when the lender allows the sale of a home that is worth less than the amount owed.