Michigan Supreme Court Justice (and former prosecutor) Diane Hathaway has resigned from the state’s highest court after a judicial agency accused her of “blatant and brazen violations” of judicial ethics that include allegations of bank fraud, tax fraud, money laundering and lying to investigators. The alleged facts are quite shocking and lead to the question of why Hathaway has not been charged criminally. In 2008, Hathaway launched a successful Democratic campaign to unseat conservative Chief Justice of the Court, Cliff Taylor. Her heavily negative campaign accused Taylor of failing asleep on the bench and declared “If you see justice in the name, he really belongs in the hall of shame.”
Federal prosecutors have been looking into Hathaway’s alleged effort to hide income and wealth to avoid a $600,000 mortgage debt. She is also accused for engineered a very shady short sale on a $1.5 million lakefront home.
The unprecedented action against Hathaway was taken after an investigation into the dealing of herself and her husband, attorney Michael Kingsley. Hathaway is accused of claiming to a bank in 2010 she was retiring — and would lose her $164,610 annual salary. In this way, Hathaway allegedly claims financial hardship to dodge the debt to ING Direct on her home. However, hardship is hard to make out with massive assets so investigators say that she and her husband transferred two homes to Kingsley’s children and Hathaway gave a third stepchild $195,000 cash to buy another home. Yes, you guessed it, she then moved into the home. Their prior home was transferred to Kingsley’s daughter on a short sale and then got it back in an exchange for $10.
There is a federal effort to seize the home as part of a civil forfeiture process. This is particularly ironic since Hathaway served as a Macomb County Assistant Prosecutor, 1987-1993, including service as Chief of the Drug Forfeiture Division.
Hathaway’s background including attendance at the Henry Ford Hospital School of Radiological Technology, 1972-74 and then attending Wayne State University, 1980-81. She received a BS in Health from Madonna College. She then received a law degree from the Detroit College of Law (now Michigan State University College of Law) in 1987.
Source: Detroit News