Lawyer: Spare former Michigan justice prison

May 21, 2013 at 3:36 PM
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DETROIT, May 21 (UPI) -- Prosecutors say a former Michigan Supreme Court justice should do some time for defrauding the bank that held the mortgage on her home.

Diane Hathaway is scheduled to be sentenced next Tuesday. Her lawyer submitted written arguments Monday to a federal judge in Detroit, The Detroit News reported.

Hathaway has admitted she gave the bank false information when she sought authorization for a short sale on her home in Grosse Pointe Park. The bank has said it would have allowed the short sale, agreeing to take less than the full amount owed on the mortgage, even if Hathaway had told the truth.

Steve Fishman, her lawyer, argued Monday that the bank lost less than $70,000 to the fraud and said Hathaway has made restitution. He said she has already suffered considerable punishment.

"She has lost a job she loved, and given up her law and real estate licenses," he said. "She has been publicly humiliated."

U.S. Attorney Barbara McQuade says she plans to aks U.S. District Judge John Corbett O'Meara to impose a sentence of a year to 18 months. McQuade also argues Hathaway should pay a substantial fine, $30,000.

Hathaway was elected to the Supreme Court in 2008. She resigned in January, shortly before she pleaded guilty to a single count of felony bank fraud.

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