Tuesday, January 29 2013 5:34 PM EST2013-01-29 22:34:38 GMT
Former Michigan Supreme Court Justice Diane Hathaway entered the federal courthouse innocently enough, but left a convicted felon. She took a plea to bank fraud.
Former Michigan Supreme Court Justice Diane Hathaway entered the federal courthouse innocently enough, but left a convicted felon. She took a plea to bank fraud.
By Charlie LeDuff Fox 2 News Reporter
GROSSE POINTE PARK, Mich. (WJBK) -- As if the feds weren't already hanging more paper than an interior decorator on suspect government officials out of Wayne County, Fox 2 has confirmed yet another grand jury investigation.
This time it's Michigan Supreme Court Justice Diane Hathaway, who told her bank she was too poor to live in tony Grosse Pointe Park, and the bank agreed.
So what's she doing living in tony Grosse Pointe Park?
This is a tale of four houses. Let's begin with the one of Lakeview where she lived with her husband, a successful slip and fall lawyer. They said they couldn't afford the $1.5 million mortgage and had to move out, so the bank allowed them to sell the home for about half of what they owed on it. That's called a short sale.
"You have to demonstrate a hardship, something that's changed in your life that no longer allows you to meet your obligations on a mortgage loan. What we see most commonly is a change in employment status, a change in marital status or some sort of health concerns," said real estate lawyer T. Scott Galloway.
But what hardship? She's got a job, he's got a job, and they own two other houses. The feds think this whole deal might be garbage.
Before she was approved for the short sale, she gave away one of her homes to her stepdaughter, a swanky pad in Florida with a boat dock worth three quarters of a million dollars. A house that they owned outright.
She also gave a home to her stepson just a stone's throw away from the short sale house. She paid $170,000 cash for it in 2010.
Last November, the short sale went through and Hathaway sold her $1.5 million mortgage to a guy for $850,000.
So Hathaway is homeless, right? Wrong. Yet another stepdaughter bought a house in Grosse Pointe Park for $200,000 just months before the short sale, and just a few months after the short sale that stepdaughter signed it over to the judge. Then the other stepdaughter after the short sale went through signed the Florida house back over to the judge.
One more thing. According to documents obtained by Fox News, the feds are looking at a possible tax fraud because when Hathaway owned the home that she gave to her stepson and the short sale house, tax breaks were claimed on both when you're only entitled to claim it on one.
Friday, June 7 2013 5:49 PM EDT2013-06-07 21:49:09 GMT
Secret surveillance allegations. Fudged murder statistics. Overworked, demoralized, ill-equipped, underpaid and disrespected officers forced to play purse snatcher. Can the new chief succeed in the face of such dysfunction?
Allegations of secret surveillance of the civilian police commissioner. Fudged murder statistics. Overworked, demoralized, ill-equipped, underpaid and disrespected police officers forced to play purse snatcher. Can the new chief, James Craig, succeed in the face of such dysfunction?
Thursday, June 6 2013 11:39 PM EDT2013-06-07 03:39:12 GMT
A stunt designed to test Detroiters' attention to detail went real bad, real quick. The experiment had an officer posing as a purse snatcher. Not factored into the scenario was an FBI agent who wasn't in on the plan.
A stunt designed to test Detroiters' attention to detail went real bad, real quick. The experiment had a Detroit police officer posing as a purse snatcher. Not factored into the scenario was an FBI agent who wasn't in on the plan.
Monday, June 3 2013 9:49 PM EDT2013-06-04 01:49:36 GMT
The new, half-finished Wayne County Jail may never be completed. Fox 2's Charlie LeDuff says the project is way over budget, and cost overruns could doom the nearly $200 million project.
The new, half-finished Wayne County Jail may never be completed. Fox 2's Charlie LeDuff says the project is way over budget, and cost overruns could doom the nearly $200 million project.
Monday, June 3 2013 6:24 AM EDT2013-06-03 10:24:23 GMT
I'd love to have a gorilla. Then I could have people over and say "Hey, check out my gorilla." A story about three Detroit jewels: The DIA, The Detroit Zoo and Belle Isle.
I'd love to have a gorilla. Then I could have people over and say "Hey, check out my gorilla." A story about three Detroit jewels: The DIA, The Detroit Zoo and Belle Isle.
Charlie LeDuff: Off The ChainCharlie LeDuff: Off The ChainMore>>
Monday, June 3 2013 6:24 AM EDT2013-06-03 10:24:23 GMT
I'd love to have a gorilla. Then I could have people over and say "Hey, check out my gorilla." A story about three Detroit jewels: The DIA, The Detroit Zoo and Belle Isle.
I'd love to have a gorilla. Then I could have people over and say "Hey, check out my gorilla." A story about three Detroit jewels: The DIA, The Detroit Zoo and Belle Isle.
Friday, May 3 2013 6:10 PM EDT2013-05-03 22:10:10 GMT
LeDuff: Let me offer a short list of things acting Bob Mayor Warfield can accomplish in his few remaining days in office. Things that could cement his legacy as one of Detroit's greats.
LeDuff: Let me offer a short list of things acting Bob Mayor Warfield can accomplish in his few remaining days in office. Things that could cement his legacy as one of Detroit's greats.
Sunday, April 21 2013 9:33 AM EDT2013-04-21 13:33:35 GMT
Coverage of the Boston Marathon bombings has been equally breathless and embarrassing. Spot reports from media outlets who once prided themselves on accuracy and reliability have been little better than Twitter feeds.
Coverage of the Boston Marathon bombings has been equally breathless and embarrassing. Spot reports from media outlets who once prided themselves on accuracy and reliability have been little better than Twitter feeds.
Monday, April 15 2013 7:21 AM EDT2013-04-15 11:21:31 GMT
I went to the dentist Friday morning and got my tooth drilled. My head was numb from the Novocain. I needed a place to hide where nobody would notice. I found it: Detroit city hall!
I went to the dentist Friday morning and got my tooth drilled. My head was numb from the Novocain. I needed a place to hide where nobody would notice. I found it: Detroit city hall!
Friday, April 5 2013 8:43 PM EDT2013-04-06 00:43:42 GMT
Unknown to the citizens, the police officers and even the emergency manager himself, Interim Detroit Police Chief Chester Logan was quietly conferred full chieftain status.
Unknown to the citizens, the police officers and even the emergency manager himself, Interim Detroit Police Chief Chester Logan -- as he has been called for the past five months since Chief Ralph Godbee was bounced from office -- was quietly conferred full chieftain status.
Monday, April 1 2013 9:07 AM EDT2013-04-01 13:07:47 GMT
Emmett Moten owns the Hotel Fort Shelby in Detroit. He owes $170,000 in back property taxes. He has until Monday at 5 p.m. to pay a portion of the back taxes or face foreclosure.
Emmett Moten owns the Hotel Fort Shelby in Detroit. He owes $170,000 in back property taxes. He has until Monday at 5 p.m. to pay a portion of the back taxes or face foreclosure.
Monday, March 25 2013 9:52 AM EDT2013-03-25 13:52:46 GMT
Imagine Captain Edward Smith of the Titanic summoning his pursers to the wheelhouse after his ill-fated ship struck the iceberg. "Quickly gentlemen!" he shouts. "Rearrange the deck chairs. Perhaps no one will notice!"
Imagine Captain Edward Smith of the Titanic summoning his pursers to the wheelhouse after his ill-fated ship struck the iceberg. "Quickly gentlemen!" he shouts. "Rearrange the deck chairs. Perhaps no one will notice!"
Monday, March 18 2013 10:12 AM EDT2013-03-18 14:12:24 GMT
Many people are concerned about Belle Isle's future. The EFM is promising not to make any hasty decisions and to review the numbers first, but that could be a problem. There is no Belle Isle budget.
Now that Detroit has an emergency financial manager, a lot of people are concerned about the future of Belle Isle. Kevyn Orr is promising not to make any hasty decisions and to look over the numbers first, but that could be a problem. There is no Belle Isle budget.
