Judge Recommends Ex-Justice Diane Hathaway Go to 'Camp Cupcake'

June 06, 2013, 12:37 AM by  Allan Lengel

The federal judge who sentenced ex-Supreme Court Justice Diane Hathaway to 1 year and 1 day in prison for bank fraud, is recommending she serve her time at a prison in Alderson, W. Va., known as "Camp Cupcake."

Ex-Detroit Council member Monica Conyers and Martha Stewart served time at the minimum-security women's facility that looks like a college campus and has no barbed wire.

U.S. District Judge John Corbett O'Meara signed off on a court document on May 3, saying:

The court makes the following recommendations to the Bureau of Prisons: Placement at Alderson, West Virginia
The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prison: as notified by the United States Marshal."

Hathaway, 59,  pleaded guilty in January 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, ING Direct.  The original mortgage was $1.4 million and the home was sold for $800,000 in the short sale.

Under the short sale,  the loss to the bank was approximately $100,000, according to the government. The government noted that she did bring $10,000 to the closing for the short sale as a closing fee, bringing the actual loss to $90,000. The judge agreed that the loss was $90,000 to the bank.

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