Imprisoned Diane Hathaway Eligible for Home Detention

Convicted felon and ex-Michigan Supreme Court Justice Diane Hathaway is now eligilble for home detention after serving a portion of her sentence for bank fraud in a minimum-security federal prison known as "Camp Cupcake."

From the Detroit Free Press:

"Disgraced former Michigan Supreme Court Justice Diane Hathaway is eligible for home confinement now as she serves out her sentence on a bank fraud charge, according to a spokesman for the federal Bureau of Prisons.

Hathaway’s release date from the minimum security federal prison in Alderson, W.Va., known as Camp Cupcake, is officially set for June 26.

When asked whether Hathaway left the prison today as reported by WXYZ-TV (Channel 7), Bureau of Prisons spokesman Chris Burke said she is still the [']responsibility['] of Alderson officials. The bureau will not confirm whether someone has left a facility until that prisoner is in the new location. Technically, Hathaway has been eligible for a move to a halfway house for 11 months.

On April 29, U.S. District Judge John Corbett O’Meara denied Hathaway’s self-drafted motion filed in January to be released early or allowed to serve the rest of her sentence at home.

O’Meara sentenced Hathaway on May 28, 2013, to 12 months and one day in prison, plus two years probation, after she pleaded guilty to one count of bank fraud in connection with the short sale of her Grosse Pointe Park home. She reported to prison in August.

Investigators said Hathaway transferred the ownership of property in Florida to relatives so she could qualify for a short sale, a process whereby a bank allows a home to sell for less than the mortgage holder owes, typically when property values fall.

Hathaway’s short sale in Michigan erased nearly $600,000 in mortgage debt on the $1.5-million Grosse Pointe Park home on Lakeview Court that eventually sold for $850,000. The debt-free Windermere, Fla., home then went back into Hathaway’s name."