Tagged: fraud

Former Michigan Supreme Court Justice Diane Hathaway was sentenced for bank fraud in federal court today in Ann Arbor.

Hathaway was forced to resign in January, halfway through her eight-year term on the state Supreme Court.

She resigned before pleading guilty to a scheme to cheat a bank by hiding assets including a vacation home in Florida.

That helped her qualify as a distressed homeowner, so she could then sell a lakefront home in Grosse Pointe Park as a short-sale.

Rick Pluta, Lansing Bureau Chief for the Michigan Public Radio Network, has been covering this story for us, and he joined us today in the studio.

Listen to the full interview above.

State Supreme Court Justice faces sentencing

Former Michigan Supreme Court Justice Diane Hathaway is due in court today to be sentenced for fraud. Hathaway was forced to resign in January when she pleaded guilty to a scheme to cheat the bank by hiding assets.  Hathaway’s attorney is asking that she be allowed to perform community service and pay thousands of dollars in fines; however, federal prosecutors have asked for prison time of 12 to 18 months. Michigan Radio's Rick Pluta has more.

Benton Harbor EM believes deficit will be eliminated in one year

Tony Saunders, the emergency manager of Benton Harbor, says elected leaders are likely to regain control within a year when the city's structural deficit will be eliminated. Michigan Radio’s Lindsey Smith reports Benton Harbor’s new emergency manager says he’s cut more than a million dollars from the budget in just three months.

Senator Debbie Stabenow's farm bill is headed to the senate

Senator Debbie Stabenow will rally in West Michigan this week. She's trying to get farmers to pressure lawmakers to pass her new farm bill to funds crop insurance programs and research to help fight invasive insects. Last year the Senate passed the farm bill but it died in the House. The Senate is expected to vote on the farm bill early next month.

FLINT, Mich. (AP) - An insurance company says more than a dozen people operated an arson-for-profit ring in Flint that collected more than $2 million over two decades.

The Flint Journal reports State Farm Insurance says in a lawsuit in Detroit federal court that fires purposely were started at homes owned or rented by members of the group. The insurer says insurance claims were filed to receive thousands of dollars in insurance payouts.

No criminal charges have been filed against any of those named the case.

The case has sparked counter lawsuits by some of the defendants. Six of those named in the State Farm lawsuit have settled, including Flint-based public adjustment company Allied and Associates and Gary Lappin, its president. He calls the case "witch hunt."

State Farm isn't discussing the case.