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, May 17 2013 5:25 PM EDT2013-05-17 21:25:50 GMT
Following Minister Louis Farrakhan's message on Friday, Fox 2's Charlie LeDuff hit the streets to scrounge around for some available investment properties, and guess what he found?
Following Minister Louis Farrakhan's message on Friday, Fox 2's Charlie LeDuff hit the streets to scrounge around for some available investment properties, and guess what he found?
Thursday, May 16 2013 7:45 PM EDT2013-05-16 23:45:45 GMT
Fox 2's Charlie LeDuff attended a Detroit City Council meeting. On the agenda, some questions about a developer who is being allowed to take his time paying back a $19-million dollar loan.
On Thursday, Fox 2's Charlie LeDuff attended a Detroit City Council meeting. On the meeting agenda, some questions about a developer with connections to city hall who received a letter that told him he was allowed to take his time paying back a $19-million dollar loan.
Wednesday, May 15 2013 11:16 PM EDT2013-05-16 03:16:04 GMT
Dave Bing might run for Wayne County executive, but a condition is the officer holder must be a county resident. Charlie LeDuff decides to help his old buddy out with a few options on where he can live.
Dave Bing might run for Wayne County executive, but a condition is the officer holder must be a county resident. Charlie LeDuff decides to help his old buddy out with a few options on where he can live.
Tuesday, May 14 2013 7:06 PM EDT2013-05-14 23:06:18 GMT
It has been six weeks since two Detroit police officers were wounded and a suspect killed during a shootout. Now some questions have arisen and they involve Detroit EMS. Fox 2's Charlie LeDuff reports.
It has been six weeks since two Detroit police officers were wounded and a suspect killed during a shootout. Now some questions have arisen and they involve Detroit EMS. Fox 2's Charlie LeDuff reports.
Wednesday, May 8 2013 6:25 PM EDT2013-05-08 22:25:04 GMT
FOX 2 has confirmed that 101-WRIF Radio morning show hosts "Drew and Mike" will be replaced by Dave and Chuck of the Freak, the former 89X duo. The last 'Drew and Mike" broadcast is scheduled for May
The last WRIF 'Drew and Mike' show will be May 17 after the duo's contract was not renewed. Fox 2's Charlie LeDuff gets an exclusive interview in the parking lot of WRIF studios.
Monday, May 20 2013 10:42 PM EDT2013-05-21 02:42:18 GMT
Omar Morales feels lucky to be here for his son Joshua's 10th birthday on Monday. Morales was one of the passengers on board a USAir flight that made an emergency landing at Newark Liberty.
Omar Morales feels lucky to be here for his son Joshua's 10th birthday on Monday. Morales was one of the passengers on board a USAir flight that made an emergency landing at Newark Liberty.
Monday, May 20 2013 10:28 PM EDT2013-05-21 02:28:23 GMT
After Assemblyman Vito Lopez resigned over claims of serial sexual harassment of female staffers, attention turned to whether powerful Assembly Speaker Sheldon Silver should continue his leadership.
After Assemblyman Vito Lopez resigned over claims of serial sexual harassment of female staffers, attention turned to whether powerful Assembly Speaker Sheldon Silver should continue his leadership.
Monday, May 20 2013 7:05 PM EDT2013-05-20 23:05:15 GMT
A private country club opened its golf course to the public for a charity tournament to raise money for Superstorm Sandy relief. The Westlake Golf and Country Club in Jackson hosted the event on May 13,
A private country club opened its golf course to the public for a charity tournament to raise money for Superstorm Sandy relief. The Westlake Golf and Country Club in Jackson hosted the event on May 13,
Monday, May 20 2013 6:30 PM EDT2013-05-20 22:30:03 GMT
Repair work on tracks that were damaged in last week's train collision has progressed quickly enough that the MTA predicts restoring full service along the New Haven line by Wednesday morning.
Repair work on tracks that were damaged in last week's train collision has progressed quickly enough that the MTA predicts restoring full service along the New Haven line by Wednesday morning.
Monday, May 20 2013 6:05 PM EDT2013-05-20 22:05:22 GMT
A spate of hate-fueled attacks on gay men in New York, including a killing in the heart of one of its most gay-friendly neighborhoods, is stirring up anxiety, disbelief and outrage.
A spate of hate-fueled attacks on gay men in New York, including a killing in the heart of one of its most gay-friendly neighborhoods, is stirring up anxiety, disbelief and outrage.
Monday, May 20 2013 5:32 PM EDT2013-05-20 21:32:24 GMT
As a family prepared for the funeral of a Hofstra junior killed by a cop's bullet during a standoff with an armed intruder, questions remain about how police handled the situation.
As a family prepared for the funeral of a Hofstra junior killed by a cop's bullet during a standoff with an armed intruder, questions remain about how police handled the situation.
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.
Tuesday, March 12 2013 2:19 PM EDT2013-03-12 18:19:44 GMT
LeDuff: I don't know if an emergency manager can work in the city of Detroit. If anyone says different, they are lying. But I have to agree with one Detroiter's view, "Anything's better than what we've got right now."
LeDuff: I don't know if an emergency manager can work in the city of Detroit. If anyone says different, they are lying. But I have to agree with one Detroiter's view, "Anything's better than what we've got right now."
Monday, May 20 2013 7:30 PM EDT2013-05-20 23:30:05 GMT
There are new developments in the murder of a young woman in Grosse Pointe Park. Police have a person in custody in connection with the death of Sabrina Gianino, who was found strangled last week.
There are new developments in the murder of a young woman in Grosse Pointe Park. Police have a person in custody in connection with the death of Sabrina Gianino, who was found strangled last week.
Monday, May 20 2013 11:08 PM EDT2013-05-21 03:08:56 GMT
A small dog was taken from a woman's car on Sunday. Now a woman claims she wasn't trying to steal the dog. She was trying to save its life because it was locked in a car on a hot day.
A small dog was taken from a woman's car on Sunday. Now a woman claims she wasn't trying to steal the dog. She was trying to save its life because it was locked in a car on a hot day.
Monday, May 20 2013 11:03 PM EDT2013-05-21 03:03:59 GMT
Some residents in Clinton Township say they are upset over a horrible smell that seems to be at its peak when temperatures soar. They claim it has been going on for years.
Some residents in Clinton Township say they are upset over a horrible smell that seems to be at its peak when temperatures soar. They claim it has been going on for years.
Monday, May 20 2013 9:54 PM EDT2013-05-21 01:54:16 GMT
Wayne County Circuit Judge Wade McCree is fighting to save his job and his career. Monday, the woman who was once his mistress testified about their numerous sexual encounters.
He once said there was no shame in his game, but now Wayne County Circuit Judge Wade McCree is fighting to save his job and his career. Monday, the woman who was once his mistress testified about their numerous sexual encounters.
Monday, May 20 2013 8:28 PM EDT2013-05-21 00:28:46 GMT
As Bobby Ferguson faces a retrial on bid-rigging charges, he may have to represent himself. He refuses to fill out an application needed to determine if he qualifies for a court appointed lawyer.
As Bobby Ferguson faces a retrial on bid-rigging charges, he may have to represent himself. He refuses to fill out an application needed to determine if he qualifies for a court appointed lawyer.
Monday, May 20 2013 5:51 PM EDT2013-05-20 21:51:26 GMT
A church community in Canton is reeling over the death of a young man. He was just married on Saturday and less than 24 hours later killed in a car crash on the way to the couple's honeymoon. His bride survived.
A church community in Canton is reeling over the death of a young man. He was just married on Saturday and less than 24 hours later killed in a car crash on the way to the couple's honeymoon. His bride survived.
Monday, May 20 2013 3:26 PM EDT2013-05-20 19:26:50 GMT
It was supposed to be their big night, but prom turned into a big headache for teens from a local high school. Police showed up to crack down on an unauthorized limo service.
It was supposed to be their big night, but prom turned into a big headache for teens from a local high school. Police showed up to crack down on an unauthorized limo service.
Monday, May 20 2013 11:42 AM EDT2013-05-20 15:42:57 GMT
Perfect weather for a wonderful cause on Saturday in downtown Detroit and some Fox 2 viewers shared a few photos with us to help capture the day. Take a look and add your photos.
Perfect weather for a wonderful cause on Saturday in downtown Detroit and some Fox 2 viewers shared a few photos with us to help capture the day. Take a look and add your photos.
