Judge recommends that disgraced Justice Diane Hathaway spend prison in "Camp Cupcake"

LANSING (WXYZ) - A federal judge has recommended that disgraced fmr. State Supreme Court Justice Diane Hathaway spend her incarceration in a prison known as "Camp Cupcake."

Hathaway, who last month was sentenced to 1 year and 1 day behind bars for committing bank fraud, is still out free.  Yesterday, Judge John O'Meara recommended that Hathaway be sent to Federal Prison Camp in Alderson, West Virginia, a minimum-security facility for women.

The prison, which has been compared to a college campus, has housed white-collar criminals like Martha Stewart.  Most recently, fmr. city council member Monica Conyers was released from the prison after spending time there for bribery.

The feds say Hathaway hid assets totaling more than $1 million dollars to fool her bank, who later forgave more than $664,000 in mortgage debt on her Grosse Pointe Park home.  The scheme defrauded Hathaway's bank of $90,000.

Contact 7 Action News Investigator Ross Jones at rjones@wxyz.com or at (248) 827-9466.


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