By Patsy R. Brumfield/NEMS Daily Journal
BRUCE – Kris Garner Hathorne of Bruce will report to a federal prison Oct. 5 for her part in a Texas real estate scheme.
Hathorne was sentenced in late August to 25 months in prison. She also was ordered to pay nearly $1.9 million in restitution.
Hathorne and David L. Diggles were indicted Oct. 12, 2011, on one count that accused them of a scheme from 2004-2007 to defraud lending institutions.
They allegedly bought residential properties and kept the difference in the real sale price and inflated values reported to the banks. They also allegedly used straw buyers with good credit to buy houses.
If convicted, each faced up to 20 years in prison and up to a $250,000 fine.
In a deal with the government, she pleaded guilty to an information, which is a criminal charge that doesn’t come from a grand jury.
Hathorne, who was an escrow officer for a title company in Plano, Texas, pleaded guilty to mail fraud March 19 and was sentenced Aug. 24 before Judge Marcia A. Crone in Sherman, Texas.
Court records show she will serve her prison time in a federal facility in Aliceville, Ala., and undergo its Inmate Financial Responsibility Program.
Upon release from prison, she’ll be on supervised release for three years.
Her restitution, ordered to be paid immediately, will go to seven financial institutions without interest.
Hathorne two years ago married Bruce First Baptist Church’s pastor, the Rev. Daniel Hathorne. Her husband said Tuesday they will not appeal the conviction.
Co-defendant Diggles pleaded guilty July 12 but has not been sentenced. However, Crone also ordered him to pay more than $1.8 million restitution.