RESOLVING THE LEDGER
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Michelle Hadley spent 88 days in jail for a twisted stalking plot she had nothing to do with ... and now we know how much money was shelled out to her over the massive screw-up.
Here's the deal ... Michelle is the focus of a new Netflix documentary, "A Toxic Love Story," about a 2016 cyberstalking case out of Anaheim ... where she was tossed into the clink after her ex-boyfriend, Ian Diaz, and his fianc\u00e9e, Angela Connell, framed her for outlandish crimes ... such as trying to arrange for Angela to get raped via a Craigslist ad.
Sources with direct knowledge tell TMZ \u2026 Michelle settled with Anaheim police for $1.8 million back in 2021 ... after she sued the city for what the doc shows was sloppy, rushed police work -- all because Ian used his influence as a U.S. Marshal at the time.
We're told her attorneys received 40% of the settlement ... and she didn't have to pay their taxes because it was a civil rights case.
Still, we're told Michelle's portion was taxed ... and her family also dropped about $35,000 on attorneys' fees during her criminal ordeal.
The Netflix doc say she settled her lawsuit with the police ... but the amount was not shared, so TMZ looked into it.
At the end of the day, Michelle ended up with about $800K ... which she spent on a new condo in Connecticut and finishing her master's degree in marketing at Chapman University.
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