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Michael Catain

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Michael Catain
BornMichael Alan Catain
(1956-03-12) March 12, 1956 (age 68)
Cook County, Illinois, U.S.
🏳️ NationalityAmerican
🏫 EducationBirmingham High School
🎓 Alma materWestern State College of Colorado
💼 Occupation
Businessman
📆 Years active  1975–present
Known forConnection to Tom Petters, a former businessman and convicted criminal, and the Petters US$3.7 billion Ponzi scheme
Criminal statusReleased on April 21, 2017, with three years supervised release
👩 Spouse(s)
Joan Wolff (m. 1981)
👶 Children2
👴 👵 Parent(s)
👪 Relatives

Michael Alan Catain (born March 12, 1956)[1] is an American businessman and convicted criminal.[2][3] He became well-known through his connection to Tom Petters, a former businessman and convicted criminal, and the Petters US$3.7 billion Ponzi scheme.[4]

Early life[edit]

Michael Alan Catain was born in Cook County, Illinois on March 12, 1956,[1] as the younger of two children to Jack Catain Jr. (1930–1987),[5][6][7][8] a businessman and convicted criminal[9] who was a central figure in the biggest American stock-market scandal of the 1980s,[10] and Marlene Catain (née Noble; 1934–2014),[11][12][13] a women's apparel sales associate.[14] His mother was Jewish.[15] His elder sister is Michele Catain (born 1953),[16][17][18][19][20] a crew member and real estate agent.[21][22] His paternal relations came from Italian ancestry.[23]


Catain attended Birmingham High School, a charter coeducation secondary school, in San Fernando Valley, Los Angeles County, California, from 1972; graduating in 1974. He then attended Western State College of Colorado, a public university, in Gunnison, Colorado.[24]

Career[edit]

Catain began his career in 1975, at the age of 19, as an artists and repertoire director for United Artists, a production and distribution company. His father had been an active investor in the company. He also served as the assistant to the president.[25] He has worked with Elton John's record label, The Rocket Record Company.[14]

Catain became the manager at Universal International, a liquidation company, when Universal merged with his Los Angeles firm.[14] He became the president of Universal Capital Group, a liquidation and appraisal company, upon moving to Minnesota in the mid-1990s.[14][26][27]

Catain founded Liquid 8 Records and Entertainment, an independent music label, in 2001. Tom Petters, a businessman and convicted criminal, had been as an investor who later became a silent partner. He said the company's name was inspired by a vanity license plate he owned. In 2002 and 2003, with KARE-11 TV as a partner, the company co-sponsored Minnesota Idol competitions based on the popular American Idol singing competition, then released albums by the winners, and signed up Target and Best Buy for special distribution deals.[14]

Catain owned Casa Tranquila, a private retreat villa in Guanacaste, Costa Rica, located 40 minutes from Liberia Airport, that he rented out to well-heeled vacationers from 2004.[28][14][29] He has worked in Provincia De Heredia.[30][31]

Catain co-founded Doctor Mac Direct, a tech support business, with Bob LeVitus, in 2005. LeVitus is also known as Dr. Mac.[14]

Catain founded lovepeacecows.com[32][33] in 2017. He also worked at Tinos Pizza, a family run pizzeria in Excelsior.[34][35]

Criminal history[edit]

Catain founded Enchanted Family Buying Company (EFBC) in Excelsior, Minnesota in 2002. EFBC was later found to be a shell corporation. He funneled about US$12 billion, at Anchor Bank in Wayzata, through the company and collected about US$3 million in commission.[36][37]

Catain founded Excelsior Bay Car Wash, a car wash, which was later found to be a shell corporation. The company was sold for US$646,044.44 on February 26, 2009. The proceeds were deposited into his receivership account.[38]

On October 3, 2008, Catain was charged with money laundering.[36] On October 8, he pleaded guilty to money laundering on behalf of Tom Petters, a businessman and convicted criminal, between January 2002 and September 2008.[39][40][41][42][43][44] The Petters Ponzi scheme[45] has been included under historical examples on the list of Ponzi schemes.[46] He then awaited sentencing.[37] He had properties in Costa Rica, Central America.[47][48] He was taken back into custody in January 2009, after violating the terms of his release by hiding assets from the court. He was accused of taking US$14,000 in proceeds from the car wash he owned. His home was searched and some items were removed, which were later returned.[49][14][50] His assets were frozen, by a court-order.[51] He once told Petters: "it rained last night and 18 head of cabbage grew", later confirming that he meant US$18,000 had been delivered in cash. He first met Petters in the mid-1990s, when Catain was running a retail liquidation business. Petters first approached Catain in 2000. Catain was later sued by GE Capital and put out of business. He testified against Petters in court on November 12, 2010.[26] He was due to be sentenced after March 15, 2010.[52][53] His sentencing date had not been scheduled by July 2010.[53][54] He had no prior criminal record.[40][50] He was ordered to be released from the Sherburne County jail by a federal judge on March 21, 2011.[55] His wife, Joan Kenney Catain, has been named in official court documents.[56][57][58]

On September 13, 2010, Catain was sentenced to seven and a half years in federal prison on one count of conspiracy to commit money laundering.[4][59] He had been released on a US$25,000 bond in October 2008 and jailed for two months in early 2009. He received credit for the two months he had previously served. He requested to serve his full time at the federal prison camp in Duluth, Minnesota.[2][3][60][61][62] His release date was set for March 31, 2017.[63]

Catain was released on April 21, 2017, according to the Federal Bureau of Prisons.[64][65] He was imprisoned at Duluth Federal Prison Camp.[63] He spent three years on supervised release.[66]

Controversy[edit]

Catain purchased the property at 4550 Enchanted Point in Shorewood, Minnesota in 2004.[67] According to an attorney for his neighbors, Catain gained their permission for a code variance to build a house there and promised them rights to build a dock on his Lake Minnetonka shoreline in return. Catain's new house was completed in 2006, with Catain reneging on his promise to the neighbors about the dock, they say. Throughout 2007 and 2008, Catain filed complaints about his neighbors to police and city officials in what the neighbors' attorney called a campaign of harassment. In 2008, Catain sued his neighbors for intentional infliction of emotional distress. They countersued Catain for defamation and making terroristic threats. The lawsuits were put on hold pending Catain's sentencing in the Tom Petters case.[14] Jim Molnar, who worked for the Internal Revenue Service, said: "In order to sell the house, we had to correct the zoning violations and rip out the whole deck, and we had to pull all of the kitchen items, the dishwasher, stove, refrigerator and microwave from that carriage house."[68]

Personal life[edit]

Catain has been a relatively high-profile citizen since he moved from Los Angeles to the Twin Cities in 1996.[14]

Marriage, children and family[edit]

Catain married Joan Kenney "Joni" Wolff[69] (born May 28, 1956),[70][71] a businesswoman, in Clark County, Nevada on January 3, 1981.[72] They have two sons[73] together; Michael Alan "Mike" Catain Jr. (born December 3, 1981),[74][75] a chiropractor,[76] and Nicholas Edward "Nick" Catain[77] (born January 2, 1989),[78] a psychologist.[79] He has one granddaughter through Mike and his wife, Kristina Catain.[80][81]


Catain is the uncle of Todd Durboraw (born 1976),[82][83] a former actor and crew member.[84][85][86][87]

Catain's parents divorced when he was 22-years-old.[88] His father married Kathleen Richards (1938–2002), a casting director, on July 4, 1980.[89][90] Richards was his stepmother, briefly.[91] He gained three stepsisters from his father's second marriage; Kathy Hilton (born 1959),[92][93][94] Kim Richards (born 1964)[95] and Kyle Richards (born 1969),[96][97] actresses.[20] His father and stepmother were divorced on March 16, 1982.[98] He later recalled: "my dad was a tough guy, and Kathy just loved that image of a guy being tough and kind of treating her rough. She liked that Mafioso thing, there was just a lot of energy between them. Kathy saw dollar signs when she looked at Jack, even knowing that most of his money, if not all of his wealth—the roll of dough in his pockets, RollsRoyce and a special edition Cadillac convertible, plus the jewelry he gave her, and his 8,000 feet square home high on the hill in Sherman Oaks had all come from proceeds of criminal activities."[99] His father married Phyllis Sherwood (born May 12, 1935),[100][101][102] a performer, singer and actress, on May 1, 1983.[103] He gained two grown stepbrothers from his father's third marriage; Michael Sherwood (1959–2019)[104] and Billy Sherwood (born 1965),[105] musicians.[106] His mother, Marlene Katz, died from cancer in Las Vegas, Nevada on September 29, 2014. She was 80.[12] She married Byron Ellis "Al" Katz[107] (1928–2019),[108] a businessman, in 1986. Katz was his stepfather.[13][109] He gained two grown stepsisters from his mother's second marriage.[108]

Residence[edit]

Catain resides in Minnetonka, Minnesota.[24]

Catain purchased 4550 Enchanted Point in Shorewood, Minnesota for US$1.5 million in 2004. The 8,000 square-foot log home with 700 feet of Lake Minnetonka shoreline included a large deck he had built around his swimming pool. He turned a three-car garage into a studio and added a full kitchen, bathroom and shower to the building.[68] He sold the property for US$2.4 million in 2009.[14][67][58]

Catain owned a smaller home in Shorewood and a condominium in downtown Minneapolis.[14]

Catain purchased Casa Tranquila, a villa in Guanacaste, Costa Rica, for US$1.1 million in cash, in 2004. There was no mortgage on the property.[28][14][29] He later sold Casa Tranquila for US$1.05 million.[68]

Politics[edit]

Catain donated US$1,000 to the Republican Party's Norm Coleman for US Senate campaign on October 25, 2001.[110][111]

Catain donated US$2,100 to the Democratic Party's Amy Klobuchar for Minnesota campaign on March 31, 2005.[110][112]

Health[edit]

In March 2011, it was reported that Catain was in poor health and would need hip and back surgery in the near future.[55]

References[edit]

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This article "Michael Catain" is from Simple English Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Michael Catain.