Co-defendant sentenced to 7½ years in Ponzi scheme
ST. PAUL, Minn. — A federal judge has sentenced a former car wash and record company owner to 7½ years in prison for his role in the $3.7 billion Ponzi scheme allegedly run by Minnesota businessman Tom Petters.
U.S. District Judge Richard Kyle also ordered on Monday that Michael Catain serve another three years on supervised release, and that he surrender Oct. 20.
The 54-year-old Shorewood man pleaded guilty in October 2008 to one count of money laundering conspiracy and testified against Petters as part of his plea deal. Catain admitted allowing a Petters company to funnel $12 billion of investors’ money through Catain’s business accounts from 2002 to 2008. He kept over $3 million in commissions.
Kyle sentenced Petters in April to 50 years in prison after he was convicted of orchestrating the scheme. Petters is appealing.
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