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Offer made on Petters pal Catain's house in Costa Rica
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Michael Catain
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What's the value of an ocean-view home set some 50 yards from a beach, with a total of six bedrooms, 6 1/2 baths and a pool in sun-drenched Costa Rica?
A lot less than you'd think. In fact, less than many houses on Lake Minnetonka.
But receiver Doug Kelley no longer has to worry whether he'll find a buyer for the Central American property owned by Michael Catain, one of the convicted money launderers in the alleged Ponzi scheme Wayzata businessman Tom Petters has been accused of running.
In court documents filed Friday, Kelley revealed a $1.05 million cash offer for Catain's Costa Rica home, which Catain called Casa Tranquila.
"We nearly got the original sale price of $1.1 million," Kelley said.
Robert Richman, a former Minnesota attorney now living in Costa Rica, served as a real estate adviser for Kelley and reported the real estate market there "is completely dead." He urged Kelley to take the money or risk sitting on the property for another year or more.
Catain bought the property in 2004 with cash, which would have been during the heart of the alleged fraud scheme that was reportedly run through Petters Co. Inc. According to government charges to which Catain has pleaded guilty, he was one end of a money-laundering scheme involving the use of false invoices to convince investors they were making money from the wholesaling of retail electronic goods that didn't actually exist.
Richman said Catain's legal problems were common knowledge in the area around Casa Tranquila and that his estate is considered to be distressed.
"The only properties that are moving are those perceived to be 'fire sales,'" he said.
Richman said new villas built near Catain's house have harmed the ocean view.
"Given the state of the market and the reduced ocean view, $1 million is a reasonable offer for the property today," Richman said.
The buyer is a German national.
Kelley, who was appointed receiver for Catain's estate last fall, has asked U.S. District Court Judge Ann Montgomery to approve the sale.
He also asked Montgomery to approve the sale of Catain's "Enchanted Point" home on 1.27 acres in Shorewood for $2.4 million. That's below the original list price of $2.89 million, but $100,000 above its appraised value.
David Phelps • 612-673-7269
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