In January, a federal magistrate judge found that after Michael Catain plead guilty, he skimmed nearly $14,000 from his Excelsior car wash business--money which was supposed to be inaccessible due to the fact Catain's assets were ordered into the court's control.

The 52-year-old was subsequently arrested.

However, on Monday, district court Judge Paul Magnuson handed down a higher ruling which found that Catain did violate his conditions of release, but he did not take the money with 'criminal intent or for some other nefarious purpose.'

Magnuson also stated he did not believe Catain was likely to flee before his sentencing.

Catain has been imprisoned since late January and has plead guilty to being involved in an over $3 billion Ponzi scheme, allegedly masterminded by Petters.

COURT DOCUMENTS:
 View the release request
 Read Petters motion to be freed
 Read Petters detention documents
 Read the affidavit
 Petters Group Worldwide bankruptcy documents
 Intervention in Petters case denied

BACKGROUND ON THE STORY:
 Biography of Tom Petters
 Petters requests change of venue for trial
 Petters co-defendant asks for frivolous monthly increases
 Petters associate asks for jail release
 Judge revokes bail for Petters associate
 Petters associate to be searched again for assets
 Motion filed to send Petters associate to jail
 OFFICIAL: Petters hiding money from court 
 Petters makes third request for release
 FEDS: Petters' associate knew of scheme
 Attorneys say Petters not a flight risk
 Petters' attorney: 'There's been rush to judgment'
 Petters associate transported to Sherburne Co. Jail 
 Petters Group Worldwide files for Ch. 11 
 Petters ordered held, 3 associates plead guilty 
 Excelsior man charged in Petters matter
 Petters charged with fraud, will be held in jail 
 Court documents unsealed in Petters case 
 Petters resigns 
 Petters meets with employees after raid
 Warrant alleges $100M fraud by Petters

HOW THE CASE AFFECTS OTHERS:
 Petters case leaves Rochester bank out $7.1M
 Non-profits, charity groups sue Petters, associates 
 Top Minn. politicians return Petters donations 
 Hedge fund sues Petters, alleging swindle
 How bad is it? Sun Country says they're $4M in debt
 Sun Country files for bankruptcy protection 
 Sun Country warns of possible shutdown 
 Sun Country defers half of paychecks 
 Interview with Sun Country's CEO