A Metro Detroit couple accused of running a human trafficking operation out of massage parlors in Commerce Township, Farmington Hills and Westland has been bound over to circuit court, where they now face trial on charges including conducting a criminal enterprise and multiple counts of human trafficking. Zixuan Wan, 44, and her husband Paul Richard Katterman II, 57, are scheduled to be arraigned in circuit court at 8:30 a.m. on August 27.
According to authorities, Katterman and Wan ran the trafficking operation through illicit massage parlors, forcing women to live and work under harsh conditions for minimal pay, as reported by ClickOnDetroit. Investigators allege the women were forced to live inside the massage parlors themselves and made to participate in sex work, working from 9 a.m. to 10 p.m. seven days a week. Wan was charged with conducting a criminal enterprise, second-degree money laundering, keeping a house of prostitution, failure to file taxes, and two counts of human trafficking, while Katterman faces conducting a criminal enterprise, keeping a house of prostitution, failure to file taxes, and two counts of human trafficking.
How the Case Came Together
The investigation traces back to November 2024, when Farmington Hills police officers attended an Oakland County Prosecutor's Office training session on human trafficking detection. That training led officers to identify an unlicensed massage business near 13 Mile and Orchard Lake Roads, according to CBS News. The tip set off a broader multi-jurisdictional investigation spanning Oakland and Wayne counties.
On March 5, 2025, a joint task force made up of Farmington Hills Police, the Westland Police SIU, and the Oakland County Sheriff's Office executed search warrants across three massage parlors, a Livonia residence, and several bank accounts. The raids netted firearms and roughly $140,000 in cash, per Farmington Hills police records. Four non-English-speaking immigrant women from China were rescued during the operation and placed with Common Ground and CARE House of Oakland County for specialized survivor assistance, according to FOX 2 Detroit.
Separate Arrests, Now a Joint Case
Wan was arrested the day of the raids and ordered held on a $100,000 bond that required a GPS tether and surrender of her passport, according to Patch. Katterman was not arrested until weeks later, on April 22, 2025. Both defendants have now been bound over to circuit court following their preliminary examination, with a joint arraignment set for August 27.
The charges the pair face carry significant statutory exposure. Under Michigan Compiled Laws, conducting a criminal enterprise carries a maximum penalty of 20 years in prison and a $100,000 fine, while second-degree money laundering is punishable by up to 10 years in prison and a $100,000 fine, according to the Michigan Legislature's statutory framework.
State Lawmakers Push for Tougher Penalties
The case lands amid a broader legislative push in Lansing to stiffen human trafficking penalties statewide. In January, the Michigan Senate unanimously passed bipartisan legislation — Senate Bills 520, 521, and 705 — that would raise standard adult human trafficking prison penalties from 10 years to 20 years and double maximum fines to $20,000. Lawmakers cited data from Michigan Senate Resolution 90 showing the National Human Trafficking Hotline received 764 tips originating from Michigan in 2024, identifying 340 confirmed trafficking cases involving 585 victims statewide.
Oakland County Prosecutor Karen McDonald has also pressed the issue from another angle, warning in March 2025 that patrons of illicit massage parlors are complicit in human trafficking and could themselves face criminal prosecution, according to ClickOnDetroit. Her office has framed demand-side accountability as central to disrupting these operations, though it remains unclear how prosecutors plan to pursue buyers connected to this specific case.
Uneven Outcomes in Similar Cases
Not every Oakland County massage parlor trafficking prosecution has ended in a bindover. In a separate case, a Southfield judge dismissed all charges against defendant Runping “Lisa” Huang in March, as Hoodline reported at the time. That outcome underscores the steep evidentiary threshold these cases face at the preliminary examination stage, even as the Wan and Katterman case has proceeded toward trial.
Officials continue to urge anyone with information about suspected trafficking to come forward. Michigan residents can report child or adult victim concerns to 855-444-3911, while the National Human Trafficking Resource Center can be reached at 888-373-7888 or by texting 233733. Anyone who believes a person is in immediate danger is urged to call 911.
