Andover man charged in $53 million Ponzi scheme

Hennepin County prosecutors filed charges Thursday against an Andover man who's accused of operating a Ponzi scheme.  Gerard Cellette, Jr., 44, faces 36 counts of felony fraud.

Kris Shaw is one of the alleged victims.  To say that Shaw was close to Cellette would be an understatement.

"I thought of him as my mentor," Shaw said.

They met more than four years ago because their sons were in the same football league in Coon Rapids.  Their families became so close over the years, Shaw wanted Cellette to be his youngest son's godfather.

"We made him an executor on our will," Shaw said.  "You don't just do that with anybody."

Cellette ran a printing business, Minnesota Print Services, Inc. out of his home.  Just weeks after meeting, Shaw said that Cellette presented him with an investment opportunity.

"I had no reason to doubt him," Shaw said.  "He sucked me in as a family friend and I wasn't going to question what he did."

Shaw made plenty of money, especially in the past couple of years.  But in September, he learned it was all a house of cards.

"I feel betrayed," Shaw told KARE 11 on Thursday.

Hennepin County Attorney Mike Freeman said Cellette came forward to investigators in September.  "He's cooperating," Freeman said Thursday.

According to the criminal complaint, Cellette got people to invest in fictitious printing contracts and promised returns of ten to 12 percent.  He allegedly paid his original investors with money that he got from new investors.

Prosecutors say Cellette admits to making $14 million, but he apparently owes his investors about $53 million.

"Some of my friends and some of my family lost everything," Shaw said.  "They had invested millions into this."

Shaw now fears he'll only get pennies for every dollar he's owed.  It's an incredible loss -- of money and friendship.

KARE 11 was unable to reach Cellette for comment Thursday. 

Some of his alleged victims, including Shaw, have already filed a civil lawsuit against Cellette. 

Freeman's office is also taking inventory of Cellette's property to try and get some of the money back.  Prosecutors are also investigating whether anyone else was involved.

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