business

In a courtroom packed with family members, supporters and attorneys for bilked investors, a former Andover printer pleaded guilty Friday to 36 counts of securities fraud in a $53 million Ponzi scheme.

Wearing an orange jail jumpsuit, Gerard Frank Cellette Jr. quietly answered "yes" as his attorney, Rick Petry, confirmed that Cellette was guilty of the elements of each count.

Cellette turned himself in to prosecutors in September, long before any law enforcement agency would have had knowledge of the crime, said Assistant Hennepin County Attorney Tom Fabel.

In exchange for his plea and ongoing cooperation in helping prosecutors and a court-appointed receiver recover the money, Cellette is expected to be sentenced to six to 10 years in prison. Sentencing is set for June 7, after the deadline for investors to make civil claims against Cellette. The delay also allows time for the receiver to recover more stolen money.

About $5 million has been recovered so far, and an additional $5 million is expected to be recovered soon, Fabel said.

Six years is three times the state sentencing guidelines recommendation of 23 months for Cellette's crime. The 36 counts of securities fraud represent one count for each month he defrauded investors, from 2006 through August 2009.

Cellette, 44, started serving time in jail in December, at his own request, though he had yet to be convicted. He admitted that in order to pay bills for his business, Minnesota Print Services, he borrowed money from family and friends and promised them 10 to 12 percent interest within two or three months.

As the circle of investors expanded and more money came in, Cellette invested none in his business. Instead, he used money from new investors to pay off old ones and kept $14 million for himself.

Petry told the judge his client feels remorse.

Abby Simons • 612-673-4921