Alleged Ponzi scheme items to be auctioned

Boats, trailers, cars, go-carts and other property of an Andover man accused of defrauding more than 100 investors in a $53 million scheme will be up for sale.

By ROCHELLE OLSON, Star Tribune

Last update: November 18, 2009 - 8:21 PM

An Andover printer charged in an alleged $53 million Ponzi scheme will see much of his property go up for auction before Christmas, including land, cars, condos and go-carts, under a court order issued Wednesday.

Gerard Frank Cellette Jr., 44, faces both criminal charges and a civil lawsuit from investors seeking to recoup losses. He was charged in Hennepin County this month with 36 counts of securities fraud in what prosecutors say is one of the biggest Ponzi schemes they have dealt with.

At a brief hearing, Ryan Murphy, representing the receiver Lighthouse, argued in favor of the auction, as did David Wymore, representing plaintiffs in the civil lawsuit, and Mark Larsen, representing Cellette's wife, Barbara. Assistant County Attorney Emery Adoradio, who is handling the criminal charges, said he had no objection to the auction.

Gerald Cellette sat in the back corner of the spectator section and did not speak. He is to appear next on his criminal matter at 1:30 p.m. Dec. 9 before District Judge Gary Larson.

Murphy said Cellette owns properties in the Brainerd area, where the auction is to be held, as well as the Twin Cities. The Twin Cities properties will be sold through a broker, he said.

Larson authorized the auction for the sale of several properties in Deerwood. Those include some land on Bay Lake as well as three condos and a place called the Red Barn with a go-cart track.

Also for sale: five utility trailers, at least six boats of various types, five personal watercraft, three boat motors, eight snowmobiles, four all-terrain vehicles, four golf carts, a riding lawn mower and 12 go-carts.

The auction will also include items from Cellette's Andover home, including more than 30 televisions, chairs, pool tables, two bowling lanes, popcorn machines, home theater furniture and arcade games.

Eight vehicles will be sold at auction if they are not first sold on eBay. They include a 2008 Lexus, a 2005 Lexus, a 2007 Acura, a 2009 Acura, a 2008 GMC Yukon CL, a 2008 GMC Savana RV, a 2008 Chrysler Town & Country and a 2006 Cadillac.

Murphy said the goal is to get as much money as possible for the items. The fight over the proceeds will come later.

Prosecutors say Cellette defrauded more 100 investors in Minnesota and elsewhere who may be owed up to hundreds of millions of dollars. Cellette took $14 million for himself, the prosecutors said.

Cellette turned himself in and is cooperating with authorities.

The complaint against Cellette filed this month alleges a scheme that started in 2005, shortly after he began seeking investors "for additional capital for the continuation of his business." Cellette had promised returns of 10 to 12 percent within just two or three months and strung-along past investors with money from new ones, the charges say.

Rochelle Olson • 612-673-1747