Man Accused Of Milking $17M From Investors In OC’s Largest-Ever Ponzi Scheme Surrenders
SANTA ANA (CBSLA.com) — A key figure in the largest Ponzi scheme in Orange County history has turned himself in.
KNX1070’s Mike Landa reports Adam Boskovich, of Laguna Niguel, has surrendered on a warrant to face charges of cheating 80 Orange County investors out of millions of dollars.
Prosecutor Marc Lebreche says Boskovich played a role in a $150 million fraud scheme that cost victims more than $21 million.
“Seventeen million of that came from people that Mr. Boskovich is alleged to have obtained to invest in this particular Ponzi scheme,” Lebreche said.
“Some are family members and friends but the large majority that were bigger investors and suffered larger losses were not family or friends. They were people that were actively solicited to become involved in this investment,” Lebreche said (sic).
Boskovich’s co-defendant is Gerard Frank Cellette, a Minnesota man who allegedly ran the scheme between 2005 and 2009 without ever stepping foot in California.
Cellette is accused of falsely claiming to have large printing contracts with major corporations and seeking investors for fake printing projects with the promise of 10 to 15 percent returns on investments.
The 48-year-old, who owned Minnesota Print Services, Inc., allegedly presented investors with fraudulent copies of contracts which contained details including the name of the fictitious customer, the total contract price, and the time period within which the investment would be returned with interest.
He is accused of receiving over $200 million, including the $150 million from Orange County, with net loss over $53 million, including the $21 million from the region.
Cellette is charged with 116 felony counts including 46 counts of selling unregistered securities, 43 counts of money laundering, and 27 counts of using an untrue statement in the purchase and sale of a security, with sentencing enhancements and allegations for property damage over $3.2 million, money laundering transactions in excess of $2.5 million, aggravated white collar crime over $500,000, and causing over $100,000 loss.
He was extradited from Minnesota to Orange County in February 2013 by investigators from the Orange County District Attorney’s Bureau of Investigation and is being held on $21 million bail.
He is scheduled for a preliminary hearing October 29 and faces a maximum sentence of 104 years in state prison if convicted.
Boskovich, who was charged October 22, is accused of collecting over $1 million in commission in the scheme.
The 43-year-old is charged with 32 felony counts of the use of untrue statements in the purchase or sale of a security with a sentencing enhancement allegation for causing over $100,000 in loss.
If convicted, he faces a maximum sentence of 45 years in state prison.
The Orange County District Attorney said Thursday Boskovich is out on $1 million bail.
He is scheduled for a continued arraignment December 20.