Michael Winans Jr. Pleads Guilty to Ponzi Scheme [Details]
Rucuss staffOctober 8, 2012
Michael Winans Jr. of the Winans gospel family has pleaded guilty to defrauding investors in an $8 million Ponzi scheme.
Winans defrauded more than 1,000 investors out of $8 million in crude oil bonds over the course of 30 years, CBS Detroit reports. He promoted the fraudulent investment operation as if the Winans Foundation Trust were investing in Saudi Arabian oil bonds. Although he knew the trust did not exist, he guaranteed the victim investors that the bonds would yield returns of $1,000 to $8,000 within 60 days.
Investigators said in a press released,“In reality, Winans converted some of the victim investors’ money to his own personal use while giving some of his later victims’ money to his earlier victims, and falsely represented to them that it was the return on their “investments.”
Michael Winans Jr. is the grandson of Delores “Mom” Winans and David “Pop” Winans Sr., and son of Michael Winans Sr., a member of The Winans quartet.
Winans, the son of Michael Winans Sr., who is a member of The Winans quartet, is scheduled for sentencing in Detroit federal court on February 27, 2013. He faces the maximum penalty of 20 years in prison.
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