Michael Winans Sentenced To 13 Years Running Ponzi Scheme

Pop and gospel performer Michael Winans, Jr. (pictured) was sentenced to 13 years for running an $8 million Ponzi scheme, The Detroit Free Press reports. He was also ordered to pay his victims–some 1,200 investors–$4.8 million in restitution.

Winans, who is a member of the renowned Winans family gospel music dynasty, pleaded guilty to defrauding investors out of $8 million in  U.S. federal court last October. The 30-year-old was named as the operator of the Winans Foundation Trust, which represented itself as a business entity that invested in crude oil bonds in Saudi Arabia.

Winans reportedly enlisted the help of 11 people to invest in the crude oil bonds and ordered them to solicit outside investments. The gospel entertainer guaranteed his contributors hefty monetary returns of anywhere from $1,000 to $8,000 within a 60 day period. Instead of paying off his investors, he lined his own pockets.

While Winans said in court that me made some “mistakes,” prosecutors argued his intentions were purely criminal in nature.

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FULL SOURCE: NEWSONE.COM