Winans Jr. Pleads Guilty
The Winans family’s Michael Winans Jr. pleaded guilty to fraud in an $8 million Ponzi scheme.
Through his scam, Winans reportedly promised investors large returns for investing in phony Saudi Arabian oil bonds, then recycled the funds among investors and kept some for personal use.
The scheme began in 2007 and by 2010, the Michigan Office of Financial and Insurance Regulation had issued a cease-and-desist order against Winans, the Detroit Free Press reported. The office noted he’d used his connections in Detroit churches to lure investors.
“Investor fraud schemes like this one are just a fancy way to steal other people’s money,” U.S. attorney Barbara McQuade told the paper. “Anyone who robs citizens of their hard-earned savings will be brought to justice.”
Winans faces up to 20 years in prison when he is sentenced Feb. 27.
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