Officials say member of Winans gospel-music family ran multimillion-dollar Ponzi schemeBy AP
Thursday, March 4, 2010
Winans family member accused of Ponzi scheme
DETROIT — Michigan regulators say a member of the Winans gospel-music family led a fraudulent, multimillion-dollar investment program by promoting bogus Saudi Arabia oil bonds.
The Office of Financial and Insurance Regulation issued a cease-and-desist order Thursday, although Commissioner Ken Ross says the alleged scheme probably stopped at the end of 2008.
Ross says Michael Winans Jr. told investors they could double their money in 60 days and police identified at least 180 investors.
Ross says the scheme was worth at least $2.6 million but could’ve been as high as $11 million. He says Winans used connections in churches to get investors.
Winans couldn’t immediately be reached for comment. A phone number linked to his address in the Detroit area went unanswered.
Tags: Arts And Entertainment, Children's Entertainment, Detroit, Michigan, Music, North America, United States