A member of the renowned Gospel singing group The Winans has been sentenced to 14 years in prison after being convicted for committing an $8 million Ponzi scheme.
Michael Winans, Jr. was sentenced on Wednesday for his financial scam which robbed people of their life savings and fractured families. He promoted the scam in church pulpits.
The 30-year-old singer is a third-generation family member of the legendary Winans' music group, the son of Michael Winans, Sr. and the grandson of Delores "Mom" Winans and David "Pop" Winans Sr. His uncle, Marvin Winans, gave the eulogy at Whitney Houston's funeral last year.
In court, two of Michael Winans Jr.'s victims testified that the scheme to sell Saudi Arabian oil bonds ruined some people's lives.
"I want to apologize to everyone. ... These were decisions that were negligent and irresponsible," said Winans. He acknowledged that he continued to collect money even after he learned that the bonds were fake, but insisted that he had no "malicious intent."
In 2007 and 2008, he attracted over 1,000 investors, although he didn't know them all because many were recruited by others through word of mouth. He promised 100 percent returns in two months, then used the money for personal expenses or to pay off earlier investors. About 600 people are still owed $4.7 million, reports the Associated Press.
Winans also performed with his cousins as Winans Phase II and released his own album in 2011 called "My Own Genre."
Much like the Ponzi scheme, he relied on friends to round up investors. But when they discovered that the bonds were bogus, investors angrily turned on the people who recruited them.
"There are lots of marriages that have been destroyed. I know family members who aren't speaking to each other," Tara Hurt told the judge.
U.S. District Judge Sean Cox read from some of the letters written by victims. One woman, he said, was forced to join the Army because her family had lost money that was intended for her college education.
"Fraud on good, decent church-going people - that was very, very troubling to me," Cox said.
"Investor fraud schemes like this one are just a fancy way to steal other people's money," U.S. Attorney Barbara McQuade added.
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