A member of the gospel music Winans family has been sentenced to nearly 14 years in prison for an $8 million financial scam that was promoted on church pulpits, according to the Associated Press.
Two of Michael Winan Jr.'s victims spoke in federal court, telling a judge that the ponzi scheme to sell Saudi Arabian oil bonds robbed some people of their life savings, causing numerous divorces and fractured many families.
"I want to apologize to everyone. These were decisions that were negligent and irresponsible," Winans said.
He claimed no "malicious intent," but acknowledged he continued to collect money even after he learned that the bonds were bogus. Winans attracted more than 1,000 investors in 2007 and 2008 because many were recruited by others through word of mouth.
Winans promised 100 percent returns in two months, and then used the money for personal expenses to pay off earlier investors. About 600 people are still owed $4.7 million.
The 30-year-old, is a third-generation member of one of gospel music's first families. He's the grandson of Delores "Mom" Winans and David "Pop" Winans Sr., and the son of Michael Winans Sr., a member of The Winans, a quartet of brothers. His uncle, Marvin Winans, gave the eulogy at Whitney Houston's funeral.
Winans performed with his cousins as Winans Phase II. He released his own album in 2011, "My Own Genre."
Winans relied on unwitting friends to round up investors, a trait of a classic Ponzi scheme. When the bonds turned out to phony, investors angrily turned on the people who recruited them.
"There are lots of marriages that have been destroyed," Tara Hurt told the judge. "I know family members who aren't speaking to each other."
The Detroit-area resident declined further comment outside court.
U.S. District Judge Sean Cox read from some of the 50 letters written by victims. He said a young woman joined the Army because her family had lost money that was intended for her college education. He noted that Winans made his pitch from church pulpits.
"Fraud on good, decent church-going people - that was very, very troubling to me," Cox said.
Cox chose a sentence that was in the guideline range of 12 1/2 years to 15 1/2 years in prison.
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