*Update* Michael Winans, Jr. Pleads Guilty to Ponzi Scheme
Last month we reported that Michael Winans, Jr., a member of the famous Winans family, was officially charged by the United States government with wire fraud. This past Wednesday, Winans plead guilty to the above charge.
According to reports, Winans cheated people out of more than $8 million dollars by using a ponzi scheme. He allegedly got the victims, which is said to be over 1,000 people, to invest in Saudi Arabian oil bonds. However, feds say that his oil bonds and investments were all fake, therefore allowing Winans to pocket the money. Winans’ attorney claims that his client intends to pay the victims back all of their money.
Wayne County Prosecutor Kym Worthy, who was involved in the investigation, said, “Winans has allegedly fleeced many innocent people and betrayed their trust. This is a significant step in bringing justice to his many victims.” Winans sentencing has been set for 2 p.m. Feb. 27, 2013 before the Honorable Sean F. Cox at which time he could face a statutory maximum penalty of 20 years in prison.