Pulpit Ponzi: Winans Family Member Accused In Massive Money Scam

A member of the legendary Winans gospel family is being named as the ringleader of a Detroit area Ponzi scheme that could have made him as much at $11 million in early estimates.

The Office of Financial and Insurance Regulation announced today that a 14-month investigation uncovered that Michael Winans Jr., a member of the gospel quarter Winans Phase 2 and the son of The Winans singer, Michael Winans Sr., apparently led the Ponzi scheme that involved a Saudi Arabian crude old bond scam.

On a conference call led by Michigan state regulators today, the Office of Financial and Insurance Regulation said it was determined that Winans Jr. was the mastermind of the multilevel scam.

It is believed that Winans Jr. was able to secure investors in Ponzi scheme by using his family name to earn the trust of his victims in the Detroit community.

The scheme targeted members of the Genesis New Beginnings Church in Detroit and others throughout the city.

Additionally, state investigators revealed that they have uncovered $5 million in new Ann Arbor-based scams run by one of the Winans victims, Mark Carpenter. They are now warning residents to steer clear of Carpenter and his company, TGBG Financial.

"This was a multi-headed Ponzi hydra," said OFIR Commissioner Ken Ross. "Bank records indicate that Carpenter got scammed and then set up his own scam. We found fraud within fraud involving working people who were robbed of their life savings."

State regulators suspect that his father, Winans Sr. may have also been one of the promoters of the Ponzi scheme as well.

The Office of Financial and Insurance Regulation issued two cease and desist to Winans Jr., his associates Desmond Weems, Latonya Garth and Michael Winans Sr., and a number of other related business entities to stop selling unregistered securities products, a direct violation of the state's Uniform Securities Act.

State officials determined that Winans Jr. and his subordinates were not licensed to sell securities products in Michigan and the products sold were not registered with the state.

"We believe that the Winans family Ponzi scheme ran its course at the end of 2008," said Ross. "There are few winners here outside Mr. Winans Jr."

Winans Jr. was a member of the contemporary gospel quartet, Winans Phase 2, which included his cousins Marvin Jr., Carvin III and Juan Winans. The group released one CD, 'We Got Next' in 1999.

His father, Winans Sr. is a member of the Grammy winning gospel group The Winans. Best known for hits like 'The Question Is,' 'It's Time' and 'Ain't No Need To Worry,' the group was inducted into the Gospel Hall of Fame in 2007. He also released three duet CDs with his wife Regina Winans.