Inches away from being certified, the Detroit Free Press and FOX2 News reports that Michael Winans, Jr., son of Michael Winans, Sr.of the Grammy-award winning Winans family, lured hundreds of investors in a multi-level Ponzi-type scheme that took in over $11 million since 2008. Most of the victims came from fellow church members of the Genesis New Beginning Churchin Detroit and others, possibly starstruck by the Winans’ celebrity. Michael Winans, Sr., the father, is also alleged to be on the scheme.
The scam also opens up a new window of corruption with the mentioning of TGBG Financial, owned by Mark Carpenter. Investigators are asking for people who have dealt with Carpenter, TGBG and the Winans’ schemes to step forward.
“This was a multi-headed Ponzi hydra,” said Ken Ross, commissioner of the financial regulation office. “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.” (Detroit News)
That scam, orchestrated by the younger Winans, included Desmond Weems, Latonya Garthand gospel singing star Michael Winans Sr., as well as a number of related businesses, Ross said. The scheme broke down in the fall of 2008 after victims complained to the Detroit Police, who then contacted the state.
According to investgators, the Ponzi deal surrounded a made-up Saudi Arabai oil bond that led to the recruiting of team members to solicit chruch members and others into the scam. Investors were promised to earn 1,200 percent annua return and that the investment would be risk-free.
By the way, TGBG stands for “To God Be Glory.” What a mess. God ain’t getting no glory out of that.
Even sad to report that NO gospel web site has reported this diastrous headline, except for 1800Gospel.com, to our knowledge. And you won’t see it reported on most gospel web sites. Touching the Winans brand is like touching the hem of Jesus’ garment. Kudos to 1800Gospel.com for being so brave.
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I applaud you for posting the news. Sometimes the ugly needs to be revealed along with the good things.