Benjamin Rogovy who ran the Christian Prayer Center is accused of creating fake religious leaders and posting false testimonials to encourage users to hand over money.
The Washington State Attorney General Bob Ferguson has ordered him to pay $7.75 million (£5.3m) to approximately 165,000 customers who were victims.
"What I will not tolerate is unlawful businesses that prey upon people -taking advantage of their faith or their need for help- in order to make a quick buck," Ferguson said in a news release.
The website has now closed down but still shows a message when you log on. It says: "We thank you for all the prayers, and we cherish the opportunity to have created a place where Christians could meet to support each other."
All those who've paid money are to be sent an email giving them an email to file a complaint through the Attorney General's Office.
Customers have until June 12, 2016.