100 Huntley Street Mainse brothers victims of ponzi scheme?

Okay. I have to handle this one with kid gloves because I am really lousy at reporting financial information and there are a lot of victims here.
Two are high profile in Canadian religious media circles.
Also this case is before the courts in the US.
These are charges and Gordon Driver is innocent until proven guilty.

It appears that Reynold and Ronald Mainse of 100 Huntley Street – a popular religious show in Canada – are victims of an alleged ponzi scheme from a former employer.

The brothers are the sons of the founder of 100 Huntley, David Mainse. Ron Mainse is director of the group of broadcast interests  Crossroads Christian Communications Inc. (CTS, 100 Huntley Street) and Reynold Mainse is Vice President of Crossroads Missions. Reynold and his wife host the flagship show (100 Huntley Street) once a week, Ron and his wife co-host 100 Huntley.      

The only Canadian news report I can find is in The Hamilton Spectator dated May 21st.  Local Man accused in 14m Ponzi scheme.

Anyone who invests can be a victim of a ponzi scheme, they happen with a dreary regularity. Churches and ministries are not immune, they are fertile grounds for schemes and victims because of the levels of trust faith communities have. The common name for this kind of scheme is called affinity fraud.

It is the Ontario Security Exchange filing that got an eyebrow raised.

The company is Axcess Fund and the OSC issued it’s order on April 15th. Subsequent to the OSC filing, the company was ordered to halt all activity. The Security Exchange Commission and the Commodity Futures Exchange Commission filed suit in May. The Ontario Exchange Commission order extends until October 15, 2009.

The financial aspect of the story is fleshed out at Stockwatch. Over 100 investors from the US and Canada invested in Axcess which promised a weekly return to investors of 1 to 5%.

Of the $14.1-million the scheme allegedly raised, the SEC says Mr. Driver used $1.1-million for personal expenses and $10.7-million to pay purported returns to investors in Ponzi fashion. He only used $3.7-million to trade futures, and rather than making the substantial profits that he represented to investors, he actually incurred $3.55-million in trading losses, the SEC alleges.
According to the complaint, Mr. Driver initially solicited friends, neighbours and business acquaintances to invest in Axcess. The SEC alleges that his scheme flourished in mid-2007 when he recruited leaders of an Ontario Christian television ministry where he had worked in the 1970s. “Close relatives of the television ministry’s founder invested in Axcess and became finders or ‘point persons’ for Axcess,” the complaint states. The SEC says these finders solicited new investors, mostly friends and family, to participate in the scheme. For their efforts, the finders were allegedly offered a 5-per-cent commission.

Some investors in the scheme received false statements, which purported to show their account balances and returns, the SEC claims. In late February, 2009, Mr. Driver sent 48 investors a statement on Axcess letterhead which showed that their account balances totalled approximately $9.6-million, according to the complaint. “In fact, at the end of December, Driver only had about $276,162 in all of his accounts: $265,388 in his bank accounts and $10,774 in one trading account,” the SEC alleges.

51 year old Gordon Driver spent a few months working for 100 Huntley Street years ago and it appears he used his friendships to develop his scheme which he ran out of Nevada. The reason my eyebrow raised was because the other person named on the OSC filing is David Rutledge.

It is alleged Driver started his scheme in February 2006 and early investors received a 20% return.

There is a software company named Axcess International which has a May 12, 2009 article on software integration. It’s in Texas and deals with RFID technology.
That article came out a few days before the SEC and the CFTC filed against Gordon Driver and his companies. There is another story a few days earlier in MacWorld about Axcess iAccounting. An investors watchblog picked this up up a few days later.

Here is where I’m stumped.

1) How many companies are there named Axcess in the business software business?
2) Now what?  Gordon Driver is facing five US federal charges, his assets are frozen. I read there was supposed to be a May 22nd court appearance (after the temporary injunction) but I haven’t found anything.

Which brings us back to Canada. There are many David Rutledges, including a race car driver and a scientist.

Need my readers help. I don’t watch 100 Huntley Street but I do know the Rutledge family married into the Mainse family.
Who is David Rutledge? Is he a relative of Ron and Reynold Mainse?
(their mom’s maiden name is Rutledge)

I lose the legal trail on Gordon Driver and his Axcess companies May 15th after the complaints are filed in the US. Can anyone familiar with investments and civil trials tell us where this goes from here?

How much did Ron and Reynold Mainse invest and lose?
Has this been addressed on their TV shows yet?
Does it need to be?
How many Canadian investors are involved and did they all come from the 100 Huntley Street crowd or from churches?

Why has only one Canadian newspaper picked this up?
People have been scammed.  Are millions of dollars and promise of big returns that common in churches and Canadian televangelist families this is a none story?

As of June 4th, the only thing I can find is that Ron Mainse and Reynold Mainse were no longer associated with the show.

Which makes this March video by Ron Mainse on economic stress and giving sadly ironic.

If this is the story, a lot of people have been hurt.
There is nothing on Crossroads I can find. Yet.

The Mainse and Rutledge families will have to speak up at some stage, Ron and Reynold are media figures. While investments with Gordon Driver may have only affected the Mainse brothers personal finances, this goes a lot deeper than money.
We don’t know how this has impacted  Crossroad employees, viewers, friends and other family members.

Crossroads Christian Communications
Crossroads Christian Communications is a 23 million dollar business according to the 2008 Revenue Canada filings. They listed 178 employees in 2008.
I contacted CTS recently regarding a show and got a prompt, courteous and professional response. 
I’m losing my touch, I’m not understanding why media and blogs haven’t picked up on this.

Posted the statement from 100 Huntley Street’s Jim Cantelon here.

Update: David Rutledge is the cousin of Ron and Reynold Mainse and the son of Ralph Rutledge. Thank you readers! Next question. Is this the David Rutledge you are identifying?

About Bene Diction

Have courage for the great sorrows, And patience for the small ones. And when you have laboriously accomplished your tasks, go to sleep in peace. God is awake.
This entry was posted in 100 Huntley Street, Axcess Funds, General, Gordon Driver. Bookmark the permalink.

25 Responses to 100 Huntley Street Mainse brothers victims of ponzi scheme?

  1. Torontonian says:

    Just an observation: Neither Mainse brother has been on the program for the last fortnight. Jim Cantelon has been substituting for the time.
    I wondered where was either one of them during the last two weeks.

    I wondered if there had been something afoot.

  2. Bob01 says:

    I remember Pastor Ralph Rutledge who used to be on 100 Huntley Street a lot in the old days. He was at Queensway Cathedral?

  3. Bene Diction says:

    Found it!

    http://100huntley.com/program-latest.php

    That’s not a pleasant announcement to make.

    Cantelon is clear it isn’t sexual impropriety and quotes Jeremiah.

    So are the wives off the show?
    It’s like they don’t exist in this statement.

    He says it has nothing to do with the ministry twice and prays for the good of all.

    Oh man, this isn’t a circle of viewers that will be satisfied with that statement.

  4. Pingback: 100 Huntley Street - we’re dealing with issues…Ron and Reynold Mainse at Bene Diction Blogs On

  5. Bene D says:

    Bob, nice catch! I completely forgot about Ralph.

    Yeah.

    He’s here now as far as I can – not that here is helpful -don’t know anything about his relatives.

    For a media saavy , um, colourful guy, this isn’t very media um, saavy. I’ll have to go into the Wayback and see if he had something up earlier or this is new.

    What relation is David Rutledge to him, if any?

  6. Bob01 says:

    I see Ralph Rutledge has a few videos on Youtube. I hadn’t thought of him in many years. Didn’t even know that he was still a minister.

    As for the relationship between David Rutledge and Ralph Rutledge, who knows? . I see that there is a David Rutledge, who is an investment adviser in Ontario listed below but its a relatively common name as you can see.

    http://www.linkedin.com/pub/dir/david/rutledge

    One of the Mainse wives was 100 Huntley Street on last night, I noticed.

  7. Bene D says:

    Okay, wondered if the wives were banished. Maybe they have to bring home the bacon. The statement didn’t say whether or not the brothers were still pulling salaries from Crossroads.

    They didn’t make large base salaries if I’m reading Rev Can correctly.

    I saw Ralphs videos, I thought he was long gone also (silly us) and I’ll head into Wayback and see if his new operation pulled their webpage.
    I don’t know why he left Queensway, what have you got?
    I don’t know if his departure from 100 Huntley was graceful either.

    There are a fair number of David Rutledges, aren’t there?

    Finding out who the David Rutledge on the Ontario document is to Ronald and Reynold Mainse is a start.

    Thanks Bob, keep digging.

  8. Pingback: Ron and Reynold Mainse removed from 100 Huntley Street, victims of ponzi scheme? | Religious Right Alert

  9. tom hamilton says:

    It is my understanding that ron reynold anddavid are cousins as I was showing them real estate a couple of years ago

  10. Tom Hamilton says:

    It is my understanding that the Mainse brothers and Mr David Rutledge are cousins and that Ron Mainse lived in the same neighbourhood as Mr Gordon Driver. I had leased this property to Mr Driver a couple of years ago and he was still there this past January and February but i believe he went back to California for March, April and was back here in May I dropped by the home the other day to see court papers attached to the front door. While speaking to some neighbours I was told there had been a break in and a safe was thrown down the stairs. My client the owner has been trying to make arrangements to get in the house for insurance purposes with no luck in getting hold of Mr Driver.

  11. no name says:

    I have all the answers to all your questions, I am also a victum of this perticular scheme.

    What do you need to know?

    Ralph is David’s father…
    There are a lot of people in the GTA who are GREATLY affected by this scam, some will loose their homes, some will never recover. I will be ok, but have suffered a big loss.

  12. Bene Diction says:

    No name:

    Before we shed any light on this, first let me say I’m sorry.

    I’ve written Crossroads to ask David Rutledge if he is the person named in the Ontario Security Exchange Commission filing. A trust but verify step.

    David Rutledge, Director of Ministry Relations, Crossroads.

    Please share what ever part of your you think will help others, and feel free to email me privately. I do have questions and wish to respect what you’ve been through. Once publish is hit, it’s public forever.

    If I’m reading the California court filing correctly 15 people in the US were investors. That leaves 85+ Canadians.

    Tom:
    Thank you. I’m sorry about what has happened to you also.
    Your time frame makes sense from the paper trail, and as of May Mr. Driver had not complied with with the court to turn over his records. The papers were filed in California, again if I am reading correctly, that is where his business was filed (Oxnard California) his current US residence is listed as being in Nevada.
    What else can you tell us about Mr. Driver?
    Did you see the court papers? Date, court, contacts etc?

  13. Pingback: What’s behind the 100 Huntley Street shakeup? at Bene Diction Blogs On

  14. Jim Files says:

    Relatively Speaking: David Rutledge is a cousin of Ron & Reynold Nainse and are close in age and played together as kids. David’s father in the infamous Ralph Rutledge who had a number of get-rich-schemes in congregations where he was the pastor (Halifax, Toronto, Breslau-Kitchener). Anyway, Ralph and Ron & Reynold Mainse’s mother, Norma-Jean are brother & sister. Ralph is the brother-in-law of 100 Huntley St. founder David Mainse. By the way, there was an interesting book recently written by Miriam Bellamy regarding Ralph Rutledge called ‘Demons In The Sanctuary’

  15. Torontonian says:

    Perhaps Walter is referring to the Circle Square Ranch
    in Brantford Ontario. I cannot find any listing for a
    Brampton.

  16. walter says:

    Sorry right province wrong city! I am still waiting with great anticipation for the others to go down also!

    The other problem for Ron and Reynold is not only expensive criminal lawyers fees but they can now be sued by others who lost money as a result of their participation in this crime as “finders”

    Couldn’t have happened to a nicer group. These ‘religious’ quacks are always asking for handouts (like Benny Hinn) who line their own pockets and in reality throw pennies at charities they set up themselves. Enough of these spewers of intolerance, if you want to do some good in the world go some time in a food bank or helping in a shelter etc – don’t give money to the likes of these tv evangelists!
    Posted by Rev. Dr. Gilliatt | June 8, 2009, 10:27 am

  17. Bene D says:

    Thanks Torontonian.

    Circle Square Ranches (2008)

    Conception Bay South, Newfoundland
    Snider Mountain, Sussex New Brunswick
    Big Clear Lake, Arden Ontario
    Brantford, Ontario established 1985
    Severn Bridge, Ontario
    Austin, Manitoba
    Wolf Creek, Saskatchewan
    Halkirk, Alberta
    Armstrong, BC

    Brantford – http://www.csranch.ca/brantford/

  18. Susan says:

    Bene Diction – Why don’t you discuss the matter of nepotism at Crossroads which also involves Ron, Reynolds and the Rutledges?

    The bible doesn’t teach or advocate nepotism in the ministry! The sons of Eli were corrupt and so where the sons of Samuel who replaced him!

    Any ministry that is loaded with family members leaves itself wide open to criticism and lack of integrity!

    And from friends who had inside knowledge of the going ons in 100 Huntley everything was being done was for the benefit of the Mainse and Rutledges and not for others!

  19. Bene D says:

    Walter:

    1) BDBO’s comment section is not a repository for your emails.
    Are we clear on that?

    The BDBO site policy isn’t difficult, it’s on the sidebar under about.

    1) You do not need capital letter sentences, you are YELLING.
    We’re trying to gather information not foster a vendetta, okay?
    Play nice.

    I am swamped and I can’t go through everything you flood comments section with.
    It’s not fair, but it is how it is for this topic.

    Getting information to investors is primary Walter, working though facts, rumours, speculation and exploring information compassionately is paramount. People are important.

    The opportunity to speak, share and explore this issue involves simple respect – you know that or you wouldn’t be here.
    I don’t believe you mean to overwhelm others, I also believe you do not want to set me up for a libel suit.

    2) The link to your material has been provided. If you put it in a comment again it goes straight into the spam filter.

    I have no information there are criminal lawyers involved,
    nor documentation for your back tax claim.

    You are unique Walter – your need to see justice and righteousness is matched by your tenacity, resiliance and tendency for boundary pushing.

    I’ve banned two readers in six years, I think you are genuine in your desire to help. No need to be the third.

  20. Bene Diction says:

    Susan, I have no problem discussing nepotism at Crossroads Christian Communications.

    I think it’s a very good idea. Thanks.

    Start us off.
    Readers know more than I do.

    I agree that 100 Huntley has left itself open.
    What I’m finding is that people who can or speak up don’t seen to want to go through that door for a lot of different reasons.

    We’re desensitized to so many things – pentecostal nepotism, yawn. Pentecostals caught in ponzi schemes, affinity fraud, yawn.
    Over 100 people have been hurt, yawn.
    We can’t discuss this for legal reasons, yawn.

  21. Walter says:

    You are unique Walter – your need to see justice and righteousness is matched by your tenacity, resiliance and tendency for boundary pushing. BDBO

    Criminals always push boundaries and usually have no boundaries? And so is Huntley street with their stone walling and silence that everything is okay when the wise ones know that it’s not!

    So you want different strokes for different folks?

    The false ones don’t play by any rules so I don’t have to play by their rules either!

    However many people are awaking to the fact that something is wrong with the Mainse even if they cannot put their finger on it!

    And time will reveal all as it always does!

  22. Walter says:

    From: Barry Bowen [mailto:editors@christianheadlines.com]
    Sent: Wednesday, June 24, 2009 1:04 AM
    Subject: religious financial fraud

    Tonight I got the International Bulletin of Missionary Research Jan.2009 edition.

    The researchers that publish the World Christian Encyclopedia have estimated that $27 billion will be embezzled by Christian religious leaders in 2009. A year ago they estimated that $25 billion would be embezzled in 2008. So that is an increase in fraud by $2 billion in one year.

    According to their report, $70 million is embezzled daily.

    The report estimates that this fraud will continue to increase and in 2025 A.D. $65 billion will be embezzled.

    Barry

  23. Claudette says:

    If Ron and Reynolds are not guilty and did not commit any misgivings, why were they removed. One is innocent until proven guilty under the law. It appears based on what I have read that they are not guilty.

    And if they were guilty, let’s think of forgiveness since this would have been their first ocurrence. Note “to err is human, to forgive is divine.”

    Remember, the story of the prodigal son — completely forgiven.

    Remember, other acts of forgiveness in the Bible.

  24. Exodus 21:33 “And if a man opens a pit, or if a man digs a pit and does not cover it, and an ox or a donkey falls in it, 21:34 “the owner of the pit shall make it good; he shall give money to their owner, but the dead animal shall be his.

    Exodus 22:5 “If a man causes a field or vineyard to be grazed, and lets loose his animal, and it feeds in another man’s field, he shall make restitution from the best of his own field and the best of his own vineyard.
    22:6 “If fire breaks out and catches in thorns, so that stacked grain, standing grain, or the field is consumed, he who kindled the fire shall surely make restitution.

    Claudatte in the alleged religious affinity fraud/crime by the Mainse being agents and earning a 5 % finders fee there were real victims who have been hurt and has suffered real losses?

    How come there is no discussion of restitution for the victims by the Mainses who created them?

    Restitution is biblical and it hasn’t gone away just because the Mainse don’t like it and it’s even in judicial system!

    And I don’t like the idea of how thieving lying pastors when they get caught feel they should be treated differently from the rest of the folks because they are special folks! But are they really special folks especially when they will not face up to the fact that they did something wrong like the Mainse are doing?

    I see the same deception all over again with the Mainses just like with the Straders! The Mainse cannot be guilty of anything because they are good fearing folks and preachers and are sincere in all that they do! And of course there is never any talk about the consequences of their acts nor of restitution for the victims! Somehow these preachers feel because they are “men of God” they are exempt from consequences and restitution and their victims don’t matter?

  25. Pingback: Miracles and Prayer Rev. Ralph Rutledge 11-30-08 | Victor Theriault MD

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>