100 Huntley Street starts publicly dealing with alleged affinity fraud

According the the Association of Certified Forensic Investigators of Canada, 2 out of every 5 businesses in Canada will be defrauded.

Churches and par-church organizations are easy targets, such as 100 Huntley Street/Crossroads Christian Communications.

I watched a documentary on Bernie Madoff last night, which got me thinking.

I’ve been clear as I’ve looked at Gordon Driver/Axcess Funds/Automation and the yanking of Ron and Reynold Rutledge as hosts of what was once the top religious show in Canada; that I’ve approached Crossroads Communications with direct questions by email.
They’ve chosen not to respond. 
I am not the only one who has not been given answers to basic questions from the tax exempt organization.
I believe the reality is 100 Huntley Street and Crossroad Christian Communications are not going to respond. As a tax payer they do answer to me, but they have much bigger problems than a nosy blogger right now. As a tax payer I have choices. I don’t have to give them a donation. I can report concerns to Revenue Canada and if I see any regulatory breaches in their broadcasting mandate, the CRTC.

I’ve also been clear that  I think Ron and Reynold Mainse were victims of the alleged ponzi scheme, and were not aware they were victimizers. I don’t think they have the smarts. I’m not saying that unkindly.
These men grew up in a very small circle of sheltered Canadian pentecostals in intermarried and  intertwined families whose  visionary parents were type A driven personalities. 
Sons of a preacher man are expected to step in their father’s footsteps and carry on the legacy whether they are suited for the responsibility or not. Their lives really are not their own.
I think Ron and Reynold Mainse and perhaps David Rutledge (my internal jury is still out on him) are a very public and classic example of the naiveness common in affinity fraud victims.
They have lived and worked in a closed faith environment where affinity fraud artists find a field ripe unto their personal harvest.

According to the Association of Certified Forensic Investigators of Canada people such as Ron and Reynold Mainse and their cousin David Rutledge involving others in an alleged ponzi scheme do not always meet the criteria of criminal intent.  Investors have blinders on (I think that was glaringly obvious in the Madoff documentary.:^).   While there are a lot of organizations, regulatory boards and individuals warning faith groups to take responsibility for their investments, people continue to be scammed for all kinds of reasons and may draw others into the con mans game for the following reasons. 

  • stupidity
  • bad decisions
  • rumours
  • personality conflicts
  • human error
  • breach of contract
  • incompetence
  • arrogance
  • speculation
  • popularity contests
  • civil disputes
  • red flags
  • In 2004 Christianity Today published an article called The Fraudbuster which is as relevant to 100 Huntley Street today as it was when the magazine published this story.

    My focus, while I’m not immune to passing on speculation and gossip about what the heck is going on at Crossroads Christian Communications, has been on the over 100 people US regulators say were taken in by Hamilton/Las Vegas resident Gordon Drivers alleged ponzi scheme.  The psychological impact of being conned is devastating. None of the investors who have found this blog are in the public anger stage as yet, and since it was a small circle of mostly large dynastic Canadian pentecostal families and close friends who were approached to invest, I don’t know if investors will find the courage to band together, do their homework and contact a good class action lawyer. 

    One of the details I can’t pin down and readers don’t know as fact is whether or not Canadian investors have been approached by OSEC investigators. As the civil case involving Gordon Driver/Axcess goes through the US court system, there is no word on whether or not US regulators will proceed to a criminal trial.  Where does that leave Canadians?

    The Ontario Exchange and Securities Commission working with US regulators filed a temporary order against Gordon Driver, his companies and David Rutledge, who left 100 Huntley over a year ago to work for Driver.  Crossroads Christian Communications didn’t bother to update their webpages, and as recently as last week David Rutledge was listed as an employee.  Crossroads is updating their webpages now, they are cleaning up information as fast as they can.

    Why are faith communities such as 100 Huntley Street such easy targets?

  • Lower interest rates and a volatile stock market cannot provide the kind of returns many baby boomers need for retirement
  • aging and fearful faith population worried about their retirement years want a quick return for their investment buck
  • investors who have lost in events such as the 1990′s tech bubble are wanting what they lost built back up
  • trust in the ministry community and your personal faith can make ordinary people easy targets, religious affinity fraud is a very common scam
    • Affinity frauds target any close-knit group—united by race, religion, or a common interest. By posing as part of the group, perpetrators bet on the trust members have for each other. They learn the language and concerns of the group, build a sense of commonality, and then offer the “investment opportunity.” By this point, many Christians instinctively trust this “brother in the Lord” and don’t think it necessary to investigate.
  • There are some Christian circles where mistrust of government is greater than mistrust of con men
  • Investigators find many Christian communities and scammed investors hard to deal with, they have been taught to equate their victimization with a lack of faith
  • Some Christian groups shame defrauded investors by letting them know that if they co-operate with investigations they are no longer part of the community they have known. It is not uncommon for scammed investors from churches and ministries to refuse to testify. Scripture is used as a powerful weapon to silence defrauded members of the community.
  • Investors don’t understand the thinking of a con artist who is an expert in affinity fraud. The fraudster plays on investors fear, greed, need and belonging while easing their targets conscience, assuring them they are furthering God’s kingdom, their investment comes from God, and they are giving to God. (I saw that on the Madoff documentary last night,  US Jewish synagogues attendees targeted believed they were pleasing God) It’s a double points reward lie isn’t it? Reward on earth and reward in heaven.
  • Many Christians will swallow their losses because they don’t want to send a fellow Christian or Christians to jail, they’ve been taught to do so is a sin. To discuss, inform, warn and work through being scammed is labelled as gossip,  and another sin to add to the shaming to silence victims. It’s like a secondary con. 
  • As ponzi schemes unravel, people take sides and more damage is done to everyone involved and the organization involved. Rifts are never healed, and many fraudsters who target Christian communities move freely on to the next one.
  • One of the questions being asked is why isn’t media picking up this story?

    National Canadian media are aware, in the world of ponzi schemes Drivers alleged operation is not huge. What makes this a story for national media is who was targeted and what the organization is doing about it.

    As I’ve romped around online trying to get information on of the things I’ve noticed is how little attention Crossroads Christian Communications and 100 Huntley Street actually gets.

    There is almost nothing. The occasional blog mentions “I’m going to be on 100 Huntley” or “why hasn’t CTS (the non-profit business of Crossroads Christian Communications) released their fall schedule yet?”
    The company is not what it was, and since I don’t have access to the BBM, I think I’m making a safe guess that viewers are a diminishing older group who don’t spend time online.  
    Having posted the Alexa and Quantcast numbers, it’s apparent 100 Huntley’s web presence is continuing in a slow decline.

    While Pentecostals and independent pentecostals are one of the fastest growing faith groups in Canada, this media organization is not keeping pace. I question if they can.
    Financial sites have picked  up the US civil case filing with the barest of details. That’s their job.
    No media outlet in the US cares that what was once a major religious show in Canada is scrambling to prepare for the worst.
    Canadian media outlets will run this story, whether or not they get co-operation from Crossroads is an unknown. If viewers cannot get a response to simple questions, and The Hamilton Spectator reporter is ignored, it’s hard to do a decent story.
    I’ve seen no mention of this in Christian magazines and media across Canada yet. How are they going to report this? I don’t understand financial information and spent far to much of my time just trying to learn basic language. Christian magazine writers are at the same disadvantage I am. 
    Worse perhaps. There are a lot of stories to cover, and only so many hours in the work day.
    I don’t know if Canadian religious media can afford to report this story, at best we may see a few fluff pieces, Canadian Christian media is an insular world that is too small for transparency, tough questions and critical comment.

    A couple of blogs have posted about Gordon Driver and Ron and Reynold Mainse being yanked as hosts. That’s it. Why? My sense is the show is not relevant to faith bloggers, the alleged ponzi scheme information is complicated and why post on a ministry who treats staff poorly and is in the usual rut of running behind information and attempting to micro manage what the public ‘should’ know. 
    Why ask the online community to care? 
    Crossroads is not a media organization which handles being in the news, or the new well at all.
    Their communication skills off air leave a great deal to be desired.

    Readers have pointed out Jim Cantelon’s interesting cherry picking of scripture when the board buried the announcement pre-show a couple of weeks after the hosts disappeared. Another reader pointed out the current Crossroads board CEO, Doug McKenzie also sits on Jim Cantelon’s VisionLedd board and asks if that information is open and available. People have asked if Norm McLaren’s re-Tired means he decided to leave or it was mutually agreed on.  No one at Crossroads thought it was important to take David Rutledge’s information down until a few days ago.

    Canadian national media know about Gordon Driver, and I think when they chose to run with any one of the varied angles of this story, they will be a lot clearer to the public and fairer to Crossroads, than Crossroads has been to it’s employees, donors and viewers.
    I have not hidden my disappointment in how this ministry/company has communicated. 
    When BDBO comes up in the top of searches about a once thriving ministry being scammed, I’m not the one with the problem.  Over the next few days I hope harmed investors, concerned donors and puzzled viewers have far better resources to go to than this blog.

    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.

    11 Responses to 100 Huntley Street starts publicly dealing with alleged affinity fraud

    1. Peter V says:

      I just wanted to say that it is true that all to often Christians will ignore certain wrongs they notice others do. They either don’t want to create a problem, or they think its wrong the report a fellow Christian.

      We need grace these days but we also need accountability.

      Great stuff, keep up the good info.

      Peter V
      LeaderCast.com

    2. Tim says:

      I agree Peter.

      Further, there is a tendency – particularly in the more charismatic circles – to over spiritualize some but not all situations.

      These same circles can in certain circumstances default to the characterization of the investigations of the requisite authorities as a direct attack from the depths of hell and in response they may seek by every possible means to lockdown and protect.

      Yet in this subject scenario the fortress, surrounded by many earnest, loving, well intentioned and praying Christians has been breeched – even though God is Sovereign. We can be assured that God wasn’t sleeping through this nor was He turning a blind eye.

      How could God allow this to happen? Might it just be that He has had enough and is taking steps to clean house? There are some huge examples in Scripture of the God who is slow to anger but when His patience snaps you’d better watch out!

      Rather than this being a direct attack from the depths of hell might it just be that God is now forcing His people to a path of accountability and flexing His muscles to remind them why He is indeed Almighty God.

      In other words, God is being God! After all, righteousness and justice are cornerstones of His Kingdom.

      I think the Crossroads Board missed an opportunity to express care and concern for those who have been scammed and have apparently lost a fortune. They could have done so without in any way compromising the position of individuals under investigation. Surely that would have been the right and caring thing to do? It would have helped them look a tad more pastoral and concerned if at any point it emerges that Crossroads supporters have lost money through this scam.

      Thank you BD for sticking with this.

    3. scubala says:

      Gord Driver, not the same guy who ran “Centre Sound Productions”, at Toronto’s Evangelistic Centre, especially Monday nights with a young faith healer named Benny Hinn?

    4. Brianmpei says:

      Don’t you think that this scheme and the church’s weakness for such is because deep down we believe God wants us to be wealthy and He will bring us extraordinary ways “to be blessed”? If I’ve heard the “transfer of the wealth of the wicked” preached once by the Crossroads gang and their connections, I’ve heard it a thousand times. Jesus just isn’t enough for some of us.

      Thanks for staying on this Bene.

    5. Chris says:

      Please note that CTS is an entirely separate entity from Crossroads. Crossroads is a charity, CTS is a not-for-profit commercial operation with its own Board and mandate. Crossroads and their 100 Huntley program pay CTS for the airtime. CTS in return pays Crossroads to rent their facilities in Burlington.

    6. Bene D says:

      Chris, yes that needs to be clear.

      CTS rents studio time to Crossroads. CTS rents the facility from Crossroads.
      Crossroads is a charity, CTS is a not for profit commerical enterprise.

      There is a good article in Broadcast Dialogue by Scott Lahane, January 2009 on CTS, how they juggle the crews, studio rental time, programming promises.

      Can’t pull up the mag – the article is: LIVE TO AIR PRODUCTIONS, CTS TV DOES MORE THAN ANYBODY ELSE

    7. Torontonian says:

      Hello BD,

      I have found the article by Lehane and it is at this link:

      http://www.broadcastdialogue.com/article_view.asp?action=view&idnumber=590

      Hope it can be of some help to you and your readers.

    8. Bene D says:

      Chris: An alert reader sent this information in. Doesn’t change the distinction in CTS/Crossroads but it is relevant.

      Email:

      “The article has some errors in it, the potential viewers versus actual viewers are of course a discrepency. There are places in Ontario which do not receive CTS by cable – the potential audience shrinks considerably.”

      I don’t watch CTS so I appreciate this effort.

      Article:

      “With a broader mandate as a religious broadcaster, CTS offers shows such as Muslim Chronicle, Israel Today, Insight into Sikhism, Voice of Hinduism and various others to meet its “balanced programming” licence requirements – 20 hours through the week, with 12 hours in the 6:00-11:00 p.m. time slot.”

      Email:

      “Most of the other faith broadcasts are Saturday and Sunday nights and it certainly doesn’t total 20 hours and it certainly isn’t all in prime time.”

      Article:

      “Crews here basically turn out at least four hours of programming every single day,” said Maskell. “I’ve worked in the business for 32 years, and I’ve never seen that done anywhere before.”

      Email:

      “The programs are live or live-to-tape and have no retakes. It’s not that difficult to do that type of programming where there is no real script or need of camera rehearsals. I’d hate to think the overnight NiteLite, at 2 1/2 hours is part of that 4-hour day.”

    9. tom says:

      y the coverup ? only crooks do that

    10. Bene Diction says:

      Tom, that is incorrect.

      There are active legal investigations going on in the US and Canada.

      When an organization is in crisis they have the right and responsibility to follow legal and financial auditor council.
      Government does it all the time.:^)
      Many innocent people never say a word. While I think they should it’s up to them.
      Many crooks never say a word.

      This is a complex issue, choices are made that may or may not be healthy self-interest.

      If you are saying the silence is harming the public image of the organization, you aren’t going to get an argument from me.

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