July 17, 2009 The Board of Directors of Crossroads Christian Communications Inc. (CCCI), is pleased to inform all of CCCI’s faithful partners and stakeholders that we have determined that no CCCI funds whatsoever were directed to Gordon Driver or to any of his corporate entities for any supposed investments. While the Board had no reason to believe otherwise, this fact has now been confirmed to the Board’s satisfaction, through a comprehensive internal investigation conducted by the Board, combined with specific forensic procedures as requested by the Board that were completed by CCCI’s external public accounting firm PricewaterhouseCoopers LLP. The Board continues to observe and carefully monitor the ongoing investigations into the activities of Mr. Driver by official regulatory bodies in Canada and the U.S. We are sincerely sorry about the difficulty and serious concern that many of our partners, viewers and staff have experienced through this challenging situation. Thank you again for your ongoing prayers and financial support, as we press forward to fulfill our mission of bringing the gospel of Jesus Christ to Canada and around the world.
Kerry Carmichael, Chair, Board of Directors
Crossroads Christian Communications Inc.
A forensic audit was a necessary step.
No word of explanation of what other steps need to be taken, or if other outside regulatory agencies are involved or remain involved.
Most people didn’t believe ministry funds were used.
There is no word if personal Mainse/Rutledge investment money went into – as opposed to out of – the ministry, or if Ron and Reynold Mainse received a salary during their time off-air.
In the June Maranatha interview CEO Doug McKenzie indicated:
Is this a temporary step?
DM: We hope so. Mr. Driver’s activities are being investigated in the U.S. and Canada. Once the board has more information about the investigation it will be in a better position to make a fully informed decision on next steps.
The latest board statement says: “The Board continues to observe and carefully monitor the ongoing investigations into the activities of Mr. Driver by official regulatory bodies in Canada and the U.S.” which is observatory, and detached.
Does that mean the board believes the OSC is satisfied there is a finding of no intent by point people in Canada?
Ron and Reynold Mainse were taken off the air while they dealt with “certain matters in the personal lives.” Crossroads Board statement June 4th.
They have stepped down from their duties until such time as the Board of Directors has a complete understanding of all of the issues related to a financial investment matter that they were involved in outside of their ministry at Crossroads.
According to Crossroads CEO Doug McKenzie in an interview mid-June, the board and management were aware of the Driver/Acxess alleged ponzi scheme in April, when the OSC posted it’s first temporary order (subsequently amended). Doug McKenzie:
We learned that there was a potential personal issue for them a few months ago. We learned in mid-April that the OSC [Ontario Securities Commission] was looking into investments they made with Gordon Driver. And subsequent to that we learned that a claim was entered against Mr. Driver by the [Securities and Exchange Commission] in a U.S. court.
…We know that Ron/Reynold had invested with Mr. Driver. While that investigation continues, Crossroads board of directors feels it is best for our ministry that they step aside.
Crossroads employee and Mainse cousin David Rutledge left Crossroads sometime in 2007 to work with Gordon Driver/Axcess. Rutledge remained on Crossroads websiteÂ until June 2009.
In the first wave of investors pre-100 Huntley Street there were somewhere between 30 to 60 investors. No one who knows has confirmed that number.
US court documents indicate investigators believe there are 100+ investors, 15 from the US, the rest from Canada.
Driver appeared in US District Court in June 5th without a lawyer. He had missed his hearing May 22nd because he didn’t have a lawyer. Driver had a few assets unfrozen during the June hearing and was ordered to get a lawyer, get relevant documents to the CFTC lawyers and co-operate fully in discovery so a trial date can be set.
Also attending the June hearing were the FBI, investors, Steven Rutledge and the the SEC and CFTC.
The next US court date for Mr. Driver is the first week of August.
Because investors have not spoken publicly, it does not mean their losses have not been substantial. In some cases people have been financially wiped out.
The Crossroads board has indicated they have a completed forensic audit.
I see no acknowledgement from the board of the substantial and in some cases devastating losses for those who directly invested with Axcess Automation/Funds because of connections and standing within the organization.
It would be prudent for Crossroad donors and employees to remain seriously concerned until appropriate questions to the charity have been answered.
There are many unanswered questions as there have been since the day Ron and Reynold Mainse disappeared off 100 Huntley.
When Crossroads updated their webpages, Ron and Reynold Mainse were not removed.
They are now the face of the ministry and I think the message intent was simple; when would the founders sons be back on-air?
Is financial information from Price Waterhouse PricewaterhouseCoopers going to by made available to donors?
Is the OSC actively investigating the CFTC claim Ron and Reynold Mainse were point people in alleged Axcess software investment? Christian Week:
Did the board do the right thing when it removed the Mainse brothers from their positions at Crossroads? Why did they wait until the Hamilton Spectator story appeared before they took public action? Is there more housecleaning yet to come? How will donations be affected? What other changes are likely? Will the organization continue as a member in good standing with the Canadian Council of Christian Charities?
100 Huntley Street/Crossroads, alleged ponzi scheme timeline
Once again, my sincere thanks to an alert, concerned and informed reader.