Ron Mainse of 100 Huntley Street makes statement on alleged ponzi scheme

From Crossroads Christian Communications Corporate page, September 14, 2009

Dear 100 Huntley Street viewers and supporters of the Crossroads Family of Ministries,

I’m grateful for this opportunity to share with you some details as to why I have not been part of our daily programming over the last few months. First of all, I want to thank so many of you who through cards, letters, emails, and phone calls have shared with Ann and I your love and concern letting us know your praying for us. This has meant so much to us, and we want you to know that your encouragement and prayers have made a significant difference.

A couple of years ago, I was presented with an investment opportunity by someone I considered to be a close friend. He described how he was managing an investment fund that was experiencing very high returns for his investors, and he wanted to extend the opportunity to me, as well as to any of my family and friends. He said that his goal in operating this investment was especially to bless those who are followers of Jesus, who would in turn provide funds for Gods Kingdom Purposes. We decided to invest, and we also relayed the opportunity to some family and friends. In addition, this man said that he would like to further bless us by giving us a small percentage of the profit that he was making through his role as a trader, specifically for any funds invested by our group of family, friends or others, I naively accepted his offer, not realizing one must be properly licensed to receive any sort of investment commission. On May 15th of this year, we were shocked to see an official report that stated the conclusion of an investigation, which alleged that this man, in whom we had placed our trust, was actually running an illegal investment scheme. It became painfully obvious that we used poor judgment in simply trusting this man’s word and encouraging others to invest, without seeking the advice of those who are knowledgeable about the investment world. It’s very difficult to convey to you how greatly grieved I am about my role in this whole situation, as a number of people for who I care deeply were seriously hurt, in my involvement likely gave them a level of confidence that this was, as I thought, a legitimate investment opportunity.

As a result, back in May, our Crossroads Board of Directors decided that I should step down from public ministry until the various issues are sufficiently understood and dealt with. Our Board Members seek Gods wisdom and heart on every matter and only want what’s best to fulfill Gods purposes at Crossroads. I have asked Gods forgiveness and I pray that those who have been hurt because of my participation will find it in their hearts to forgive me as well. I am also taking steps to make full restitution of all of the funds I received, so that there’s absolutely no personal benefit to me resulting from any of this. Further, Ann and I and 2 of our children have lost everything that we had personally invested.

I continue to search my heart and pray, as David did, for God himself to search me and know my heart, my thoughts and my motives. I have spent many hours in prayer about how I could have made such a poor choice in placing blind trust in this individual. God has truly brought me to a place of brokenness and in this place I’m sensing a new depth and refinement in my spirit and a greater discernment of Gods voice regarding life- decisions. Through all of this, I’m comforted in knowing that we serve a God of redemption, who can take a dire situation and redeem it for His ultimate purpose. The promise of Romans 8:28 has taken on a fresh meaning for Ann and I. “All things work together for good, to those who love God, to those who are called according to his purpose.”

Well my love for God is stronger than ever, and I am still “called according to his purpose”… So I know the “good” is on its way. For over the last few months, I have been seeking His purpose and preparing my heart and mind for however God wants to use me in the future. I concluded long before taking on the role as President that Crossroads is His ministry… certainly not mine… and I welcome His work of refinement in me so that when we look to the future, He receives all the glory.

Your continued prayer and support mean more than words can say. Thank You so much, and God Bless You.

You’ll see strong similarities in the professionally coached wording of his brother Reynold’s statement. In not naming the person (nor naming the other person in the OSC ruling), in not saying how many investors Ron drew in, and how much he made in finders fees, I wonder if the brothers had the same lawyer and advisers help them write these statements.  The ChristianWeek interview with Reynold Mainse give some insight into where he is at and wants to be.

Reynold and Ron Mainse statements do not square with what their father David Mainse said on air this summer about media gossip. They have admitted they were finders in the alleged ponzi scheme. Canadian Christianity has a statement that both brothers took a financial responsibility course for leadership prior to being involved with this alleged affinity fraud.

If Ron Mainse is going to pay back those he drew into the alleged scheme, where is he going to get the money?  Why have neither brother been forthcoming about how much they made as finders and how much they lost in investments? ( Added. See points of clarification in the comment section, is the restitution payment of the finders fees and where will that money be going to? – BD)
I think Reynold and Ron’s statements are a start, the board statement in the post above really doesn’t say much of anything. Again.
Have he his wife and his brother and his wife remained on the Crossroads payroll since being yanked off the air?  Who is going to administer these returned funds to harmed investors?

Time is running out for Gordon Driver. While the judge in the California civil case against Driver/Axcess Automation/Funds didn’t set a date after denying his motion for release of seized funds for his defense, sources close to the case say he has about 45 days to get a lawyer. There is an active US criminal investigation and as the clock ticks, charges may have to be laid.

And we do not know what is occurring  on this side of the border. Is the OSC still actively investing as Crossroads board and CEO have hinted at? We do not have full knowledge of legal impropriety in Canada,  or choices available by the SEC and California criminal investigators.
 Moral judgement remains an elephant in the Crossroad building.
As does communication decisions as a charity to the public. Viewers have every right to ask questions. I don’t have hope they’ll get answers any more than I have hope investors will see justice and any financial recovery. There is no encouragement from Crossroads to investors to speak to regulators, which would not only empower those who trusted, but also Crossroads maintain the accountability they keep saying they are seeking.

Is something coming down? Is this a pro-active statement to lessen possible ramifications, or get the Mainse back into their management positions and back on air?

What do you think?

I’ve put the brothers statements below to show the similarities in writing etc.

Reynold:

My mistake was in trusting someone I believed to be a friend. I believed the words of this person that I have known for years and this apparent deception has led me down a path that has brought pain to many, as well as my family. What appeared to be a wonderful investment opportunity that would help my family and strengthen the Lord’s work is turning out to be quite the opposite. What a shock to read my name in the SEC report and the newspapers in the same paragraph where the word ponzi scheme is written. I suppose being somewhat high profile; the newspaper reporter felt it necessary to name my brother and me as some of the investors and as people that were used by this trader to introduce some people to alleged scam.

[snip]

This investor person said he wanted to help my family as well as strengthen the ministry that God has led Kathy and me into by giving us a percentage out of the profit that he was making for his role as the trader. As I did not have much money to invest in the first place, I thought this offer was a further blessing. However, I came to find out over a year later that one apparently needs a license to get any compensation when it comes to the stock market.

Ron:

A couple of years ago, I was presented with an investment opportunity by someone I considered to be a close friend. He described how he was managing an investment fund that was experiencing very high returns for his investors, and he wanted to extend the opportunity to me, as well as to any of my family and friends. He said that his goal in operating this investment was especially to bless those who are followers of Jesus, who would in turn provide funds for Gods Kingdom Purposes. We decided to invest, and we also relayed the opportunity to some family and friends. In addition, this man said that he would like to further bless us by giving us a small percentage of the profit that he was making through his role as a trader, specifically for any funds invested by our group of family, friends or others, I naively accepted his offer, not realizing one must be properly licensed to receive any sort of investment commission. On May 15th of this year, we were shocked to see an official report that stated the conclusion of an investigation, which alleged that this man, in whom we had placed our trust, was actually running an illegal investment scheme. It became painfully obvious that we used poor judgment in simply trusting this man’s word and encouraging others to invest, without seeking the advice of those who are knowledgeable about the investment world. It’s very difficult to convey to you how greatly grieved I am about my role in this whole situation, as a number of people for who I care deeply were seriously hurt, in my involvement likely gave them a level of confidence that this was, as I thought, a legitimate investment opportunity.