The son of 100 Huntley Street founder David Mainse and his cousin have been ordered to pay nearly $450,000 in restitution and penalties to the Ontario Securities Commission for their roles in an alleged Ponzi scheme created by a Freelton man.
Ron Mainse, an ordained minister and a leader of Burlington’s Crossroads Christian Communications, was ordered to repay about $138,000 in commissions he received from Gordon Driver, who is alleged by the U.S. Securities and Exchange Commission to be the mastermind of a $14-million US Ponzi scheme involving nearly 200 North American investors.
Mainse was also ordered to pay a $10,000 penalty and refrain from trading securities or becoming a director or officer of a company that reports to the OSC for eight years. Mainse’s lawyer, Jay Naster, turned over cheques for the entire amounts to the OSC at yesterday’s hearing.
David Rutledge of Ancaster, Mainse’s cousin and also an ordained minister, was ordered to pay back nearly $263,000 in commissions he received from Driver, pay a $35,000 penalty, and refrain from trading securities or becoming a director or officer of a reporting company for a period of 15 years.
Rutledge turned over a cheque for $90,000, has agreed to sell his Ancaster home to finance another $120,000 in restitution and will sign an undertaking with the OSC to repay the remaining $88,000.
The OSC’s lawyer pointed out there was no evidence that Mainse or Rutledge perpetrated any fraud themselves or were even aware that a fraud was being carried out.
The OSC also noted Mainse and Rutledge co-operated fully, voluntarily agreed to be interviewed and provided all documents requested. They will also appear as witnesses in the OSC’s ongoing case against Driver, an associate of his and several of their companies.
…A settlement has not yet been reached with Reynold Mainse, another son of David Mainse, who is also part of the OSC’s investigation into Driver’s investment scheme.
The OSC has indicated that Reynold Mainse, like his brother and Rutledge, is not considered a party to the alleged fraud.
Hamilton Spectator
Ron Mainse, former Crossroads Christian Communications Inc. President is now Crossroads Spiritual Director and Executive Producer of 100 Huntley Street.
Reynold Mainse has subsequently appeared on 100 Huntley Street reporting on Crossroads missions.
Ron and Reynold Mainse were yanked off the air as hosts of Crossroads flagship show 100
Huntley Street in June of last year. Ron was re-instated as a 100 Huntley Street host in November. He stated in a televised interview his brother Reynold and wife Kathy had not been employees of Crossroads for about a year and a half.
A US reader asked a few weeks ago if rumours of restitution were true. The OSC hearing was held Friday. David Rutledge was the former Crossroads Christian Communications Inc. Director of Ministries. Reynold Mainse was Crossroads Vice-President of Missions. Ron Mainse said he drew about 50 or 60 people into the scam, Reynold says he involved 15. The OSC says Reynold and Kathy Mainse drew 22 investors in (at 250 thousand dollars a unit). The OSC settlement agreement with Ron Mainse states 45 investors were taken in. Mainse learned in 2008 a lawyer was concerned about the Axcess commissions. He took another 30 thousand dollars and stopped being a finder. He told the OSC he gave most of his finders fees to charities.
Rutledge and the Mainse brothers are ordained ministers with The Pentecostal Assemblies of Canada. Gordon Driver of Axcess Automation is
from Freelton Ontario and Las Vegas.
Ontario Securities Commission August 13, 2010 David Rutledge/Anesis Investments
Ontario Securities Commission August 13, 2010 Ronald Mainse
Ontario Securities Commission August 12, 2010 Statement of Allegations (.pdf)
From the OSC Statement of Allegations:
Rutledge, Reynold Mainse and Ronald Mainse
30. Between July 2007 and March 2009, Rutledge’s trading in the Axcess Automation Investment resulted in investments by about 45 investors totalling approximately USD 2,051,199.39. Of this amount, Driver paid back about USD 746,507.00 to these investors, which Driver characterized as returns on investments.
31. Rutledge provided prospective investors with copies of the Private Offering Memorandum which described the Axcess Fund Investment.
32. Rutledge received commissions directly, and through 6845941, of about CAD 262,818.92.
33. Between July 2007 and March 2009, Reynold Mainse’s trading in the Axcess Automation Investment resulted in investments by about 22 investors of about USD 4,100,000.00. Of this amount, Driver paid back about USD 2,875,054.00 to these investors, which Driver characterized as returns on investments.
34. Reynold Mainse identified and corresponded with prospective investors and provided them with copies of the Private Offering Memorandum which described the Axcess Fund Investment.
35. Reynold Mainse received commissions directly, and through WCC, of about CAD 210,219.50.
36. Between July 2007 and March 2009, persons introduced by Ronald Mainse to the Axcess Automation Investment invested about USD 86,200.00. Ronald Mainse received commissions of about CAD 138,176.88, most of which were derived from investors in Rutledge’s group.
The document is a sobering read – conduct contrary to the public interest indeed. I’m counting 9 companies involved. Over 100 investors were scammed, most were Canadians. For background on the Axcess Automation/Funds ponzi scheme follow the tags at the bottom of the post. Prior posts include US regulatory body and court documents. Crossroads CEO Donald Simmonds who was quietly brought in late last year reiterated that David Mainse sons were Gordon Driver’s victims, a position taken by the religious broadcaster since the story broke last April.
“One of our strong points in the Christian community is that we’re known for trust, but that trust can be taken advantage of or turn into naiveté at times. They were trusting, perhaps to a fault at that point.”
The OSC alleges
- David Rutledge made commissions of 262,818.92.
- Reynold Mainse made commissions of 210,219.50.
- Ron Mainse made commissions of 138,176.88.
Who gets the restitution money? Lawyers? The government? Investors? (called third parties)
Even a New York Times blog is reporting the Axcess Automation/Funds Mainse brothers involvement. I’m posting the Crossroads Christian Communications Inc. statement below the fold in full because it’s been my experience Crossroads posted information has a habit of becoming disappeared.
Crossroads Pleased OSC Hearing Brings Closure to 15-Month Ordeal
Regulator Concludes Mainse Brothers “Not party to the fraud”
BURLINGTON, ONTARIO – August 13, 2010. – Yesterday, the Ontario Securities Commission issued a notice of hearing and statement of allegations relating to a fraudulent investment fund scheme targeting the Canadian faith community, orchestrated by Gordon Driver, which was exposed by the security regulators in May, 2009.
Ron Mainse, currently on the leadership team at Crossroads, and Reynold Mainse and David Rutledge, formerly associated with Crossroads had, on a personal basis, invested in the fund, informed family and friends about the fund and were offered a share of Mr. Driver’s profits. They were unaware that the enhanced returns Mr. Driver claimed to realize were, in fact, based on the alleged fraudulent investment scheme. In yesterday’s statement the OSC clearly concluded that they “were not party to the fraud”.
During the summer of 2009 a thorough, independent financial audit initiated by the Crossroads Board of Directors confirmed that no Crossroads ministry activity nor any of its funds were in any way involved.
In a nationally televised interview last October on 100 Huntley Street, Ron Mainse openly talked of how he had naively placed his trust in Mr. Driver, whom he had considered a family friend, and did not exercise sufficient due diligence about the supposed investment. Further, he had not appreciated that the receipt in any form of compensation from Mr. Driver was a breach of the Securities Act.
Ron has cooperated fully with staff of the Ontario Securities Commission and has entered into an agreement that was approved at a hearing today, bringing appropriate closure to the matter. The agreement immediately resolves the Commission’s allegations by acknowledging Ron’s mistake, abiding by an appropriate sanction and completely reimbursing any compensation received.
Unfortunately, the faith community can be easily taken advantage of because it highly values trust in relationships. This situation underscores the need for greater awareness and diligence to avoid vulnerability. Crossroads hopes this terrible experience, now concluded, can be used as a caution to others.
I’m not going to have internet access for a few days, so comments will be in moderation.
As soon as possible, what you have to say will be put up.
BD: You’re missing the fact that Ron Mainse said, on the air, that he lost money. This shows that was not true.
Does this mean that Ron Mainse has paid back the entire amount of $450 000? If so, where did all that money come from?
I’d hate to think that much of it has come from Crossroads or CTSTV or some other of its operations under its umbrella.
Quite frankly, I believe Ron Mainse should have no further role at CTSTV or Crossroads for at least 10 years–either visible or behind-the-scenes.
What we have seen are measures to protect the public but I believe further measures are necessary to protect the viewers of 100 Huntley Street and CTSTV in general. Those views underpin my statement above.
This OSC document states Ron Mainse had an interview with the OSC March 19, 2009, some time before news broke in Canada (April 2009) and 2 1/2 months before he stepped away as host of 100 Huntley Street and President of Crossroads.
http://www.osc.gov.on.ca/documents/en/Proceedings-SET/set_20100804_mainser.pdf
I don’t think Ron and Kathy Mainse should be employees of Crossroads either.
I don’t think Reynold should be a 100 Huntley Street guest.
It doesn’t matter what investors or the public thinks. I wonder if it matters what donors think. David Mainse is on a cross-Canada tour trying to drum up money and last I heard Donald Simmonds was attempting to raise 20 million in capital funds for new programming.
This media organization is Mainse centric and this is a business first and ‘ministry’ second. Crossroads management wants this gone, gone now and someone has enough money to make it gone.
You won’t see a peep on the 100 Huntley Street Facebook fanpage, if we do, there will be Praise the Lord’s all over the place. They weren’t harmed. I wish investors would speak. They are the ones who should be listened to and publicly heard.
I don’t know where Ron and Ann got their money, or where Reynold and Kathy will get theirs.
You’ll notice in the Ron Mainse settlement agreement that his lawyer handed over cheques – paid in full.
David Rutledge pleaded his reputation was harmed – he kept going after he heard the lawyers warning and he is bemoaning the fact he has to sell his house. He lives in a soul-less subdivision where all the homes look the same – cookie cutter style. I keep remembering the video I posted of his dad’s birthday party, the family was having a grand time. His dad’s reputation was ruined years ago and when the video was done he had to have known the regulatory hammer would be coming down.
Biblical restitution takes different forms for different crimes. (The act of returning or restoring to a person some thing or right of which he has been unjustly deprived; the act of making good, or of giving an equivalent for any loss, damage or injury; indemnification) These guys aren’t Zacchaeus. They’ve taken a step expressing remorse and returning their ill-gotten gains – they got caught and confronted with limited choices. Are lessons learned and will they sin no more? The OSC has reined them in for several years, that may help. Now Reynold Mainse has a settlement to reach.
The OSC documents also show Steve Taylor getting $1,355,000 in commissions.
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I haven’t focused on Taylor True, not because he isn’t involved, but because he hasn’t been swirling around a major Canadian religious media organization.
I hope people take time to read the documents. Just because Crossroads issues a news release saying they’ve put this to bed, doesn’t mean investors, viewers, the public, US regulators or others have put this to bed.
The OSC is back at this again in October.
When readers see what has happened, there will be empathy for those who have to pay back the ill-gotten money they recieved. You can’t help but feel sorry for these three guys, even though they operated in ignorance, and ignorance is no excuse when many good hard working people including myself lost thousands of dollars.
So their names are in print, the amounts they have to pay back are in print, the fact that they may sell their houses is in print, this is sad. But what is even more sad, is it is very likely that someone or many will come to their rescue, pay part or all of their bills and it will be over for them.
But what about us, the true hard working investors who put in our real money, not illegal money from commissions that were fake, not bank loaned money, but honest hard working money.
What about the OSC or someone printing a public list of all the good people who lost millions here. Who will feel empathy for them and help them to get some or all of their money back.
The OSC knows exactly to the penny every dollar invested, and every investors name. They know when they invested and if any got paid back anything on their investment.
These three guys lawyers know all the same information also.
Maybe we should let the Guelph Mercury or the Globe and Mail print the true investors story so they can be helped instead of the guys who ignorantly brought the good and true investors in to this fraud.
Do you understand what I am saying here, checks will come in for Ron, Reynold and David, friends and relatives will come to their rescue, but none of the other true investors will be rescued.
I know one man who lost over $100,000.00 dollars in this fraud, money for his children’s schooling, money he worked hard for, what about him and others.
If anyone helps these three guys without first helping out the good people who genuinely invested their real money, then that is fraud and should not be allowed.
Funny how everyone gets real quiet in times like these?
Once again, wondering?
100 Huntley Street just announced it needs more than $700 000 by month’s end for the
fiscal year-end.
Ron and Ann are front and centre at the opening of the program and I truly wonder how well this fundraiser will be.
I read how Ron M. cut the cheques in full …. gee slap on the wrist ~ phew! “Back to the spotlight!” He had a 10k fine which should be jail time “not guilty by ignorance”? Gee, would that work for everyone? Ron confessed he did no due dilligence. “Out of your own mouths” ….
“Reynold says he involved 15. The OSC says Reynold and Kathy Mainse drew 22 investors in (at 250 thousand dollars a unit).”
Hmm, who is correct here? Methinks the OSC is. I am sure Reynold knows how many – and knows Grade 3 math. And at 250k a pop???? That is a LOT of ca$h trusting folks paid to that scumbag Driver.
Who is going to hell as he has no conscience which is the prerequisite for repentance. The bible is full of references to the fear of God and hardened necks, and how behavior reveals true character. Repentance is a GIFT which is not an insurance policy – says the Bible – and not to be treated lightly, [though one will never hear a sermon on it, just The Shack and Message crap] just another Madoff clone ….. Dov Zakheim type?
———
PS, watched 100 “H” Street this morning and it opened with [dyed hair] Ron and his pal Jim Can’t-elon all bubbly and effervescent on how they will rake in $732,000 in 2 weeks. Giddy as all get out, giddy-up.
Hard to believe the Mainse bros. didn’t have an inkling of what was going on when the Bernie Madhoff ponzi scandal was hitting the news last year.
At the very least they should have raised an eyebrow. Or notice some troubling similarities.
But they maintained they were “shocked” when the news broke. Shocked, I tell you.
Ronald Mainse and Rutledge appear to have called ”time” on their involvement following the advice of a lawyer that aspects of the scheme were “offside”. Surely Ronald and Rutledge shared their concerns with Reynold? What also of the role of accountants – surely an accountant or two would have warned against this scheme?
Thats the problem facing Christendom today is a complete lack of decernment. I’am sure there was a day when the Mainse brothers believed they heard from God concerning this lucrative business venture. Whose voice were they really listening too? In this hour if there is to be God ordained leadership for the dark days ahead those individuals must come forth from the wilderness and not the seminary at Jerusalem. It is in this place the Potter perfects the hearing and obedience of those vessels of clay he wishes to use.
Any volunteers?
i just feel bad for their kids.
simple as that.
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Looks like the Mainse-Rutledge Candian religious cabal is coming to an end and will not see a third generation..
With these three having to pay back what rightfully belonged to other legitamate investors, plus their fines, I have a serious concern.
Whatever final amount will come in from Reynold, Ronald and David Rutlege, that must be paid back to the true innocent investors.
If lawyers take their expense out of this money that is wrong, these three must pay all the legal fees over and above this money being returned, because that money being returned belongs to investors not lawyers, and these three guys are responsible for the legal fees. Lawyers should not touch one penny of this money, they must be paid out of the pockets of these three finders.
Please respond if you are one of the lawyers handling this circus.
Some may of read my own comments on Benedictionblogson on a few threads past and I would not want to repeat what my experiences were while I was an employee at CTS – TV since it is a very protracted write-up. But some members within the leadership of Crossroads and CTS should have been terminated a very long time ago for the continual incompetence and corporate bullying of employees along with extreme chincanery and significant negligence from ceratin senior management types in the years past.
The disenfranchised investors in this ponzi scheme are scarred for life and full recovery is doubtful. Even though I was not one of the investors I can empathize with them to a certain degree. In my own technical department when I worked for CTS-TV, some employees were recipients of salary skimming. Certain employees over a period of time were systematically short-changed wages over a period of years. When some of us discovered this underhanded issue and addressed it to the then VP of Human resources of Crossroads, ( this man is now in another very senior level position within Crossroads and frankly he should not be since he has dealt with so many other employees with deceptive standards) he was outright enraged and upset that we would address this matter and he would put on a self-righteous attitude that we had no right to address such a matter and we should keep our mouths shut. Yet Crossroads claims to adhere to a policy of equity and compensation based on experience.
This attitude of deception and aggressive evasiveness from certain senior level management obviously permeates into other aspects of Crossroads dealings with employees, also how Crossroads in various ways relates to the public and now to investors who are tainted with added emotions that words can not describe.
IT IS HIGH TIME and I call on it that there should be more extensive mainstream media attention given to expose methodologies and inner workings of some of Crossroad’s senior managerial tactics from the last few decades. I will have more to say in time to come.
And one more note for the time being – The investors who are severely affected and tainted by this whole hurtful process, go to the media and tell your stories, please do not be reluctant.
I don’t know if there has been a change, even though there are slight changes in management. Big announcements, big talk. A few actual plans to back up the bravo.
The last week of August along with a fundraiser (asking for 700 thousand) the new programs in development were highlighted. Youth is the target. That’s the term Crossroad air team used. Target. They are the Crossroads donors of tomorrow.
A new night show with Melnichuck of What I Do, a devotional for college kids called Mama’s Blessing, a partnership to develop curriculum with the Sally Ann for 7-10 year olds and the couch ladies get a daily Full Circle on CTS.
The internship (free help) and 1000 citizen journalists (free content) they are begging for has been pushed along with the Franklin Graham Rock the River showings on CTS.
Jon Oleksiuk says he has a teen comedy in development to counter Hollywood. He’s asking for writers disillusioned or alienated in the business. They’d have to be union, wouldn’t they? And wouldn’t the teen actors and dancers would have to be carded> He calls it wholesome alternative and plans for next season.
Graham is too much of a hero to people who don’t care if he gets puff pieces from Lorna Dueck as long as they don’t have to notice his political involvement and bigotry in the US.
Investors!!! Some are starting to respond, if you invested in the Gordon Driver Ponzi scheme, we need to hear from you. Send your email to benediction blogs and if you like, make it an anonymous email, we want to hear your story and be able to communicate with you quickly.
We may hold a public meeting for all investors or a webinar or something so that at least all investors who were deceived and taken financially can have some idea of what is happening.
Create an anonymous email and send it to benediction blogs and we can begin dialogue on this whole investment scam. You don’t have to lose everything, at least you can obtain knowledge of what is happening.
Send your anonymous email to benediction blogs, or if you like use your current email, it will be kept strictly confidential
Anyone know the haul they took in? I usually watch Huntley but they did NOT disclose how much ca$h was coming in, in any of the ones I saw anyways. I am guessing they reaped a ton of money and did not want to stem the flow. A lot of folks sent in thousands, and many sent in many hundreds so do the math.
PS: count the times they name drop Billy Graham Israel Jerusalem, evil Iran etc per episode!
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