The drawn out resolution of the case of Gordon Driver and Axcess Automation, is still being dealt with by financial regulators in Canada and the US. Proceedings have slowly moved forward on paper at least, within the OSC and SEC.
When it comes to people involved, the case seems no closer to resolution as court dates are missed.
Canadians became aware of the alleged ponzi scheme when Reynold and Ron Mainse, hosts of 100 Huntley Street were yanked off the air in 2009. While Ron Mainse was re-instated to on-air host position and given the position of Crossroads spiritual director, viewers were told his brother Reynold had left Crossroads Christian Communications Inc. about a year and a half earlier. 100 Huntley Street viewers were pretty much left in the dark until Ron and his wife Ann (host of Full Circle) were interviewed on 100 Huntley Street before re-instatement a few months later. The Canadian tv ministry underwent significant management changes when news of the case broke in the US and Canada.
Gordon Driver, a Canadian who lives in Las Vegas and Freelton Ontario is being sought by the SEC. Driver was a no show for an agreed US court date in February. The SEC issued an administrative order December 2010 regarding Axcess Automation with a 210 day deadline. The Hamilton Spectator:
Lawyers for the United States Securities and Exchange Commission are asking a judge to force a Freelton man accused of operating a Ponzi scheme to appear in a California court to answer questions under oath about his “ill-gotten gains.”
The SEC contends that Gordon Driver, who lists addresses in Las Vegas as well as Freelton’s exclusive Wildan Estates, has already been a no-show for a February deposition and has refused to respond to the SEC’s appearance requests.
Now the SEC wants a judge to compel Driver to appear so the SEC can determine how much money needs to be paid back and how large a penalty he should receive.
In a December 2009 agreement with the SEC, Driver agreed to turn over his “ill-gotten gains” and pay a penalty, according to the SEC.
Driver and his company, Axcess Automation, are accused of operating a $14-million Ponzi scheme that defrauded more than 200 Canadian and American investors with promises that they would receive returns on their investments as high as 5 per cent a week.
On Feb. 17, neither Driver nor his lawyer appeared at a scheduled deposition hearing in Los Angeles.
While US regulators try to to chase down Driver, the OSC starts another hearing Monday for Steven Taylor, a childhood friend of Gordon Driver, who is also alleged to have been part of the Axcess Automation/Funds 14 million dollar alleged ponzi scheme.
Ron Mainse, son of Crossroads founder David Mainse, and his cousin David Rutledge who is a former employee of Crossrads, settled with the OSC last year. They were named as finders and were ordered to pay back about 400 thousand dollars in commissions they received from their involvement with Axcess Automation/Funds, as well as administrative costs. The OSC found Ronald Mainse and David Rutledge were ‘not party to the fraud.’
The OSC does not have any documentation on a settlement with Reynold Mainse.
Driver was also a former Crossroads Christian Communications Inc. employee. The Mainse brothers and their cousin acknowledged drawing about a third of approximately 200 investors into investing with Axcess Automation/Funds.
Reynold Mainse statement. Ron Mainse videos.
To date, I’m not aware that any of the investors in the US or Canada have recovered a dime of the money they handed over in this religious affinity fraud case.
While religious affinity fraud is becoming depressingly common, this on-going case made the 2010 OSC Enforcement Activity Report.
Working with the SEC and CFTC: Axcess Automation LLC
This case is an example of OSC staff working closely with other regulators, specifically the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). This matter involved activity both in the U.S. and Canada.
In August 2010, the OSC concluded settlement agreements with two Ontario residents who traded in securities and futures contracts without being registered. The trading related to an investment scheme operating out of the state of Nevada by Gordon Alan Driver through his companies, including Axcess Automation LLC.
The OSC, SEC and CFTC have outstanding proceedings against Driver and the Axcess companies. Driver allegedly raised more than US$15 million from approximately 200 Ontario investors. In addition, the OSC has an outstanding related proceeding against two other Ontario residents who are alleged to have also traded in securities and futures contracts in Ontario without being registered to do so.