Ron Mainse is the director of broadcast interests at Crossroads, and was co-host of the flagship show 100 Huntley Street. His brother Reynold also hosted at 100 Huntley Street and was VP of Crossroads Missions.
The statement from the board June 5, 2009 was terse and viewers were assured twice by Jim Cantelon that Crossroad funds were not involved.
“Hello I’m Jim Cantelon. You’ve noticed over the past few days that there have been changes in the opener in terms of the opener of 100 Huntley Street; you’ve been looking for Ron and Ann, you’ve been looking for Reynold and Kathy.
Well the board of Crossroads have asked me to inform you that Ron and Reynold Mainse will not be appearing on any Crossroads programming or otherwise represent Crossroads for the time being as they focus their energies on certain matters in their personal lives. They’ve stepped down from their duties until such time as the board of directors have complete understanding of all the issues related to a matter that they were involved in outside of the ministry here at Crossroads.
David Mainse, Moira Brown and I and other guests will continue to offer interesting, I hope, exciting interviews and stories on 100 Huntley Street from across Canada and around the world.
100 Huntley Street, which is a ministry of Crossroads Christian Communications was launched in 1977 by Crossroads founder David Mainse and in it’s 32 year history, Huntley Street, one of Canada’s longest running live daily television programs has faithfully presented the truth of the gospel of Jesus Christ, as you know, along with countless inspiring individual stories of faith to a growing national audience.
Today Crossroads stands apart as the largest and the most prolific media communications ministry in the country. Crossroads board of directors, it’s executive leadership, it’s unparalleled team of dedicated people are ever more committed to excellence in and through it’s programming, it’s global missions programs and it’s children’s camping ministries.
And we’re grateful to God for the thousands of partners who continue to financially and prayerfully support the work of Crossroads and we thank you for your kind consideration of these comments.
Hamilton Spectator Local man accused in $14m ponzi scheme
I asked Dr. Mark Byron an instructor of finance, economics and management at Sullivan University in Kentucky to break down the financial and regulatory complexity of Axcess Funds run by Gordon Driver. Used by permission.
His information below the fold – Innocent Greed
…It seems that some of the folks behind the Canadian Pentecostal TV show 100 Huntley Street (it’s been compared to the 700 Club but seems more like the Crouch’s stuff on TBN that that from what I’ve seen of it) were victimized in a Ponzi scheme revolving around commodity trading; at least that was the cover. The folks behind the scheme lost a small fortune on trading but took in a larger one from “marks”.
Bene’s asked for some professional help from his finance buddy-”Post away on your blog, if I’m reading this right it appears the two Mainse brothers [sons of the show's founder] were finders, however I don’t understand enough to say that. Either way, huge blow to this Canadian ministry. People are hurt. ”
According to this Hamilton Spectator piece, the Mainse brothers were what the piece called “finders” who were helping the purported scamster, Gordon Driver, who worked at 100 Huntley Street as a teen.
Driver testified that he was going to sell a computer to Reynold Mainse, Ron’s brother, when Reynold noticed some charts on the computer related to Driver’s supposed trading software.
Reynold Mainse became interested, Driver testified, and eventually invested some money. Ron Mainse also became an investor.
In Driver’s April 23 testimony, he alleged the two Mainse brothers also acted as finders, bringing other investors to Driver.
A lot of money is spent on prediction software working on “technical analysis”, trying to make predictions of future stock and commodity market behavior based on past patterns. Such analysis tends to be descriptive of past returns but typically does a lousy job of predicting future returns, with any profits from such programs getting eaten up by trading commissions; at least that’s what I teach my finance students. Please note that the technical analysis isn’t fraudulent in and of itself, but just not overly effective as a general rule.
That being said, such technical analysis gets played up on financial TV shows (the purdy pick-tures of technical charts make “better” TV than fundamental analysis, much as audience members getting slain in the spirit makes “better” TV than serious Bible exposition) and tons of folks, including the Mainses, can get suckered in.
Meanwhile, onto the company pulling off the scam. I looked into the Securities and Exchange Commission’s EDGAR database for any record of Axcess Automation; publically traded companies have to file quarterly 10-Q and yearly 10-K forms of financial data and other information. No such luck.
There is a Texas-based Axcess International (the report has them incorporated in Delaware, but most big US companies have their titular HQ there to take advantage of Delaware’s permissive corporate governance laws) that specializes in miniature tracking devices (RFIDs); here is it’s latest quarterly report (10-Q) with the SEC for the first quarter of 2009. Despite bleeding red ink for the last five year, they seem to have enough promise to have secured new stock investors for the last five years per their statements of cash flow.
If you’d like to take a flyer, you can buy them for US$0.41/share per MSN Money’s page on AXSI. However, they’re so risky that they are traded over-the-counter, not on NASDAQ, well meeting the definition of “penny stock.”
However, that’s not the critter that seems to have gotten the Huntley Street boys scammed. The SEC has no record of them. That’s entirely possible, for they generally regulate only publically-traded companies. Many mom-and-pop companies with a small number of investors don’t have to deal with them, and if Axcess Automation didn’t have enough investors to warrant a SEC filing, they might not be on their radar.
Next stop, the CFTC, who regulates the futures markets in the US; it’s an oddity of US finance where the CFTC is part of the Agriculture department, since it was ag futures that they first started overseeing before oil and financial futures became the biggest part of that market. They do know about these guys and shut them down last month.
The U.S. Commodity Futures Trading Commission (CFTC) announced today that on May 14, 2009, the Federal District Court in Los Angeles, California, entered an order freezing the assets of Gordon A. Driver of Las Vegas, Nevada, and his Las Vegas-based companies, Axcess Automation LLC (Axcess Automation) and Axcess Fund Management LLC (Axcess Fund Management). On the same day, the CFTC filed a complaint charging them with fraudulently soliciting commodity pool participants, misappropriating participants’ funds, and issuing false statements to participants in a $13.5 million fraud involving over 100 participants in the United States and Canada.
“Domestic and foreign regulators will continue to cooperate and combine our resources to combat the pestilence of Ponzi fraud schemes that cross borders,” said CFTC Acting Director of Enforcement Stephen J. Obie.
The CFTC complaint alleges that, from at least February 2006 through the present, the defendants defrauded pool participants, misappropriated pool participant funds and operated two commodity pools as a Ponzi scheme, using newly received participant funds to pay purported profits and withdrawals to other participants.
Defendants allegedly misrepresented to prospective pool participants that Driver’s trading generated monthly profits of around 20 percent and issued false account statements to give credibility to these misrepresentations. According to the complaint, despite accepting over $13.5 million, the defendants used only about $3.7 million for trading during the relevant time period, and Driver’s trading during that time resulted in approximately $3.5 million of trading losses, or 95 percent of the funds invested. Pool participant funds were also allegedly commingled with non-pool funds.
In addition, here’s the court paperwork the CFTC filed in US District Court in California and the order telling Mr. Driver to stop driving his financial scam.
The sad part of the story is that the Mainses got sucked in, seemingly innocently (other than a less-than-innocent lust for a quick profit), to the scheme. A lot of otherwise honest Jewish folks got sucked into Madoff’s scheme and, as, we might remember from the back-history of the Todd Bentley story, his Lakeland host church’s predecessor got rocked when the pastor’s son pulled off a major financial scam at the expense of quite a few parishioners.
It will be interesting to see if the Mainses, like quite a few of Madoff’s victims, were just innocent, if a bit greedy, victims or knew better and sucked people in anyway.