Jury Finds Nxivm Leader Keith Raniere Guilty of All Counts
Keith Raniere, the founder and leader of Nxivm, was
convicted today by a federal jury in Brooklyn of all seven counts of a superseding
indictment charging him with racketeering and racketeering conspiracy; sex
trafficking, attempted sex trafficking and sex trafficking conspiracy; forced
labor conspiracy and wire fraud conspiracy.
The racketeering offense included predicate acts of extortion, identity
theft, and production and possession of child pornography. The verdict followed more than six weeks of
trial before United States District Judge Nicholas G. Garaufis. When sentenced, Raniere faces a mandatory
minimum of 15 years’ imprisonment, and up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern
District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge,
Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D.
Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal
Investigation (IRS-CI), announced the verdict.
“As found by the
jury, Keith Raniere masqueraded as a self-help guru to gain the trust of his
followers, and then exploited them for his own financial gain and sexual
gratification,” stated United States Attorney Donoghue. “Raniere and his co-conspirators will now
face the consequences for the serious crimes they committed and the profound
harm they have caused their victims.”
Mr. Donoghue extended his grateful appreciation to Homeland Security
Investigations, the New York State Police and the United States Attorney’s
Office for the Northern District of New York for their assistance during the
investigation and prosecution.
“Nxivm’s so called self-help programs did anything but help
the women they professed to empower,” stated FBI Assistant Director-in-Charge
Sweeney. “What’s been proven today is
that Keith Raniere preyed on the vulnerabilities of his many female victims,
sold them lies and other falsehoods, and committed horrifying acts of
coercion. This guilty verdict is a
welcome end to a case that highlighted the many avenues of criminal activity
pursued by a man whose intentions were deplorable beyond belief.”
“IRS Criminal Investigation plays a pivotal role in tracing
the illicit funds from such horrendous criminal behavior,” stated IRS-CI
Special Agent-in-Charge Larsen. “We
proudly stand with our law enforcement partners in uncovering such crimes, and
justice has been served.”
As proven at trial, in 2003, Raniere founded Nxivm, a
purported self-help organization headquartered in Albany, New York, with
centers operating elsewhere in the United States, Mexico and Canada. Raniere established Executive Success
Programs (“ESP”), a series of purported self-help workshops in which
participants paid thousands of dollars to attend classes based on Raniere’s
teachings. In 2015, Raniere added a
secret society within Nxivm called DOS or “The Vow,” with levels of women
“slaves” headed by “masters.” The goal
of the criminal enterprise was to promote Raniere, for example, by exalting his
teachings and ideology, and to recruit new members, including as sexual
partners for Raniere.
In the course of their racketeering enterprise, Raniere and
his co-conspirators committed multiple crimes, including sex trafficking,
forced labor, computer hacking, fraud and identity theft. Raniere maintained command and control over
his DOS members by collecting “collateral” from them, such as sexually explicit
photos and letters making accusations against their loved ones that would be
embarrassing if disclosed. For example,
“Nicole,” a victim witness, testified that she was coerced into providing labor
and services for Nxivm, which included taking photographs of naked women
members and engaging in sex acts with Raniere, under threat of release of her
collateral. DOS slaves were also branded
with Raniere’s initials in their pelvic area using a cauterizing pen. The members of the “inner circle” were
rewarded with financial opportunities and increased power and status within the
enterprise.
Raniere and his co-conspirators also worked to support
Raniere and protect Nxivm from perceived enemies. Raniere conspired with two of his closest
associates in Nxivm to have “Daniela,” a member of his inner circle at the
time, cross the Canadian border into the U.S. with a fake identification card
bearing the name of a dead woman.
Daniela testified that she assisted Raniere hack into the email accounts
of persons he believed were enemies of Nxivm.
Among Raniere’s crimes was sexual exploitation of a child
and possession of child pornography.
Specifically, Raniere began having sex with a victim member identified
as “Camila” when she was 15-years-old and he was 45. Raniere also took naked photographs of Camila
when she was a minor.
Each of Raniere’s co-defendants previously pleaded
guilty. On March 12, 2019, Nancy
Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering
conspiracy. On March 25, 2019, Lauren
Salzman, a first-line master over slaves in DOS, pleaded guilty to racketeering
and racketeering conspiracy. On April 8,
2019, Allison Mack, a first-line master, pleaded guilty to racketeering and
racketeering conspiracy. On April 19,
2019, Clare Bronfman, a high-ranking member of Nxivm’s Executive Board, pleaded
guilty to conspiracy to conceal and harbor illegal aliens for financial gain,
and fraudulent use of identification documents, and Kathy Russell, Nxivm’s
bookkeeper, pleaded guilty to visa fraud.
They are awaiting sentencing.
The government’s case is being handled by the Office’s
Organized Crime and Gangs Section.
Assistant United States Attorneys Moira Kim Penza, Tanya Hajjar, Mark J.
Lesko and Kevin M. Trowel are in charge of the prosecution. Assistant United States Attorney Karin
Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 58
Waterford, New York
The Defendants Who Previously Pleaded Guilty:
CLARE BRONFMAN
Age: 40
Clifton Park, New York
ALLISON MACK
Age: 36
Brooklyn, New York
KATHY RUSSELL
Age: 61
Clifton Park, New York
LAUREN SALZMAN
Age: 43
Clifton Park, New York
NANCY SALZMAN (also known as “Prefect”)
Age: 65
Clifton Park, New York
E.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
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