According to Barbara Bouchey, the reason Peter Fallon left NXIVM is interesting.
She was asked in one of her depositions:
“Did Peter Fallon tell you was the reason he left NXIVM?”
She answered yes and went on to tell the story:[Fallon] was at a Halloween party and saw Keith [Raniere] come dressed with a bathrobe and a gimmick of a penis that was about that long and was going around Nancy’s house with that, and he said he had recognition as he looked around the room that he realized that ‘oh, my God, he is having sex probably with most of the women in this room,’ and recognized that he was one of only two men in the room, so there were numerous things about Keith’s conduct with women, and as a leader, and also personal conversations with Keith about women and relationships.
Secondly, he had a daughter who was in her late teens who got very disturbed because Keith was making — was flirting and making intimate gestures towards her and conversations about a friend who had committed suicide that Peter thought was inappropriate.
Also, Peter said he saw many things that were inconsistent in running of the company, meaning the way that people would conduct themselves and the material were different, and so there was lots of behavior and conduct that in his opinion did not uphold the very material that they were teaching such as payoffs to different people, promotion, ranking.
There was favoritism and certain inconsistencies, certain ways that people’ were treated that he thought were punishing, and eventually, you know, he said, the last straw, though, was Keith’s conduct with the women in his conversations….[H]e believed that, in fact, in his opinion it did take on the personality and characteristics of a cult, and that he felt as though that would continue, and that could be damaging to his – he had a pharmacy, and that could be damaging to his professional reputation and business and ultimately his income.
In addition, his wife didn’t like things that she heard or saw, and she didn’t want to have anything to do with it, and they had just recently got married.