Reader: DOS is a pyramid scheme bound to implode

One of our readers – under the moniker “Hoping it all ends soon” writes authoritatively:

Slaves built the pyramids.

Keith Raniere used to play the long con, and play it well. After being burned in the Consumer Buy-Line pyramid scheme, where the ask was only a few hundred dollars a year, and he was supposed to deliver actual discount buying opportunities (to be provided by another business, which couldn’t keep up with his pyramid growth), he concocted Executive Success Program,.

ESP didn’t have to deliver anything material, just training. The ask was many thousand dollars, which was brilliant. If you get $100 from a mark and don’t deliver the goods, the mark feels ripped off. If you get $5000 from a mark for “training”, the mark will be too embarrassed to admit he was conned. Add the standard “blame the students for not properly following the training if they don’t make progress” and no one will complain. Make them sign a non-disclosure agreement. And the “training” is mostly about how to recruit more students, which you are obliged to do because you promise at each training session to keep your word to save the world by enrolling more students.

The fact that ESP delivered to Raniere naive young women who had been indoctrinated to view him as the genius demigod who is humanity’s only hope was almost certainly also part of the plan.

The original 21 day Intensive was pretty clearly designed so marks who completed it were fully trained as assistant trainers. And marks were expected to recruit at least 3 more marks for the next intensive. The growth rate possibilities were exponential.

The problem with such high exponential growth rates is that you rapidly saturate the ecosystem. Consumer Buy-Line over-grew what it could deliver. So marks complained to consumer protection groups and government, and CBL Inc got shut down.

I think what saved ESP from going the same path was the serendipity of recruiting the Bronfman girl heirs. That brought in so much money that exponential growth was irrelevant. They could lower the recruitment pressure on new marks, and tell them to be selective. Only recruit people who would be receptive: young, naive, at a psychological low point. The training was reduced to 16 days, then 5 day blocks, then once a week for a year (although it was always OK to repeat classes, for years, as long as you paid…)

Raniere could never resist inventing feeder-streams into his universe. Followers of the history will remember A Cappella Innovations, which was intended to turn college a capella singing groups into recruiting tools. (There is an amazing blog thread about this that’s not hard to find. Raniere himself was posting!). More recently, there is Exo/Eso the fitness-based cult reminescent of Falung Gong and run by our Dr. Roberts. Also The Source acting school run by Allison Mack and/or Mark Vicente (although he may have had an epiphany and exited the Raniere universe). Also The Knife of Aristotle, the entry into journalism/criticism. And the men’s group Society of Protectors, which claims to be a fraternal society somewhere between the Freemasons and college fraternities.

Then there is the women’s equivalent of JNESS. It sells itself as a sorority-like organization for women of all ages. You pay to go to a 3-day weekend of sisterhood and social pressure, then for a yearly membership of sisterhood and social pressure to recruit for JNE$$, and also take the next step of $igning up for E$P.

But since Allison Mack has taken over after Pam Caftriz’s death, the Dominus-Servus “higher teachings” of JNE$$ seem to have taken over.


If it’s really true that each DS inducta (from lower-level JNE$$) is expected to recruit 6 more DS inductae (as her slaves) and quickly (or she will be punished), the results are predictable. The first DS inducta will recruit 6 “friends” from the JNE$$ chapter as her slaves. If there are 1+6+36 members, those 6 will recruit the rest (or be punished).

Now the JNE$$ chapter has been totally taken over by DS. They all have to recruit new members to JNE$$ and then quickly recruit those into DS.

Under that much recruitment pressure, they can’t be selective any more. Some of the recruitments will fail. The failed recruitments will talk.

And I think we are seeing the results of that on Frank Report.

Raniere is smart. And he learned from his first burning with Consumer Buy-Line. And he lucked into the Bronfman money. So he kept ESP below the radar, and satisfied his sociopathy and libido for nearly 20 years.

Allison Mack does not seem to be as smart.

I would have expected Raniere to have explained to her that a 6 to 1 pyramid with rapid growth or corporal punishment would explode.

Maybe he is just too disconnected from the world at this point to care.

About the author

Frank Parlato


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  • Sorry, but I don’t believe it. Like I implied in my last comment, if people REALLY cared – family members and friends of victims, other concerned parties, law enforcement, the legal system, etc. – he wouldn’t have got away with the things he did for so long.

  • This is an excellent post, thank you to the author. The big question is – how does Raniere benefit by this implosion of DOS? I think he would know it was inevitable for the reasons stated in the above post and wanted it. Why? Maybe he simply wants to destroy Allison Mack’s acting career? She just did a play in San Diego instead of dutifully staying by Keith’s side. Keith is happy to crush hundreds of people’s lives to get control of one woman. He has done it before. Maybe this is a strategy to control Clare Bronfman? Clare has been known to rebel periodically and state she is no longer giving any more money. Maybe it’s a combo. India Oxenberg is very beautiful and wealthy. This could partly be about her too. Destroy Allison’s career, reign in Clare, seduce India, what else? Maybe Keith wants to move to Fiji with the aforementioned women and needs a crisis to justify it.

    Whatever the reason the present implosion is deliberate and methodical. No doubt. It’s obvious the moment DOS recruited all the long time Jness members, DOS reached a saturation point and the pyramid scheme would bottom out. No one left to recruit that was trustworthy into DOS. The last women into DOS would be scrambling. Judging from this blog Keith was putting A LOT of pressure on the women to recruit, wanting to facilitate the implosion as fast as possible.

    Why? What do you think Clare Bronfman? Why is Keith blowing this all up in your face?

    • Who cares really what his “master plan” is? The guy is a charlatan who psychologically manipulates people using thought reform, and if the authorities did their job that U.S. tax payer money was paying for – over and above illegally earned bootleg Canadian billionaire money (research into how the Bronfmans effectively built their fortune) – he should’ve been put out to pasture a long time ago.

      • If you were in this cult you care. You see your old friends become twisted, dark versions of their former selves. It’s heartbreaking. You think about the new recruits, and know the slow methodical destruction of their lives that awaits them. You think about the children to be raised in this dark philosophy. What will become of them?

        We who came before feel for people and our hearts hurt.

About the Author

Frank Parlato is an investigative journalist.

His work has been cited in hundreds of news outlets, like The New York Times, The Daily Mail, VICE News, CBS News, Fox News, New York Post, New York Daily News, Oxygen, Rolling Stone, People Magazine, The Sun, The Times of London, CBS Inside Edition, among many others in all five continents.

His work to expose and take down NXIVM is featured in books like “Captive” by Catherine Oxenberg, “Scarred” by Sarah Edmonson, “The Program” by Toni Natalie, and “NXIVM. La Secta Que Sedujo al Poder en México” by Juan Alberto Vasquez.

Parlato has been prominently featured on HBO’s docuseries “The Vow” and was the lead investigator and coordinating producer for Investigation Discovery’s “The Lost Women of NXIVM.” He also appeared in "Branded and Brainwashed: Inside NXIVM, and was credited in the Starz docuseries "Seduced" for saving 'slave' women from being branded and escaping the sex-slave cult known as DOS.

Additionally, Parlato’s coverage of the group OneTaste, starting in 2018, helped spark an FBI investigation, which led to indictments of two of its leaders in 2023.

Parlato appeared on the Nancy Grace Show, Beyond the Headlines with Gretchen Carlson, Dr. Oz, American Greed, Dateline NBC, and NBC Nightly News with Lester Holt, where Parlato conducted the first-ever interview with Keith Raniere after his arrest. This was ironic, as many credit Parlato as one of the primary architects of his arrest and the cratering of the cult he founded.

Parlato is a consulting producer and appears in TNT's The Heiress and the Sex Cult, which premieres on May 22, 2022.

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Phone / Text: (305) 783-7083