A source said the word ‘collateral’ was introduced at V-Week 2012
What’s in a word?
A source said, it was V-Week-2012, when NXIVM leaders first introduced the word ‘collateral’ to their students. Perhaps only a few understood how the usage of the word would change by 2016 to mean ‘material that could be used to coerce a woman if not outright blackmail her into submission.’
Then it meant posting money or assets to ensure the performance of some promise.
In 2012, V-Week organizers offered up the word ‘collateral’. Several hundred people had just paid between $1,700 to more than $4,000 to be there.
Now organizers put the heavy sales pitch [for the good of the mission ] to get another $500. But it would be refundable.
The deal was this: Pledge $500 right now- on the spot – while you are still at V-Week to get two people to attend [plus yourself] to V-Week 2013.
If everybody did that, there would be triple the attendance at V-Week 2013.
They asked students to put up $500 ‘collateral’ against enrolling two new people into V-Week.
Most of them paid the $500. There was a lot of peer pressure and stern looks from Prefect.
Some lost their collateral. There wasn’t triple attendance.
Keith Raniere took the concept of collateral much further in the coming years.
Frank Parlato 
Janine Morrison 
J.J. O'Hara 
Richard Luthmann 
Marie White 
Paul Serran
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