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.