If anything shows the true colors of NXIVM, and its leader, Keith Raniere, it’s the following two documents:
The first is a settlement agreement between Douglas P. Rutnik, who is the father of US Senator Kirsten Gillibrand, and NXIVM Corporation.
Mr. Rutnik was retained in 2004 by NXIVM as a consultant, lobbyist and attorney. He worked earnestly for the company, but, when he found out about troubling legal, possibly criminal matters, he chose to discontinue his work.
NXIVM demanded that he return the entire amount they had paid him: $100,000. Thus, he would be paid zero for all the work he had done for them. When Mr Rutnik did not immediately agree to return the money, NXIVM retained the New York City law firm Proskauer Rose LLP to sue him.
Most likely, NXIVM spent more in legal fees than the amount they were seeking to collect from Mr. Rutnik. It was a matter of “ethics and justice”, NXIVM leader, Keith Raniere explained to NXIVM members.
Soon enough, NXIVM alleged Mr. Rutnik sexually harassed Nancy Salzman.[Nancy told me this story herself]. It was likely a total fabrication, but suddenly, a small army of NXIVM members were prepared to vouch for anything Nancy Salzman might care to say. Mr. Rutnik agreed to return the money and settled the matter on June 29, 2006.
The second document concerns NXIVM’s law firm.
In typical NXIVM fashion, they chose to take the money from Mr. Rutnik, but chose not to pay their attorneys, Proskauer Rose, for their services on this case, and other work the law firm performed.
Proskauer Rose, in turn, sued NXIVM, and won the case. A judgment was entered against NXIVM for $974,000.
Was it a matter of “justice and ethics” to sue Mr. Rutnik and not pay the lawyers who did all the work on the case?
A lawyer familiar with the case told me that the total legal fees for NXIVM’s lawsuit against Mr. Rutnik’s was about $1 million – to collect $100,000.
Proskauer Rose pursued serious collection efforts and NXIVM, caught flat footed, had to pay them – ethics or not.
Douglas P. Rutnik [l] thought he was dealing with an honest company when he began to work for NXIVM. He soon found out otherwise. His daughter, US Senator Kirsten Gillibrand [r], has recently spoken out against Bill Clinton’s sexual abuse allegations. NXIVM and its leader, Keith Raniere, have been alleged to have abused women in dangerous ways. Perhaps Senator Gillibrand might speak out against branding and blackmailing women and coercing them to have sex with Mr. Raniere. Perhaps she can even be convinced to hold Congressional hearings on NXIVM and Mr. Raniere.