NXIVM stiffed attorneys who sued Gillibrand’s father; Proskauer Rose got judgment against NXIVM for $974,000

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.

Douglas Rutnik settlement $100,000; June 29, 2006

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?

Proskauer Rose LLP judgment against NXIVM, $974,000; September 26, 2007

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.






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Frank Parlato

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[…] followed up with a second story that provided more details of Doug Rutnik’s work for the NXIVM cult – and a copy of the […]


[…] followed up with a second story that provided more details of Doug Rutnik’s work for the NXIVM cult – and a copy of the […]

6 years ago

The interesting question would be whether they were able to collect the money or not. I mean a judgement is one thing but getting the money might be something else. These companies do not own a lot of valuable holdings. So if there is no money to pay the lawyer they simply close down and reopen under a different name.

Mind Control Army
Mind Control Army
6 years ago

Only goes to show you the true ethics and moral fiber of this company (cult). The people listed on this document were all willing to step forward and say they were witness to Rutnik sexual harassment of Salzman.

Salzman being the president of the company most likely never was in the same place with Rutnik with any of these people. Rutnik had a different purpose within the business structure than the “members” that signed the documents.

It only goes to show to what lenghts the faithful will go for their leaders when mind control is in place.

They say Karma can be a real bitch when it catches up to one-selves. Guess it’s a wait and see how this will play out over the next few years for those that are still living.

It appears Bouchey has already started dealing with her karma with the legal battles she has had to deal with from NXIVM.

Darth VanDouche
Darth VanDouche
6 years ago

This is an example of VabDouche’s ego getting in the way of common sense. But, hey, it’s not his money, so who fucking cares, right?

The guy’s a fucking loser.

Vanguards School of more Joy
Vanguards School of more Joy
6 years ago

What’s the saying…. You gotta spend other’s money to lose other’s money.
It’s what makes him happy. When he’s happy – Clare Bears happy

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.” Parlato was also 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 premiered on May 22, 2022. Most recently, he consulted and appeared on Tubi's "Branded and Brainwashed: Inside NXIVM," which aired January, 2023.

IMDb — Frank Parlato

Contact Frank with tips or for help.
Phone / Text: (305) 783-7083
Email: frankreport76@gmail.com


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