Although there has been a good deal of speculation about what type of punishment might be meted out to Keith Raniere and his co-defendants should they be found guilty or accept plea deals, most of it has focused on how long they might be incarcerated: 1 year, 3 years, 5 years, 20 years, life?
But in addition to being incarcerated for a period of time, it’s quite possible that these same individuals could end up being ordered to pay fines and/or paying restitution to their victims. They could even be ordered to reimburse the U.S. Attorney’s Office for the cost of their prosecution.
Fines
Per the U.S. Sentencing Commission’s Voluntary Guidelines, for example, anyone who is convicted of money laundering can be ordered to pay twice the value of the money laundered (up to $500,000).
Other crimes that can result in fines include identity theft, extortion, forced labor, obstruction of justice, sex trafficking, and wire fraud. If these sound familiar, it’s because they’re some of the crimes that have already been alleged against Raniere and his co-defendants (The expectation is that they’ll be a lot more alleged crimes – and several more named defendants – in the next superseding indictment).
Restitution
When it comes to restitution, the judge will either be mandated – or permitted – to order it. Whether it’s mandatory or permissive depends on the particular crime.
18 U.S.C. § 3663 allows the judge to order restitution for certain crimes. More specifically, here’s what that statute allows in part:
(a)(1) The court, when sentencing a defendant, … may order … the defendant make restitution to any victim…
(2) … a victim …. means any person directly harmed by the defendant’s criminal conduct…
(3) The court may also order restitution … agreed to by the parties in a plea agreement [and among other things]. … pay … necessary medical… psychiatric, and psychological care… [and]… reimburse the victim for income lost…
18 U.S.C. § 3663A, on the other hand, requires the judge to order restitution for the following types of crimes:
This section shall apply in all sentencing proceedings for convictions of, or plea agreements relating to charges for, any offense–
(A) that is–
(i) a crime of violence, as defined in section 16 [18 USCS § 16];
(ii) an offense against property under this title, or under section 416(a) of the Controlled Substances Act (21 U.S.C. 856(a)), including any offense committed by fraud or deceit; or
(iii) an offense described in section 1365 [18 USCS § 1365] (relating to tampering with consumer products); and
(B) in which an identifiable victim or victims has suffered a physical injury or pecuniary loss.
***
What does all this mean for the NXIVM defendants? Well, given that Raniere claims he has no assets or income, probably not very much for him. And given their limited assets and income, that’s probably also true for Nancy Salzman, Lauren Salzman, and, of course, the hapless Kathy Russell. And even though Allison Mack has some residual income from her former acting career, her future earning power is probably not going to generate a lot of income for her or her victims.
So, who does that leave? Clare Bronfman, who claims in her bail package to have a net worth of $200 million (Many believe that a forensic accounting would find another $200 million stashed away in offshore accounts).
Clarebear may take a plea deal – since that would allow her to negotiate her ultimate fines and restitution.
Funny, before she met her Vanguard, she was a competitive horse jumper. Her friends were the horses and the people in that sport. As far as is known, they never tried to talk her into committing crimes.
If she’s convicted at trial – and the judge takes into account all of her victims – the only horse she’ll be able to afford to ride in the future might be that one on the carousel down at the arcade.
Frank Parlato 
Janine Morrison 
J.J. O'Hara 
Richard Luthmann 
Marie White 
Paul Serran
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Restitution to victims is a true justice that must happen.
One thing more. Rainere has spoken about sex with children, between father’s and daughters being acceptable, he’s a lying price of ####. There is 0 truth in that . Physical pain or not it destroys children and I’m grateful he did not have any female children, he’d already made it clear where he stood. Those of you who new his predilection towards children, how could you let him touch you?
Shadow is correct. One can’t imagine the ongoing fear these women are still going through knowing officials and attorneys and even the defendants still have access to their collateral. Dehumanizing as in feeling they had no choice but to let that dirty, smelly, creepy little man do things to them he knew they wouldn’t do willingly or he wouldn’t have tricked them. How he got a harem in his younger days is hard to comprehend but the willing were disappearing.
Agnifilo is being paid to defend Rainere, my guess is he’s just as disgusted in his heart as the rest of us. As I hope all of the attorneys involved who are human must feel something negative about these inhuman defendants.
I hope the judge takes into account when it comes to restitution the way these defendants just couldn’t let anyone go. They chose to chase them down with false litigation to the point of terror, women are in hiding for God’s sake! Forced into bankruptcy, millionaires lying on the stand for what? The joy of hurting one who simply wanted to move on away from NXIVM. Away from Keith Rainere. The motivations of the women who stayed and participated is beyond my comprehension. Are you wondering now what and who you were fighting for?
I hope those of you that have escaped are able to move on and have meaningful lives, forgiveness will be for you not the defendants, hey will be punished. They are being punished right now. Anyone who has spent even one night in a cell you know Rainere is going crazy with his lack of control. 6 months and counting let’s be grateful for every day he spends behind bars trying to figure a way out!!!
RICO is treble (3X) damages.
While the FBI does their search of the computers cell phone etc taken from the Library and 3 Oregon trail they will undoubtedly find where the Vanguard stashed his wealth offshore. He was doing this as far back as 2000. I think the $65 million for the commodities might turn up.
It would be really interesting to see if Frank’s hunch was right, and there were never any trades. I am guessing there were some, but less lost than reported to the sisters.
I have always wondered if Sara and Clare would finally wake up if they saw physical evidence of just how badly they have been robbed.
I am not sure either of them would believe it was real even if someone could show them in black and white.
Dumb and dumber
And such exorbitant fines are not dischargeable in bankruptcy, while the Government continues to try to collect from all who have been fined, with no apparent time limit. Viva Executive Success!
And for the women who were demeaned and dehumanized by being branded and turned into sex slaves, there is really no restitution.
Very true. Shadow. But, the justice it represents plus offering for some the ability to leave the impoverished state – financially albeit – that Vanguard left too many in is NXIVM money put to good use at last. Psychiatric bills and medical bills alone are an atrocious sum when the means to pay for this necessary care are difficult to obtain (state funds do not pay for the specialized care needed). In fact, restitution is necessary for many other reasons and I’m listing just two that are not options, but necessities. Physical and mental health must be regained before any other rehabilitation takes place.
Ironically, the artist picture of Clare Bronfman at the top of this article looks like the Dalai Lama.
Ha ha ha. It does!!
Restitution is probably not the biggest financial concern for the defendants.
Given the nature of the crimes – particularly the money laundering – it’s likely any NXIVM defendants who received a judgement would pay restitution. Fines and restitution are usually a multiplier of the damages, they are there to cancel out any benefit the defendant may have enjoyed as a result of the crime. Combined, they can add up to more than double the amount originally alleged, especially if a judge believes the defendants are being dishonest. You often hear about appeals where the defendant is not contesting guilt but instead the fines.
Unless the individual judgements are for millions, the bigger problem for the defendants would be fees related to incarceration. Especially if they are looking at a long stretch.
While Federal Prison is not a pay-to-stay system per se, inmates are responsible for a copay on medical costs that covers doctor’s visits, medical supplies and other items. In addition, should any of them be housed at a private prison, those institutions have wide latitude to impose additional fees. These fees can include a per-night fee and service fees related to providing for the inmate’s welfare.
The worst story I heard was about an inmate (who was young and in decent health) accumulating $90k in debt over a 32 month stay. He spent a most of his time in isolation units, which made every service – meal delivery, delivering him to exercise areas, etc – subject to a fee. The debt he accumulated was not dischargeable and could have been avoided. The problem was he was never honest about his assets going into prison, so the prison did not offer him a copay and was able to charge him 100% of the costs of services.
While I realize penalties and restitution for the money laundering could be high, I suspect the cost of incarceration could eclipse that amount. The defendants are aging adults who, should they receive a jail sentence, will need medical services over time. We’ve already heard reports about heart problems and those could require major procedures. The cost to treat conditions like those in prison compared to private treatment is much higher, more than it would to visit an emergency room.
(Contrary to popular opinion, you don’t get to bring in your own doctor while you are in prison. You get to bring your own doctor in as a consultant for the services of the provider selected by the prison. That plus the inconvenience / stigma of treating felons makes it very rare for someone to ever see their personal doctor.)
But what will make this a lot more expensive is the defendants themselves. Their financial needs assessment will be made by a bureaucrat based on information they have received from the BOP and details about their judgement. If that person believes a convict is trying to conceal their true finances, that convict will not be offered a co-pay for services.
Beyond that, it’s a huge red flag when an inmate doesn’t come clean, every prison has rules and that’s a big one to break. Staff will know this is the case, that inmate will be treated with nothing but distrust the entire time they are there.
I am far from a bleeding heart liberal, but It seems wrong to impose fees on prisoners beyond commissary items. These individuals have had all their freedoms taken away. Another reason not to like privately-run prisons.
The US has such a significant number of prisoners…
What about charging fees for repeat offenders or when there are multiple charges ?
I still don’t like it. You are imposing fees on people who are not free to work for wages. We could reduce the prison population significantly by decriminalizing certain minor offenses, such as (in my view) possessing marijuana. There are simply too many non-violent offenders behind bars and housing inmates has become big business. Of course, Raniere and Company deserve to go.
I see what you are saying.
Admittedly, I do not know a lot about the prison system there. I thought they had people working for slave wages making licence plates, and who knows what else.
I presume most of the size of the prison system has to do with it being profit driven more so than justice.
I wonder how many inmates are repeat offenders, and what could be done to discourage it.
Sorry OCD, but you’re simply wrong, sir.
They’re not free to work for normal wages BECAUSE they broke the fucking law and got themselves sent to prison. Stop weeping for criminals.
And yes, you are a bleeding heart liberal if you believe that nonsense. Stop claiming otherwise.
Also, nobody’s going to PRISON for minor shit like possessing a bit of weed. You’re clearly trying to make a phony argument to support your bleeding heart wish to empty the prisons.
It’s the coke heads and crack junkies who are doing longer prison stretches and those losers deserve it, because if you free them they’ll be the first people to do a home invasion on your bleeding heart family. Let the junkies stay away from society.
What about treatment? If treatment really worked and junkies didn’t endlessly “relapse” — then we wouldn’t have crack heads and coke junkies in prisons.
Let’s see how you feel if one of those junkies harmed or raped a family member.
Keep the animals in cages. Who cares if it’s big business. This isn’t a charity based industry. If the business world can help to keep animals in cages, so be it.
Before you compare Sweden’s more modest (bleeding heart) prison system to ours, you need to realize that Sweden doesn’t have the same type of massive criminal problem that the USA does.
Nor does Sweden have the massive ‘minority’ crime issues which plague the USA with greater income disparities. Yes, minorities do make up a statistically large portion of USA prisons. That’s not racism either, that’s just a statistical fact. Minorities commit a statistically larger portion of crime than non minorities. Sweden doesn’t have to deal with such issues, as their minority populations are much smaller.
Disagree? Prove it by walking thru Oakland or Chicago or South Central LA at midnight with your family and see how ‘safe’ you feel.
I hate hypocrites who claim that minority populations are no more prone to crime than anybody else, but then they’re afraid to walk thru a minority neighborhood at night to prove this point.
To: OCD is wrong.
Hey – I think violent offenders need to be locked up period. And yes, there are people in prison for possessing weed – despite the huge difference between a pot-smoker and a crack user.
I am not objecting to incarceration – just “charging prisoners fees” for basic needs and “housing.” That is pure greed. If restitution is in order, that should occur through the courts. I assume assets can be frozen. Those imprisoned are paying their debt to society by losing their freedom for a period of time or even the rest of their lives.
It would be ideal if prisoners were able to work, stamping out license plates, etc. Some of the old prisons were self sufficient, growing their own food, etc.. But now, prisons are a highly profitable private enterprise and cash cow. THAT is what I object to. That should concern all of us. You might think you will never wind up in prison, but then again, look at John Tighe.
‘…For small amounts of drug possession there’s more black people in jail in America, then there is for rape and armed robbery and murder all put together…’
Not a bad idea.
Why should they not have to pay for services if they have money?
After reading all the responses it is ridiculous to say prisons are profitable, they cost working Americans millions to keep these CRIMINALS behind bars. Most of us are working to survive, yes WORKING. A choice that most locked up would simply rather not do. There are always exceptions and I would fight for any innocent person being convicted. But for those guilty ones that put themselves there by bad choices I have no sympathy and every dollar each state can recoup for their food, housing, medicines I say take it. No one pays for my medicine.