Clare and Sara Bronfman.

Why Clare Bronfman is suing me – a contract or not a contract? That is the question

As reported in yesterday’s post, Clare Bronfman is suing me – and evidently, one of the reasons she went to Clifton Park was to further orchestrate the lawsuit.

She asked permission from Judge Nicholas G. Garaufis to get a two-day furlough away from home detention in her Manhattan apartment on the premise that she was going to Clifton Park with her lawyer to work on the defense for her criminal case. She may have misled the court.

Her present lawsuit against me is not for libel – as some have surmised – but arises out of events that took place in early 2008 – when I worked as a consultant for Clare and her sister, Sara Bronfman-Igtet – and uncovered problems with an investment they made in Los Angeles.

When I arrived in Los Angeles in January 2008, the Bronfmans had invested $26 million into a real estate project- a plan to build some 30 hillside mansions. But they had nothing titled in their name.

Nancy Salzman owned half of the LLC that owned the real estate — and the other half was owned by the developer that Raniere had selected to undertake the project. There wasn’t neither a mortgage on the property – nor a contract concerning the deal – to evidence the Bronfman investment

I secured for the Bronfman’s a two-thirds interest in the LLC — which gave them majority control. Within a month, I also got possession of the properties and procured financing to finish the project – so that the Bronfmans would not have to invest any additional money to complete the project.

At the time, because of some poor investment decisions – and because of the tens of millions spent in litigation against Raniere’s enemies –  the two sisters had depleted their initial $120 million trust fund and would not get access to their second trust until their father died. They had also already borrowed some $40 million against the second trust, which was to be, I believe, around $500 million each for the sisters, upon their father’s demise.

At the time, Clare and Sara were grateful to me for recovering $26 million in assets. Even Raniere pretended I had done them a good turn.

 

[Photo courtesy and copyright TheFallofNXIVM.com.] Though I recovered the Bronfman sisters’ assets, I incurred the wrath of Vanguard.
The present lawsuit probably boils down to a contract – two pages in length – signed by me – but not by Clare and/or Sara – that spelled out terms of my work on the Los Angeles project.

Raniere negotiated the contract in January 2008.  The contract provided I would receive 1/3 of the net profits of the Los Angeles project and receive a one million dollar advance or draw against profits – which were expected to be more than $25 million – in return for managing and finishing the project.

Within an hour of my signing the contract, Raniere ordered Becky Freeman to wire $1 million of the Bronfmans’ money to me. In a legal sense, they may have entered or ratified the contract when they wired the money following my signature on the contract.

After receiving the $1 million, I finished the task of securing the real estate assets for Clare and her sister. I had the project in full gear. The Bronfmans never signed the contract.

One day, I questioned Clare about what happened to the $65 million that she and her sister lost in the commodities market between 2005-2007.  Raniere had managed their trades.

In explaining the loss, Raniere had told Clare that her father, multi-billionaire Edgar Bronfman Sr., then the President of the World Jewish Congress, had manipulated the commodities market to foil their investments so that Raniere would be embarrassed and, hopefully, Clare and Sara would be angry and leave Raniere.

Clare said she believed Keith’s mathematically perfect formula for commodities trades would have made them richer than her father had he not thwarted Keith by controlling the market.  She said, if she could solve the problem of her father [who was in league, Keith told her, with the Illuminati], then Keith  – because of his genius – could go back to the commodities market and make them all billionaires.

Clare added that her father might have also interfered in the Los Angeles real estate deal. Real estate prices had taken a plunge in early 2008. Clare said, “It is possible that my father also controlled the Los Angeles real estate market to make prices go down – to prevent me from making a profit – since Keith is managing the project.”

I steered the conversation back to the commodities losses. I told Clare I wanted to see all the trades she and Sara made, and ascertain what happened. I said I did not suspect Keith of wrongdoing – but what if the commodities broker – the same man Keith had selected to develop the Angeles real estate deal – did not make the commodities trades but lied and told Keith that he did?

I asked for receipts. Proof of any kind. She said she had none. I asked if she recalled any trades that were made – if the trades were in orange juice futures, or wheat or corn?  Clare said she did not know. She said she had no proof of where the money was invested.

I said I was suspicious and planned to investigate. I said I did not think Keith was responsible. Clare said she would talk to Keith and get from him the documents I asked for.

A few days later, I was informed by a NXIVM official that Clare no longer required my services. I was told not to contact her or her sister, or Keith again.  The NXIVM official also demanded I return the $1 million.

I replied that I thought any lawyer or collection agency who recovered $26 million would be entitled to a fee – probably more than a million dollars – and explained that I had done more than just recover some assets. I had secured the properties, got possession, arranged construction and financing – and primed the project for a speedy development. That work was also worth a substantial fee.

In addition, I was the architect of the civil case against the former developer. I also hired the lawyer – Bob Crockett – and gathered evidence and secured witnesses. The NXIVM official said Keith did not agree that I was entitled to any money. I must return it all.  I declined and put the million dollars in escrow and never spent it – and prepared to litigate.

Raniere’s first concern wasn’t me. He was determined to go after the former developer.  That took three years. During that time – from 2008-2011 –  I thought little about NXIVM. I went on to other ventures.

The trial against the former developer began in March 2011. During the trial – although I did not appear – my name came up repeatedly. The former developer’s defense was that I had wrested the project away from him and gave it to the Bronfmans – which meant in reality to Raniere’s control.

When showed by former developer’s attorney the contract that included the $1 million payment to me, Clare denied ever having entered into it. She admitted she paid a million to me and added, compared to the $26 million recovered by me, it was well worth it.

Here is a snippet of her testimony:

Q: DID MR. PARLATO DO ANY GOOD FOR YOU BEFORE YOU FIRED HIM?
A: ABSOLUTELY.
Q: WHAT DID HE DO?
A: HE HELPED DETERMINE THAT THERE WAS A SERIOUS PROBLEM WITH A HUGE INVESTMENT THAT MY SISTER AND I HAD MADE,  AND HE WAS WILLING TO BE THE PERSON OUT HERE TRYING TO UNCOVER EVERYTHING THAT WAS HAPPENING. SO I’M VERY GRATEFUL FOR THAT….. [THE $1 MILLION] IT SOUNDED LIKE A LOT OF MONEY. IT IS. COMPARED TO [$]26.43 [MILLION], IT WAS WORTH IT TO US.

Pressed further during cross-examination, in front of 12 jurors, Clare repeatedly denied entering into the contract.  She told the jury she loaned me $1 million without any written agreement.

She won the lawsuit against the former developer. The jury awarded her and her sister a $10.3 million verdict.

The Bronfmans did not collect any money, however. The litigation – and the way it was managed by Raniere over the three years it took to complete it – drove the former developer to file for bankruptcy.  And so the judgment became worthless.

As for the Los Angeles properties, the ones I queued up for development – nothing was done.  The foundations that had been poured were left to ruin as the exposed re-bar rusted over time.

Now that the trial was settled and the former developer was in bankruptcy court, it was time to go after me.

Clare Bronfman filed a criminal complaint with the FBI claiming I defrauded her out of one million dollars. A grand jury was convened in the Western District of NY.  Clare went before the grand jury.  She was shown the same contract she had been shown in the Los Angeles trial  – the contract she swore under oath that she never signed and never entered into. This time, however,  she said it was the valid contract.

In front of 23 grand jurors, she now said under oath that she did enter into that contract.

The Assistant US Attorney used her testimony to lead the grand jury to indict me. [The charges were later dismissed from the indictment after the government realized Clare was to be indicted herself.]

The following year, knowing that testimony in the grand jury is kept secret – which meant that her lies would not be exposed – Clare felt free to sue me in New York State Supreme Court. In her verified complaint, she reverted back to her earlier position – that there was no written contract. She said she lent me the money based on an oral agreement and that I never paid her back.

To be fair to Clare, the motive for her swearing in the civil case that there was no contract was that I might not owe her anything if there was a contract since she breached the contract. In fact, if there was a contract, she might owe me millions since I was entitled to 1/3 of the profits. She fired me, hence depriving me of the opportunity to complete the project and earn multiple millions.

In the criminal case, it was different. She had to swear there was a contract because the only thread they had to tie them within the statute of limitations was the written contract – because the contract had conditions that went three years past the original date of the contract.

In the criminal case, it was peculiar. Assistant US Attorney Anthony M. Bruce was made aware of Clare’s contradictory testimony in the civil and criminal cases but chose to ignore it.  He was a friend and college colleague of Bronfman’s attorney, Bill Savino, and it is possible that in trying to be a good friend, he suborned or ignored Clare’s perjury.

Which brings us to the present – to Clare’s recent trip to Clifton Park and beyond. Clare is suing me  – the same lawsuit – over the same million dollars.  We will see what she says under oath when she is deposed and asked about the contract. With Raniere in jail, it may be harder for her to figure out which lie she should tell and when.

For more details

For those who want to see the contract that is the focus of the lawsuit – here it is:

 

Here are a few snippets of Clare’s testimony in the Plyam trial:

 

 

 

 

 

 

 





About the author

Frank Parlato

Frank Parlato is the founder of the FrankReport, publisher and editor-in-chief of Artvoice, The Niagara Falls Reporter, Front Page and the South Buffalo News.

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  • Anonymous, that’s interesting, but does it have anything to do with this impending lawsuit related to this contract?

    Even if the parties involved fail to sign a contract, it may still be binding. Will the judge believe that Mr. Parlato volunteered to work for the Bronfman sisters free of charge? It seems he had a reasonable expectation that he would receive payment for the services provided.

  • My earlier comment apparently did not post…

    I’m confused about the reason this contract was not signed by the Bronfmans. The contract was drawn up at a lawyers office, and it should have been signed by all three parties and witnessed at that time. Who is the witness? It’s kind of odd…

    So it seems this dispute is still the same ongoing quibbling over this 1 million dollar fee. It’s funny that Clare is thinking so much about this now, at this point in time, when she has so many other important things to worry about.

    Is she trying to use this as part of her defense? Seems as though that might be why she’s doing this now.

    Even with this wonky, unsigned contract, I still can’t understand how she expects to win. Clearly Frank did do this work for the Bronfmans, and clearly he was not offering to do it for free.

  • The only time you seem to find fault with the Bronfmans’ and Raniere’s treachery and deceit is when it’s convenient for you and supports the fictitious narrative you’ve constructed where you play the hero. You take no responsibility for your part in defrauding the Plyams, and assisting the Bronfmans and NXIVM in bringing criminal charges against O’Hara. Btw thanks for posting all that crap on Artvoice. It proves the deception you perpetrated against the Plyams. Invoices for 75K a month for doing what exactly? You have no expertise that is worth 75k a month. You are culpable in the same evil as the Bronfmans and Raniere. I have a feeling that 2019 will see the prison population grow by at least 3 – you, Clare and Keith. Bye bye.

  • You should be very careful with your ill advised narrative. Your comments could be characterized as slander and as such actionable. As usual you paint yourself the hero but in reality you were just a hired thug who didn’t really accomplish anything. You showed up in LA with two other thugs Lou Avino and Ken Thomas aka Wil Diamond, Jim Del Negro and your personal attorney Grenga. You threatened the Plyams and intimidated them into signing over the company. You were fired by Clare for allegedly stealing company assets. You and the company you keep are morally bankrupt. You are in no position to judge others. You are the real criminal and your days of freedom are numbered. In my opinion you are getting what you so justly deserve.

    • “You should be very careful with your ill advised narrative. Your comments could be characterized as slander and as such actionable”

      Slandering who?

      • That’s probably someone from the Plyam camp. Yuri Plyam was Keith’s commodities broker and LA real estate development partner. He was hired by Barbara Bouchey.

        Of course, all of it was funded by the Bronfman sisters and Keith was calling the shots. The properties, however, were not in the sister’s name and that looked suspicious (on top of the $65 million commodities losses).

        They were being “developed” (not really well) under Nancy Salzman and the Plyam’s name.

        Plyam’s insist they never meant to keep the properties in their name — apart from a couple that were to be their homes by agreement with the Bronfman’s — it was just a working arrangement as ordered by Keith and made it easier for the Plyam’s to secure development loans, manage the properties in LA, etc.

        The Plyam’s did end up taking the fall hard in the whole ordeal when Frank went after them on behalf of Keith and the Bronfman’s. It was Frank’s turn next. That’s Keith’s “taking the fall” pattern.

        I’ve always wondered why if half the properties were in Nancy’s name at the time they were deemed “stolen,” she (or Keith) wasn’t also just as “guilty” as the Plyam’s?

        Or whether any of the Bronfman’s will ever come to terms with the fact that they were and continue to be conned by, principally, Keith & Nancy?

        You can be stupid, you can be evil, but you can’t be both.

    • Definitely an angry Nxivm, not happy that you and your cronies lost your creepy little lifestyle. In all honesty if Frank were a criminal which I doubt he’s still 10 times the person any if you Nxivm creeps are.

  • I don’t understand how the contract was drawn up and witnesses as signed by all 3 parties , but was only signed by one party. Who is the witness? The witness always has to sign as well….very strange.

    So the thing Clare is still quibbling over is the 1 million dollar fee they paid you? So, with everything else going on in her life now, THIS is what she thinks is important at the moment? Why is she suddenly so worried about this fee now?

    Clearly Frank did do work for the Bronfmans on this real estate project, and clearly Frank did not intend to do the work for free, so it seems like she will have a hard time proving her case, even with this wonky, unsigned contract.

    I wonder what is happening to this property now. Is still owned by the Bronfman’s?

  • Considering the charges already filed against her, adding perjury and obstruction of justice while answering to a judge that doesn’t appreciate Nxivm games, I don’t see this going well for her. Is Dennis Burke the attorney of record for this charge?
    I may be wrong, but did she just shoot herself in the foot here?
    All these expensive attorneys Clare? You may want to ask them for advice on occasion.

  • I believe that the original lawsuit was filed back in 2012 (Clare and Sara were/are the two named plaintiffs – and Frank and one of his companies were/are the named defendants). The latest motions are just the most recent activity in a case that has been dormant for several years.

  • I don’t understand how she can file a lawsuit that includes her sister Sara Bronfman? Does Sara have to give Clare. power of attorney to do this? Anyone have thoughts about how Clare Bronfman can add her sister Sara Bronfman to a lawsuit against Frank?

    On another note, wouldn’t there be emails between Clare and or Sara to Becky Freeman requesting th release of funds for the trading account, the real estate deals and payment to you Frank?

    If Becky Freeman and or Clare and Sara Bronfman attempted to delete any emails between them, it could be her boss has a copy of them.

    Wasn’t it Clare who sued the Canadian firm she hired to illegally get bank records and other dirt on all the Judges in their legislations? If so, that is a stupid move.

    This gang of lying criminals are not the smartest group of mobsters. Look at how many legal cases they have lost vs won? Her Master VanTurd did leave college with only a 2.2 GPA and I’ve heard Clare never finished high school. Is that true?

    • They (The criminals) remind me of the young man who stole a car. And when he abandoned it he left a filled out job application on the back seat.

  • Sara would have to appear to wouldn’t she as her name is included in the letter of intent? The whole thing including statues seems like a waste of court time. Does judge G have the power to deny her the right to do this?

  • It seems like such a stupid thing to do and her timing couldn’t be worse. Almost like she’s so angry with you she’s willing to take a serious risk . And for a case that’s been dropped already. Is there any way this could benefit her? Will she get extra time to prepare for this case too?

  • ClareBear did the same thing in NXIVM’s criminal and civil lawsuit with the fake computer trespassing charges. She said one thing in the civil case and the opposite in the criminal case. She is not the sharpest tool in the shed.

    ClareBear’s father said after his youngest children, CB and Sara won the real estate case, He said you spent 12 million to win 10 million that you will never see.

    If I heard right CB and her sister Sara lost the real estate case in appeals and spent even more money on legal fees.

    Frank, NXIVM never gave any of their independent contractors any contracts. The only thing signed was the ND agreement. They have used this to threaten ex members in court. Most didn’t get 1099’s either. Keeping good books was the only way for someone to claim their income NXIVM paid them.

    It’s what they do, they lie and have a circle of people who will lie for each other to attempt to make

  • Is it not possible to get copies of both transcripts? Placing them alongside each other would clearly show that she perjured herself as she says two contradicting things.

  • The fucking arrogant bitch. Even now, she is still being a cunt. This is what she has been doing for years while NXIVM members just sat back and watched. Trying to drain people’s finances through the courts. What did NXIVM members do when Susan Dones, Joe O’Hara and others were being shit on like this? That is why it is so strange that Susan Dones would defend Kristin Kreuk who clearly could not give a damn what was happening to her in the courts. She obviously thought it was acceptable for NXIVM to do this.

    • I guess Susan’s problem with the Kruek posts is the war that happens in the comments section over Kruek. It HAS gotten pretty ugly, at times.

      Kruek’s the face that launched a thousand insults on here.

      I were her agent, I’d be thrilled!

  • With revenge as the goal, what really matters is how much in legal fees she can force Parlato to pony up, more so than winning. Plus it is to force him to fight on another front at the same time as his criminal case.
    Bankrupting him is probably more important than getting 1M$US back.

      • So true! This really does shine a light on her nature and why she is exactly how Frank has described her all along – a lying, vindictive, cruel woman who would spare no expense to bring down those against her. I hope she falls hard. Imagine what a shock prison will be for her!

        • Prison will be a shock for all the NXIVM criminals.

          Raniere was worshiped like a God.
          Clare was catered to as a woman with deep pockets.
          Allison was an adored celebrity. A role model for young women.
          All three led lives of privilege.

          In prison they will all be despised as arrogant narcisisstic greedy fools

  • There are all kinds of problems with Clare’s law suit.
    One is the Statute of Limitations.
    Under California for a written contract it is usually 4 years.
    Written Contracts. Section 337 of California’s Code of Civil Procedure establishes a four-year statute of limitations for most written contracts. It requires a plaintiff to file a lawsuit within four years of the alleged breach, or similar event, of a written contract.

    Under New York law it is 6 years.
    Under New York law, the general statute of limitations applicable to contractual dispute is six years. C.P.L.R. §3211(a)(5). The cause of action accrues, and the statute of limitations begins to run, “at the time of the breach.”

    Clare did not file this suit until 10 years after the alleged breach.

    Another problem is that Clare repeatedly claimed under oath that she never entered into a contract with Frank Parlato.
    “Clare denied having entered into that contract.”

    Clare’s blaming of her father and the “Illuminati” for her commodities losses shows that she is extremely dumb or delusional.
    And the notion that Clare’s father screwed up the LA real estate market conveniently forgets the financial crisis of 2008 where several major financial institutions collapsed in a mortgage crisis.

    A word on confusing legal terminology.
    In most states the highest state court or State Supreme Court is called a Supreme Court.
    In New York the State Supreme Court is called “The State Court of
    Appeals.”
    In New York what they call a “Supreme Court” is actually the original trial court.

    “The New York Court of Appeals is the highest court in the U.S. state of New York. The Court of Appeals consists of seven judges: the Chief Judge and six Associate Judges who are appointed by the Governor and confirmed by the State Senate to 14-year terms.”

    So Clare is bringing her suit in the trial court called the New York State Supreme Court.

    “Clare felt free to sue me in New York State Supreme Court.”

    • With that legal discourse you have been promoted from Captain Obvious to Major Obvious.
      In the next of Shadowstate’s series of lectures, Shadow will expound on the Parol Evidence rule, and note that many folks are confused because “parol” has nothing to do with “parole”.
      But it’s all good. I’m sure lots of Frank readers were losing sleep over how Clare was able to bring her action in what they may have thought was an appellate as opposed to a trial court.
      Any update on the class action suit? (use your Google search on the Frank comments to see which commenter was the first to mention this). Has the “class” been certified under FRCP 23 yet?

      • Hey we should thank shadowperv for taking timeout of his busy day of internet porn, Smallville and LA Law reruns to enlighten us with his endless blather and bullshit.

        • Xandu:
          Why don’t you tell us why Allison Mack felt compelled to steal credit card information and jewelry from her slaves?
          It’s in the Federal indictment and it’s not “blather and bullshit.”

          defendant AILISON MACK, together with others, did knowingly and intentionally steal
          property by extortion, in that MACK and others obtained property, to wit: credit card
          authorizations, jewelry and sexually explicit photographs and videos, by compelling and
          inducing Jane Doe 5 to deliver such property by instilliag in her a fear that, ifthe property
          were not so delivered, MACK and others would (1) expose a secret
          https://artvoice.com/wp-content/uploads/2018/07/Nxivm-Indictment.pdf

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