About two months after they indicted Keith Raniere and Allison Mack – and about two months before they indicted Nancy Salzman, Lauren Salzman, Clare Bronfman, and Kathy Russell – the Feds undertook a civil forfeiture action against two NXIVM-related properties in Halfmoon, NY.
One of those properties was Keith Raniere’s sex lair at 8 Hale Drive – and the other was the townhome in which Allison Mack was living at 127 Grenadier Court.
As it turns out, the 127 Grenadier Court property was not actually owned by Mack – or, for that matter, by anyone associated with NXIVM. As previously reported by Frank Report, that property is owned by Dr. Suhasini Pinapati, a pediatrics specialist in Albany, NY.
Dr. Pinapati immediately sought to have the forfeiture action regarding her property dismissed because as she claimed in her initial filing in the matter, she had no relationship whatsoever with NXIVM – and was not aware that Mack was using the property to conduct branding ceremonies for members of DOS.
In preparation for the asset forfeiture actions, the Feds added Karin K. Orenstein to the prosecution team. Orenstein specializes in that type of case.
At the time the Feds moved to seize the two properties in Halfmoon, NY, we were anticipating that this was just the start of the such actions.
That’s because NXIVM had acquired millions of dollars of properties in and around Albany, NY.
As of mid-2010, those properties included the following (We believe that NXIVM added substantially to this list between now and then):
– 446 New Karner Road – Albany, NY
– 451 New Karner Road – Albany, NY
– 453 New Karner Road – Albany, NY
– 455 New Karner Road – Albany, NY
– 457 New Karner Road – Albany, NY
– 1 Brigantine Place – Clifton Park, NY
– 7 Grant Hill Road – Clifton Park, NY
– 115 Grenadier Court – Clifton Park, NY
– 3 Hale Drive – Clifton Park, NY
– 9 Hale Drive – Clifton Park, NY
– 11 Montgomery Way – Clifton Park, NY
– 12 Wilton Court – Clifton Park, NY
– 203 Yorktown Drive – Clifton Park, NY
– 1 Flintlock Lane – Clifton Park, NY
– 2 Flintlock Lane – Clifton Park, NY
– 3 Flintlock Lane – Clifton Park, NY
– 7 Male Drive – Clifton Park, NY (Undeveloped Land)
– 13 Twilight Drive – Clifton Park, NY
– 91 Button Road – Halfmoon, NY
– 1 Woodin Drive – Halfmoon, NY
– 2 Woodin Drive – Halfmoon, NY
– Corner Lot at Stone Quarry and Woodin Drive – Halfmoon, NY
– 3 Oregon Trail – Waterford, NY
– 1475 Route 9 – Saratoga Springs, NY (Apropos)
Frank Report previously released internal financial documents that showed, among other things, how much NXIXM and its related entities had paid for some of those properties – and much income was being generated from them.
It is unknown what has happened to all of the properties owned by NXIVM-related entities.
Since most of those entities are controlled by Nancy Salzman, it’s quite possible that she’s sold some/all of them to generate funds for her living expenses and those of her daughter and co-defendant, Lauren.
Maybe some/all of them have been transferred to the horde of attorneys who are representing the Salzmans, Russell, Mack, and Raniere.
Maybe some/all of them to set aside money to fund Raniere’s escape from the country should he ever be granted bail?
So, two questions for the prosecution team:
(1) Why did you try to seize Dr. Pinapati’s property when she had nothing to do with NXIVM?
(2) Why haven’t you move to seize any of the other properties?
Great post, as usual, thank you, Claviger.
Real estate is now a favorite way to hide the proceeds of criminal activities.
Why financial criminals use real estate to launder money
Property is stable, functional, and less scrutinized than other landing spots for ill-gotten gains
https://www.curbed.com/2018/8/10/17674584/money-laundering-real-estate-paul-manafort-trial
Update on Hillary “THE” Horrible: https://www.youtube.com/watch?v=S1BK1teZPyg
Ben looks more right every day.
Most counties have property tax websites and the property owners can be found. Some websites also have the former owners.
Could the properties in question be shielded some how by a outside third party or trust of some sort that precludes the properties from being seized by the government?
I assume the DOJ knows about the properties.
Interesting, Claviger. Are there any laws prohibiting forfeiture of properties prior to conviction? You’d think.
Yes, niceguy, Claviger is a saint! He takes a lot of Schlock abuse, unfortunately, doing his utmost as usual to help out. Bangkok even started in on him. …God bless him.
NXIVM had set up a bunch of different companies to own different properties. So, I’d be surprised if all those properties were now held by one trust.
I think for the most part the Feds just haven’t taken the time to take appropriate action against all the properties. Maybe they will now.
KR,
Thank you for the reply.
The purpose of a forfeiture action is to ensure that the defendant doesn’t dispose of the asset before the criminal case has been concluded. That’s why it’s so surprising that the Feds haven’t moved to tie up more of the millions of dollars of property that NXIVM-related entities had acquired over the years.
Thanks, KR, and pardon my ignorance for asking but is it against the law for an indicted defendant to dispose of assets? Would anyone assisting them also be committing a crime by doing so if it is?
Also, I know NX is legally represented by Michael Sullivan but was NX itself ever indicted?
This IS starting to stink of some shenanigans — between the LA (and Fiji) properties Clare never declared in her bail hearings that were never again mentioned in open court, the legal trust and the attempt to seize an “Allison” rented property unrelated to NX — except it being where most brandings took place.
Btw, wonder why brandings (er, painful yoga techniques I mean) weren’t performed in more of these owned properties?
I think the property trail deets would also reveal premeditated motive and method. Intrigued me that Allison co-signed for Brandon Porter’s place — doubt that was “Allison’s idea” any more than the branding itself was.
Why would Nancy and Lauren have to ask Nancy parents to put up a bond for their bail if Nancy had these properties?
Maybe it was to fool the DOJ into believing they were broke so they could use them for other means behind the DOJ’s back.
These NXIVM insiders are a slippery bunch of liers. They sue people in court saying they destroyed millions of dollars of business but when arrested themselves, all but Clare Bronfman are broke.
KAR said he had no money when he was arrested but Pam gave him her trust fund. It’s been said to be 8 million dollars. Who been putting money into his commissary account? There is a limit of how much he can have added each month.
How are these women supporting themselves is a big question? NXIVM is dead.
This means no head trainer income for Lauren Salzman. Is she waiting tables? No company income for Nancy Salzman who has been too ill to travel to court hearings, let alone work as a nurse.
Has Kathy Russell found a bookkeepers job? Maybe she found a mob boss who needs two sets of books.
Allison Mack is a no brainer; she’s back at home with mommy and daddy. If she has residual income from her shows like Smallville, then she can at least help buy groceries and buy her plane tickets back and forth to NYC.
A little correction in terms of your comment about commissary accounts. There is no monthly limit as to how much money can be put into an inmate’s account. But there is a limit as to how much an inmate can spend each month on commissary purchases — and also some limits as to how much of certain products can be bought at one time. BOP’s standard monthly limitation on commissary purchases is $370.00 per month.
Krclaviger,
Excellent reporting, investigating, and research !!!
Why has the DOJ not seized those properties?
Unless the properties in question are held in some kind of trust or legal instrument;
Leaving the properties in some sort of quasi legal limbo.
You deserve a Pulitzer from Columbia University or at the very least a Peabody Award.
I am not being flippant or facetious.
Krclaviger you are doing important work.
I wish I could claim the same.
KRclavinger,
You really care, and the fact that you have decided to take on such a thankless task of reporting and doing investigations on NXIVM is incredible commendable.
You are an excellent human being.