Nancy Salzman pleads guilty to 1 count of racketeering conspiracy – will almost certainly spend time in prison

The former president of Nxivm, Nancy Salzman, 64, will likely be working with the Feds from this point onward.   After that, she’ll be their guest – in federal prison.

In Brooklyn Federal Court today, she pleaded guilty to one count of racketeering conspiracy in the NXIVM case – and also admitted she stole email addresses and passwords of others and altered a tape used in a lawsuit against cult deprogrammer Rick Ross.

The racketeering conspiracy count carries with it a maximum 20-year sentence but the sentencing guidelines call for a sentence in the range of 33-41 months, based on her lack of a criminal record and taking responsibility for her wrongdoing.

Depending on her cooperation – or lack thereof – against the other defendants in the case, the prosecution could recommend an “upward” or “downward” departure from the guidelines.

And, as just saw in one of Paul Mannafort’s cases, federal judges are not bound by the guidelines.

Regardless of how helpful she is, however, it is almost inconceivable that she won’t spend some time in federal prison – and, after that, at least 3-years on probation.

Her prison stay will likely to be at a federal women’s camp or low-security prison.    

Her taking responsibility for her crimes means she has to tell all she knows.  She began today in court as she read from a prepared statement.

Her voice breaking at times – and at other times sobbing – she quietly stated for the record: “It has taken me some time and some soul-searching to come to this place …  I want you to know I am pleading guilty because I am, in fact, guilty. I accept that some of the things I did were not just wrong, but sometimes criminal. If I could do it all over, I would. I justified them by saying that what we were doing was for the greater good. I am deeply sorry for the trouble I caused my daughter, the pain I caused my parents. I still believe that some of what we did was good.”

Salzman admitted she obtained passwords and user names to monitor Nxivm enemies – whose names have not been revealed – and to monitor Nxivm members suspected of being moles within the organization to see if they were revealing group secrets.

She confessed to “having others destroy video tapes” memorializing Raniere’s teachings.

Salzman sobbed when she read,  “I am deeply sorry for the trouble I have brought to my daughter.”

Her daughter, Lauren Salzman, stands charged in the same case and is facing up to 20-years in prison.  The Nxivm trial is scheduled to start April 29th.

As an indication she is fully cooperating with the Feds, Salzman will not be sentenced until July 10th – well after the trial is expected to conclude.

If the trial is delayed by a superseding indictment, Nancy’s sentencing will likely be delayed also.  The prosecution will want to weigh in with a sentencing recommendation to the judge, and it will be based on how well she cooperates as a witness during the trial.

Her lawyer Robert Soloway, told The NY Post that Nancy did not sign a cooperation agreement to testify against her fellow Nxians.  However, the prosecution does not need a written cooperation agreement with Nancy, as long as sentencing is scheduled after the trial.

To get support for a lighter sentence from the prosecution, she will likely have to testify honestly and without any limitations.

Whether her cooperation includes giving evidence and testimony against her daughter Lauren is unclear.

Lauren was barely of legal age when Nancy started encouraging her to give her life to Nxivm, and to begin having sex with Raniere.  Both mother and daughter were part of Raniere’s harem at the same time.

Lauren spent her adult life working as a top leader for Nxivm – and waiting for Raniere to fulfill his promise to impregnate her, sources said.

Raniere promised Lauren he would sire for her an avatar baby – his first born child – more than 15 years ago.  He has sired at least two children since he made that promise.

In anticipation of the advent of their child, Lauren reportedly set aside a room and decorated a nursery in her home – for the baby that never came.

Did mother Nancy really have any true regret – or were these just tears for show? Time will tell.

While Nancy pleaded guilty to only one racketeering act, there were two “predicate acts” that comprised the charge.

She admitted to stealing the email passwords of people perceived to be NXIVM foes – and to altering tapes of herself teaching courses before turning them over for use in a lawsuit against Ross.

Salzman ordered the altering of videotapes of herself teaching NXIVM courses to remove certain teachings that might suggest Nxivm was cult, before turning them over for use in a federal lawsuit against Ross, a cult deprogrammer that Raniere chose to sue.

NXIVM sued Ross and The Ross Institute in 2003 after it published excerpts from a NXIVM training manual provided by Nxivm student Stephanie Franco who had signed a non-disclosure agreement.

Federal Courts determined the institute’s quotations were covered by the fair-use doctrine. The suit was dismissed in late 2017 – 14 years after Raniere first started it.

Nancy Salzman was arrested – along with Clare Bronfman, Lauren Salzman, and Kathy Russell, last July.

Nancy was released on $5 million bond. She wears an ankle monitor but is permitted to leave her house by day as long as she returns home at night.  She was originally under home confinement, but several weeks ago the judge approved her request to be able to leave her house during the day. The judge likely approved the condition in part based on the prosecution’s consent to that arrangement.

The Times Union reports that, “According to a person familiar with the case, Salzman’s attorney, Robert Soloway, did not inform Raniere’s attorneys that Salzman would be pleading guilty before the news was first reported Tuesday afternoon by the Times Union.”

This may have come as a surprise to Raniere in his jail cell as well as the other defendants although rumors of Nancy taking a plea deal have been reported by Frank Report since last September.

Besides prison, Salzman faces a maximum fine of $250,000 plus possible restitution and forfeiture.

Currently, the Feds are holding $520,000 of cash seized from a raid on her home in Waterford NY on March 27, 2018, the day after Raniere was arrested.

Salzman and her attorneys left the courthouse without taking questions from reporters.

***

An eyewitness, who readers know as VillageDianne, tells Frank Report:

“I was late to the hearing, but in time to hear the judge describe the implications of her plea. The judge said the max sentence in the guidelines for her is 20 years. There is no minimum. The judge asked her to describe in her own words her guilt in count one of the superseding indictment. Even though she was standing facing away from me, addressing the judge, it was obvious she was breaking into tears as she spoke. One of her lawyers put his arm around her onto her shoulder to comfort her.

“She described how she thought she was helping people, acting for the greater good, and would change things if she could. She said she took actions against critics of NXIVM. I heard her mention her daughter(s) but I couldn’t catch what she said. That’s about all I could make out of her remarks, with her facing away from me.

“The judge set an appointment for her with probation. Before sentencing she has the right to present a letter to the court, and have others write letters for her, attesting to good things she has done. The judge said he’s sure she has done some good things, and she should be sure to include them.

“Later when Nancy left court her countenance appeared less troubled than I’ve seen at other hearings.”

***

Here are Village Diane’s photos:

 

 

Nancy arm in arm with her attorneys Robert Soloway [r] and David Stern [l]

It’s all over for her now.

About the author

Frank Parlato

Frank Report’s founder and lead writer Frank Parlato is one of the internet’s most decorated investigative journalists. His writing and investigations have helped expose major criminal organizations and scandals.

Frank’s work has been cited in major publications all over the world, including The New York Times, New York Post, The Daily Mail, VICE News, CNN, Rolling Stone, and more.

He is also the publisher and editor-in-chief of Artvoice, The Niagara Falls Reporter, Front Page and the South Buffalo News.

51 Comments

Click here to post a comment

Leave a Reply

  • Raniere probably seemed hot to her after her two failed marriages with 2 gay guys !

    !… I can understand marrying one gay guy but how can you do it again without being aware ???This is a very smart woman that acted so stupid because of her greed and her need to be sexually fulfilled ….

  • Wouldn’t anyone who wrote a letter supporting Nancy Salzman be on Clare’s hit list for life for supporting a turncoat?

  • Nancy’s statement in court yesterday was a bit contradictory as was her physical demeanor. First, she stated her guilt and then followed up with “I still believe that some of what we did was good”. Nancy sobbed in court and I felt some compassion for her until I saw multiple photos of her grinning and looking relieved and almost elated leaving the courtroom. Looks like those were crocodile tears staged for the Judge. Big mistake Nancy! The judge sees those post courtroom photos! You should have kept that grin off your face until you were safely tucked away in your get away car.

    Although there are no absolutes pure good or pure evil, situation ethics looks good in theory but it is what got you into trouble?
    I don’t think that this was the time to remind the judge that there was good in Nxium. I can’t think of one individual that left this program enlightened or truly successful! I can list many that were harmed emotionally, physically and financially from the horror of Nxivm.

    I think Nancy’s time before going to prison would be well spent digging a little deeper into her soul and facing the depth of pain and suffering you inflicted through your teachings on everyone that walked through the door of Nxivm. I know the teachings belittled “pain and suffering” but Nancy we are now in the real world where you need to own up to the damage you did for the past 20 years. You owe it to all those honest souls looking for a more successful joyful life and all you gave them was debt and emotional pain. Perhaps some monetary restitution would be in order. The judge might look at you more kindly.

    For you personally Nancy, my advice would be to hire a good cult deprogrammer before showing up to serve your time in Federal Penitentiary. That would put you back in reality and better prepared to face the prison hierarchy and culture. I don’t think Rick Ross is available at the moment. He may have a backlog of Ex-Nxivm students.

    One last piece of advice. Consider a big apology to your ex-husband Dr. Michael Salzman and his wife, Sandy. The damage you caused them and denying them access to Michelle and Lauren. This is one of the most despicable crimes committed by you and Keith.
    As a mother you have failed miserably!

  • I 100% believe every word that Nancy said. Keith used classic shifter strategy on everyone. “In the name of the greater good” let’s do this bad thing. Problem was that everyone believed there truly was a “good” mission of the organization.

    BTW In the article, I contend that a more factual way to state “barely of legal age”, would have been for Frank to type “a 22 year old college graduate”.

  • I hope he has adequate drainage in his cell; hate to see him drown in a puddle of his own tears now that we’ve waited this long for him to come to trial

  • Will those whose files she hacked into be notified so they can then pursue civil suits against her personally?
    That would be karma considering NXIVM borrowed from the Scientology playbook in litigation against its perceived enemies.

    So, after all is said and done, Nancy operated under the maxim “the end justifies the means.”

  • Nancy Salzman said in court yesterday “I am deeply sorry for the trouble I caused my daughter, the pain I caused my parents. I still believe that some of what we did was good.”

    Did the Nazi guards at prison camps such as Auschwitz believe they were doing “some good” by feeding those they interned while working at the camps or sending the undesirables right to the gas chambers?

    Is a glass of water “good” when you’re very thirsty if it contains some poison that someone slipped into it before it was handed to you?

    Maybe Nancy Salzman was off her game due to not having on her Prefect Sash? Could she have taken off her shoes before entering the courtroom to feel like she was going to teach a class? If only everyone could have read the NXIVM mission statement before her pleading guilty to being a criminal.
    Maybe Nancy could have been more mindful of all the lives she should be considering regarding her behavior.

  • I forgot to add: The government attorneys were smiling as they exited through the spectator area. Those were some happy lawyers!

  • Not even a heads up to his ringleader ?? Soloway went rogue. My guess is they are deferring unsealing indictments against Ben and Michelle pending her testimony. Adding that to her performance in the trial precludes the need for a cooperation agreement. Also, her testimony is likely more credible to a juror without a cooperation agreement.

    Everybody who has been negatively impacted by their experiences with Nancy in ESP can also write in for her sentencing.

    Aside from some weight being lifted from her conscience by admitting her guilt and the relief of one massive unknown being eliminated, she probably also thinks the Judge fell for her Mother Teresa act.

  • It does mention SOP, and other organizations, and it does say that the GRAND JURY has info of co conspirators…. so that means what? Is there a private indictment? Is that were Mexicans are accused but not in public?

  • In the courtroom on Wednesday, Salzman broke down as she apologized to her daughter and her parents while pleading guilty.

    “It has taken me some time and some soul-searching to come to this place,” she said. ” … I still believe some of what we did was good.”

    Nancy has two daughters. Which one was she apologizing too and why not both? Salzman also has other family members so why did she leave them out?

    What about all the NXIVM people you were abusive towards Nancy Salzman? What about those she helps to file lawsuits against that did nothing other than to leave and attempt to tell the truth about what was going on behind the disguise of the training program, the criminal acts she admits to doing? What about the ones who’s emails she conspired to hack?

    Searching your soul isn’t going to heal it, Nancy. You think you would know that by now. Is it going to take you sitting in prison for 3 – 4 years to release you have done damage to people and you might not be responsible for 9/11, but you are responsible for your actions towards others who put their faith in you.

  • New Superseding Indictment is out. “The new racketeering charges include multiple counts of sexual exploitation of a child and possession of child pornography, and one count of visa fraud. If convicted of the child exploitation charges, which the government said are buttressed by electronic messages, photographs and witness accounts, Raniere faces a minimum of 15 years in prison.”

    No new defendants.

    https://www.timesunion.com/news/article/NXIVM-President-Nancy-Salzman-pleads-guilty-in-13685799.php

      • Non-DOS “collateral” was probably collected on EVERYONE in the group over the years, via EMs or vids–with or without the member’s knowledge–to manipulate, exploit, or control them. The richer or more important the member the more likely.

        Therefore there IS such collateral on KK. And if she had sex with KAR (or Nancy or Mack) there certainly is video of that–and maybe of her just having sex with her BF, Mr SOP.

  • In the meantime, there are some who wonder if Salzman will make it to trial – if she plans to testify against Emiliano Salinas – who may be indicted with the coming superseding indictment.

    Although it may seem remote, there are some who are urging Nancy to seek witness protection status since Emiliano’s father former Mexican president Carlos Salinas – the reputed boss of bosses of the Mexican drug cartels – has been known to provide much swifter punishment than the US feds ever thought of his reign of terror that grips all of Mexico is threatened.

    It has long been reporter on this blog that Nancy and daughter Lauren were actively engaged in cash smuggling with Emiliano and others in Mexico.

    How far will Carlos Salinas go to silence Nancy may depend entirely on whether the Feds plan to pursue Emiliano.

    ——————————————————————

    BY ALL MEANS I URGE NANCY SALZMAN TO SEEK WITNESS PROTECTION IF SHE TESTIFIES AGAINST THE SALINAS CRIME FAMILY.

    Shadow State

        • Salinas has connections to both the Clinton and Bush families. I can not find any ties to the Trump Family on a positive note.

        • Same as the help from high ranking friends in the Republican Party, namely, a small donation to Harvard by Charles Kushner to benefit his son Jared

          • TK,

            Until the 2016 elections Kushner senior was a Democratic Party donor.

            It’s all about power and money and I will take our capitalist society with whatever problems it has over anything else.

            We all live in a nickel and dime world get used to it.

            The only problem I have with either party is when the politicians sell us out to other countries.

            Do not forget that Bill Clinton in 1999 transferred satellite technology to the Chinese the same technology that can be used for nuclear missile systems.

            The web link to a NY Times article about the missile technology and the Chinese is down below at the bottom.

            Whatever Trump did or did not do is as as what Clinton did when he transferred the satellite tech to the Chinese is a lot worse. The Chinese then sold the technology to Pakistan and India and God knows who else.

            I am surprised Trump never brought this up during the debates or at some other time.

            If you love or hate Clinton you will want to read the link below

            https://www.nytimes.com/1999/05/11/world/clinton-approves-technology-transfer-to-china.html

          • Hey fraud, I thought you were leaving the site? I see you are the typical democrap liar. Chuckie Kushner is a diehard fucking corrupt democrat. Please take your leftist bullshit elsewhere, like the mental institution.

          • I thought a while back you told Parlato to fuck off and you were out of here. See you are a typical democrat hypocrite. Stop lying about Chuckie Kushner. He is a corrupt liberal democrat, the type you seem to idolize.

      • Frank, are you implying that these are the ONLY ones who will be charged, and no more will be added later to this case?

        • It seems that way. Unless there is another superseding indictment – or something crops up in the Northern District of New York DOJ – Emiliano Salinas, Alex Betancourt and all the other Mexicans will get off scot-free.

          • so I assume that non-Mex exNXs like Clyne, Oxenberg, Kreuk, Hildreth, Edmundson etc are scot-free also.

          • looks like they are – unless the northern district decides to do their job. After all that is where most of the crimes actually occurred.

          • So does this mean that India won’t be charged for her alleged crimes? What about people like Nicki Clyne? How did India get named as CC-2 but not Clyne who was there far longer than India and according to this site was still loyal and active. What about if Nancy reveals the names of public officials or law enforcement who may have accepted bribes or consultants who committed crimes on behalf of NXIVM? Would they just be charged separately?

          • looks like the defendants will remain as they are – and the others will go scot-free.

      • Is it possible they are going to wrap this case up before opening any sealed indictments against additional persons ? With convictions already in hand, it will only make future prosecutions easier.

      • People seem to forget that Emilano and Kreuk are not US citizens and are celebrities in their own nations. Good luck with extradition.

        • Salinas will never allow his son to be extradited. El Chapo took 2 years. Do the math. The DOJ has a limited amount of resources and time.

          We should all thankful Raniere has been brought to justice.

    • AGREED, Shadow. She may also be in danger from Raniere or Bronfman.

      There are those here who wish Nancy great harm. I am not one of them. She did the right thing by standing up.

      • Nancy was protecting Nancy only. No way was she doing the right thing because it is right.

        Nancy veered off that path decades ago.

        What happened is she was shown the evidence against her and deftly maneuvered to plead out, nothing more.

        Nancy wouldn’t recognize the 10 commandments if they hit her in the face.

        • Scott(Bangkok),

          You have such a deep understanding of humanity.

          Scott only cared about money when he joined Amway. Sadly Scott could only sell Amway to his mom, dad, and a grandmother with dementia. 🙁

          • I know, I’m sure you’re jealous. Actually, I only sold some skin care products to my mom, because she wanted to be supportive of me. It’s called sympathy sales.

          • Repeat sympathy order from mama? Or did she secretly go looking for a different NuSkin distributor since you quit?

About Frank Parlato

About Frank Parlato

Frank Parlato is an investigative journalist.

His work has been cited in major publications all over the world, including The New York Times, The Daily Mail, VICE News, CNN, Fox News, Rolling Stone, People Magazine, and more.

Frank Report is dedicated to Frank's investigative journalism and the pursuit of truth.

Read more about Frank Report's mission.

Got A Tip?

If you have a tip for Frank Report, send it here.
Email: frankparlato@gmail.com
Phone / Text: (716) 990-5740

Archives

Loading cart ...
%d bloggers like this: