Kathy Can’t Visit Nancy – Clare Asks to Tap Trust to Pay $6 Million ‘Get out of Jail’ Fine

MK10ART's painting of Clare Bronfman wearing a jockstrap under the orders of Keith Raniere.

Some news from the land of Nxivm.

To begin with, Kathy Russell and Nancy Salzman will not be meeting in the near future, at least not without their attorneys present.

Despite Kathy making the request to Judge Nicholas G. Garaufis to spend time socially with Nancy – and the prosecution and Pretrial Supervision consenting to these meetings – the judge denied her request.

He did so without giving a reason. Simply denied. The two can’t meet.

Kathy, who is moving soon to Georgia and who will be sentenced in July by Judge Garaufis, had hoped to spend some time with her former Prefect [Salzman]. Instead, she’ll have to simply move on with her life – and prepare to spend 6-12 months in federal prison.

I don’t know why the judge denied her request. But perhaps, it’s because she’s facing sentencing and the trial is still ongoing – and because he doesn’t know – nor was he told in the request filing – if either Kathy or Nancy [who faces sentencing herself in July for her crimes] will be witnesses.

Even if they are not witnesses, the judge perhaps saw only a downside to the two of them meeting since Nxivm and its associations have not been fruitful for Kathy. On top of that, there is the possibility that the Northern District of NY may have other charges in mind for one or both of them.

We know for certain that the investigation of Nxivm is still ongoing – which means the two of two (and a lot of others) may not be out of the woods yet.

While Kathy was not approved to visit Nancy, Nancy’s request to visit her parents without the judge’s approval [with permission of pretrial services] was approved.


Also, this little gem was filed sua sponte (Latin: “of his own accord”) by Judge Nicholas Garaufis:
ORDER: Attorney Michael Sullivan, on behalf of his client (non-party Nxivm), shall submit a sworn declaration regarding the status of Nxivm by no later than May 20, 2019, at 3:00 P.M. This declaration shall state the names of all current officers and directors of Nxivm and state whether the Nxivm board of directors has held any meetings since December 19, 2018. Mr. Sullivan may file this declaration under seal. The court will email this order to Mr. Sullivan and his associate. Ordered by Judge Nicholas G. Garaufis on 5/17/2019. 
What does this mean? As readers know, Nxivm – via its attorney Sullivan – claims to be still in operation.
In  a Memorandum-Of-Law filed in April, Sullivan maintained that Nxivm currently conducts “ordinary business practices”, and that the company had a Board of Directors meeting in December 2018. Sullivan also noted that Nancy Salzman is president of the company but is not currently taking an active role. NXIVM’s Executive Board has three members – Clare Bronfman [convicted] Lauren Salzman [convicted] and Omar Boone.
Clare Bronfman & Lauren Salzman still on the executive board of Nxivm?
Is Omar Boone running Nxivm now?

The judge wants to know if Nxivm has had any more board meetings since December and wants to know who its current officers and directors are.

Considering that Lauren Salzman is testifying right now about how horrible Nxivm and Raniere were – it seems odd that she is still a board member.  Both Lauren and Clare Bronfman await sentencing. Both have said, in their respective allocutions, that they were sorry for their roles in the criminal racketeering enterprise that is Nxivm.

If they’re still on the executive board of Nxivm, will this impact their sentencing?


Finally, the heiress who got off with the light sentence, Clare Bronfman, will be paying her $6 million fine to the DOJ out of her personal trust fund.

The fine was part of a very generous plea agreement entered into between Clare and the DOJ.

Bronfman likely purchased years off her sentence in return for a hefty payment of $6 million to the government -[and $96,000 to Sylvie]. She must make the payment within 60 days of her guilty plea that occurred in April.

After her arrest in July 2018, the Court set a $100 million bail for Bronfman. As part of the conditions of bail, the advisors of her trust [that she hastily formed in 2018 to tuck her money into it in order to avoid seizure by the government] agreed to inform the Court before authorizing any large expenditure from the trust.

Bronfman’s attorney, Kathleen Cassidy has written to get the Court’s authorization “for the trust advisors to approve and direct the payment of $6 million to the government in satisfaction of Ms. Bronfrnan’s forfeiture obligation under the plea agreement.”

Judge Garaufis approved the request.

Her payment of $6 million – about 3 percent of her net worth – satisfies her financial obligations for her many, many crimes.

Clare got herself one of the sweetest plea deals money can buy.

About the author

Frank Parlato

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    • I think you mean hypno-therapy sessions, Snorlax.

      Kathy doesn’t get to do lunch with the bosses, let alone eat except on all fours under the table maybe.

  • No doubt the prosecution will not want one pleading defendant to implicate another pleading defendant because as witnesses it will make their case not as credible.

  • This is surprising, the judge going against all of the input (as far as we know) regarding Russell and Salzman “socializing” that he received. Good for him, and good for him for looking into the current NXIVM corporate arrangement. He looks to be determined to get rid of NXIVM, at least in the U.S., where he has jurisdiction. Delegating Salzman to others makes sense as well.

  • “Considering that Lauren Salzman is testifying right now about how horrible Nxivm and Raniere was – it seems odd that she is still a board member.”

    Lauren is testifying to save her rotten hide.
    Lauren is a rat outing all the other NXIVM rats.
    Full run down on top players of NXIVM by former member
    April 18, 2018
    By Someone Who Dealt with Them
    “2] Lauren Salzman is also a demon. She comes by it naturally like her mother.
    Crimes: Immigration fraud, tax evasion fraud, potentially accessory to rape, extortion; I’d argue sexual assault or assault in general.
    Interesting fact: Lauren lied to most of the members of DOS about what the DOS course was and about the branding itself. She’s in a lot of trouble.
    Lauren Salzman was conspiring with Allison Mack to frame India Oxenberg for the entire NXIVM DOS scandal.
    Salzman & Mack: India Oxenberg to ‘take the fall’ for the sake of the mission
    Rats always turn on each other when the going gets tough.

    “Both (Lauren and Clare) have said, in their allocution, that they were sorry for their roles in the criminal racketeering enterprise that is Nxivm.
    Lauren and Clare, like Nancy, Allison and Kathy, are sorry for getting caught.

    As soon as possible these “ladies” will be back to their old tricks.

      • I can confirm from the cultists I know. They’re still propping it up because it would destroy another 1000 lives if it collapsed. Some of them are too wealthy and successful to let it happen. But it’s likely there is a power struggle in the void and it fractures the group. There is already a ton of soured relationships because the truth came out.

        • Thanks for the intriguing tidbit….

          How would some further disintegration “destroy 1,000 lives”- “Soured relationships” and that sort of thing are often the worst of what happens for the majority of everyday, members, when a group falls apart – they will largely move on with their lives, or even find some new group to join if there is really a void to fill.

          ….I hope you’ll say more.

  • How odd is it that NXIVM Board with two member going to jail and one in Mexico-

    A company that will never truly be functional.

  • Nancy will have to find someone else to do her yard work now that Kathy can’t come visit unless one of their attorneys is present.

  • Yeah, I was thinking that there was still too much up in the air, to let Russell and Salzman get together and talk. Also, Salzman didn’t make a deal, she just plead, so where she stands is really open to question, and given her deep culpability from the early days, I suspect that she is the least repentant of the bunch.

    Bronfman’s request shows just how pinched for ready cash she has ended up, though she still has still has assets she benefits from, especially if she still has a lot of money in untouchable trusts that yield income – I’m not clear about her restricted assets. Particularly once civil suits, and her costs of defending them, are said and done, she will end up much more crimped in her lifestyle, especially when it comes to something like being able to buy a horse farm or an island.

    • Anonymaker.
      “I’m not clear about her restricted assets”
      Is she still wearing that jockstrap-

      • 🙂

        Reports about her wealth have been varied and confusing. Poking around a bit more, as best I can tell she has $100 million, not more, in some older family trusts that are untouchable. Then she has the remainder of her inheritance that she had access to, and has been squandering, which was not enough to secure her $100 million bail without her sister’s family, though close to it, leaving her worth about $200 million – not $400 as some sources have cited, though perhaps that’s about what she started with.

        I suspect that most or all of her remaining available assets will end up being consumed by the legal mess she’s gotten herself into, including tax and civil liabilities. She would be left with the income the trustees grant her from that $100 million, but that would be a huge comedown from her days of being able to buy an island or a horse farm – or blow $10 million on attorneys in some case (besides the present action, see Herbits’ testimony about the Precision Development case).

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.

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