US Attorney for the EDNY Richard Donoghue

DOJ Release: EDNY Gives Thanks to DO-Nothing NDNY [Thanks for Nothing]

Readers might enjoy the press release for the Department of Justice, US Attorney’s Office, Eastern District of New York [EDNY] announcing the conviction of Keith Alan Raniere.
It provides an insight into how they take credit for their victories.  It is in large part a “thank you to one and all” – and I find it interesting that within their “one and all” they included the US Attorney’s Office for the Northern District of New York [NDNY].
As many readers know, the NDNY achieved considerable infamy for not prosecuting Raniere – for decades – despite their fielding the first and many subsequent, legitimate complaints about him and his deadly Nxivm criminal group.
Of course, in the last 24 hours, there’s been a great deal of applause and hearty commendations heaped upon the EDNY, and deservedly so. In retrospect, it was just about the prettiest little trial anyone ever saw in the conviction of such an ugly monster.
But, really, to thank the NDNY for their help?  Isn’t that taking professional courtesy a bit too far?
The NDNY should have been the ones who convicted Raniere and thanked the EDNY. They muffed it. Muffed it for years. The NDNY qualifies for “buffoon law enforcement agency of the ages.”
It was they who were first given evidence of NXIVM’s criminal activities – and lots of it. It was the NDNY that kept ignoring the pleas of women brutalized by Raniere, who kept turning a deaf ear to them. It was the NDNY that permitted [when they could have done something] the terror and the torment [not to mention the branding and blackmailing] of a hundred victims – right in their home turf.
And now they get thanks from the EDNY – who – from outside the area where Raniere committed most of his crimes – went in and did their job for them.
The thank you to the NDNY – it’s pure, classic, stinging irony.
Perhaps, the real meaning of the thanks, the shout-out they got from the EDNY, should be gleaned from between the lines:  What brought splendor and honor to the EDNY and Assistant US Attorneys Moira Kim Penza, Tanya Hajjar and Mark J. Lesko, and their boss, Trump appointee Richard P. Donoghue, is the fact that they went after the monster and took him down.
While the NDNY did nothing.
Had the NDNY done their job, then the EDNY would not have had their moment in the sun – their historic, complete, colossal, efficient, brilliant, innovative, precedent-setting take-down of a dangerous, sex-trafficking, racketeering cult backed by the Bronfman liquor fortune.
No, if it weren’t for the NDNY’s buffoonery – the EDNY would not have had a chance to accomplish this glorious work.  So let me add my thanks to theirs.
Thank you, NDNY — for nothing.

DOJ EDNY PRESS RELEASE

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Department of Justice
U.S. Attorney’s Office
Eastern District of New York

FOR IMMEDIATE RELEASE
Wednesday, June 19, 2019

Jury Finds Nxivm Leader Keith Raniere Guilty of All Counts

Raniere and His Co-Conspirators Operated a Racketeering Enterprise Victimizing Women Through Sex Trafficking and Other Crimes

Keith Raniere, the founder and leader of Nxivm, was convicted today by a federal jury in Brooklyn of all seven counts of a superseding indictment charging him with racketeering and racketeering conspiracy; sex trafficking, attempted sex trafficking and sex trafficking conspiracy; forced labor conspiracy and wire fraud conspiracy.  The racketeering offense included predicate acts of extortion, identity theft, and production and possession of child pornography.  The verdict followed more than six weeks of trial before United States District Judge Nicholas G. Garaufis.  When sentenced, Raniere faces a mandatory minimum of 15 years’ imprisonment, and up to life in prison.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.

“As found by the jury, Keith Raniere masqueraded as a self-help guru to gain the trust of his followers, and then exploited them for his own financial gain and sexual gratification,” stated United States Attorney Donoghue.  “Raniere and his co-conspirators will now face the consequences for the serious crimes they committed and the profound harm they have caused their victims.”  Mr. Donoghue extended his grateful appreciation to Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.

“Nxivm’s so called self-help programs did anything but help the women they professed to empower,” stated FBI Assistant Director-in-Charge Sweeney.  “What’s been proven today is that Keith Raniere preyed on the vulnerabilities of his many female victims, sold them lies and other falsehoods, and committed horrifying acts of coercion.  This guilty verdict is a welcome end to a case that highlighted the many avenues of criminal activity pursued by a man whose intentions were deplorable beyond belief.”

“IRS Criminal Investigation plays a pivotal role in tracing the illicit funds from such horrendous criminal behavior,” stated IRS-CI Special Agent-in-Charge Larsen.  “We proudly stand with our law enforcement partners in uncovering such crimes, and justice has been served.”
As proven at trial, in 2003, Raniere founded Nxivm, a purported self-help organization headquartered in Albany, New York, with centers operating elsewhere in the United States, Mexico and Canada.  Raniere established Executive Success Programs (“ESP”), a series of purported self-help workshops in which participants paid thousands of dollars to attend classes based on Raniere’s teachings.  In 2015, Raniere added a secret society within Nxivm called DOS or “The Vow,” with levels of women “slaves” headed by “masters.”  The goal of the criminal enterprise was to promote Raniere, for example, by exalting his teachings and ideology, and to recruit new members, including as sexual partners for Raniere.

In the course of their racketeering enterprise, Raniere and his co-conspirators committed multiple crimes, including sex trafficking, forced labor, computer hacking, fraud and identity theft.  Raniere maintained command and control over his DOS members by collecting “collateral” from them, such as sexually explicit photos and letters making accusations against their loved ones that would be embarrassing if disclosed.  For example, “Nicole,” a victim witness, testified that she was coerced into providing labor and services for Nxivm, which included taking photographs of naked women members and engaging in sex acts with Raniere, under threat of release of her collateral.  DOS slaves were also branded with Raniere’s initials in their pelvic area using a cauterizing pen.  The members of the “inner circle” were rewarded with financial opportunities and increased power and status within the enterprise.

Raniere and his co-conspirators also worked to support Raniere and protect Nxivm from perceived enemies.  Raniere conspired with two of his closest associates in Nxivm to have “Daniela,” a member of his inner circle at the time, cross the Canadian border into the U.S. with a fake identification card bearing the name of a dead woman.  Daniela testified that she assisted Raniere hack into the email accounts of persons he believed were enemies of Nxivm.

Among Raniere’s crimes was sexual exploitation of a child and possession of child pornography.  Specifically, Raniere began having sex with a victim member identified as “Camila” when she was 15-years-old and he was 45.  Raniere also took naked photographs of Camila when she was a minor.

Each of Raniere’s co-defendants previously pleaded guilty.  On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy.  On March 25, 2019, Lauren Salzman, a first-line master over slaves in DOS, pleaded guilty to racketeering and racketeering conspiracy.  On April 8, 2019, Allison Mack, a first-line master, pleaded guilty to racketeering and racketeering conspiracy.  On April 19, 2019, Clare Bronfman, a high-ranking member of Nxivm’s Executive Board, pleaded guilty to conspiracy to conceal and harbor illegal aliens for financial gain, and fraudulent use of identification documents, and Kathy Russell, Nxivm’s bookkeeper, pleaded guilty to visa fraud.  They are awaiting sentencing.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Moira Kim Penza, Tanya Hajjar, Mark J. Lesko and Kevin M. Trowel are in charge of the prosecution.  Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.

The Defendant:

KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age:  58
Waterford, New York

The Defendants Who Previously Pleaded Guilty:

CLARE BRONFMAN
Age:  40
Clifton Park, New York

ALLISON MACK
Age:  36
Brooklyn, New York

KATHY RUSSELL
Age:  61
Clifton Park, New York

LAUREN SALZMAN
Age:  43
Clifton Park, New York

NANCY SALZMAN (also known as “Prefect”)
Age:  65
Clifton Park, New York

E.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)

Topic(s):
Human Trafficking
Violent Crime
Contact:
John Marzulli Tyler Daniels United States Attorney’s Office (718) 254-6323

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.

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  • What is happening in the old NXIVM Village?

    Allison’s Neighbors Still Up In Arms Despite Mack’s Forfeiture Of Sex Cult Homes
    New York residents can’t believe cult operated ‘under our noses,’ a source tells Radar.
    June 18, 2019 @ 14:24PM

    Allison Mack ’s former upstate New York neighbors are still up in arms about her alleged sex crimes amid the recent forfeitures of her NXIVM homes, sources exclusively revealed to RadarOnline.com.

    Court records obtained by Radar showed that Mack had to forfeit the rights to multiple properties in Halfmoon and Clifton Park, New York that she once owned and/or lived in. The ruling came weeks after she pleaded guilty to two counts of racketeering in the horrific sex cult case.

    One neighbor who remembers witnessing Mack gallivanting around her Halfmoon, New York neighborhood with cult leader Keith Raniere dished to Radar that despite Mack’s recent forfeitures, neighbors don’t want her around ever again.

    “I think it’s a good thing but it’s still going to take us a little bit for the fear to wear off,” a neighbor told Radar.

    Some neighbors are convinced that the many young females in the neighborhood are connected to NXIVM.

    “We hear it is still going on. Keith may be gone, but there are talks it is here again,” the neighbor said. “The girls are not even friendly at all! They walk around with their heads down. They don’t want to talk or say hi.”

    https://radaronline.com/exclusives/2019/06/allison-mack-nxivm-sex-cult-neighbors-angry-amid-home-forfeiture/

    • Shadowstate,

      Worrying news!!!! Seriously worrying.

      Shadowstate thanks for ruining my Friday evening(kidding).

      Imagine living in the same neighborhood as large cult.

      I wonder if Nxivm property values in the neighborhood. What do think?

  • Now it’s time for the authorities to follow up with those still hiding in the Clifton Park area.
    There are many more who continue to victimize
    What about Christine Collins and her “friends”.

  • Yes. Now that Keith is out of the way hopefully for life, the focus needs to be on Clare, Allison, et al.

    Is Allison, Clare and others still on house arrest with ankle monitors? I am hoping enough dirt come out at the trial about Allison that will get her many many years.

    My take on Allison, with her being in show biz for so long, that she loathes women more beautiful than her. I bet she hates the “plain girl next door” persona that she has. Her face and body are sub par with many other women in Hollywood. And while Keith was looking for beautiful skinny girls, Allison would look at her cankles and realize she’ll never look that good. So she punished them. While she was touting women empowerment and saying she was helping women to overcome things and be stronger, she was secretly delighting in being punitive and cruel to “get back at them”. She is vile. As much as Keith is vile. She needs a very long sentence. I hope the judge can see past her smile and see the wretched person she is. She is more of a victimizer than she is a victim. She was plotting new forms of punishment that I’m sure even surprised Keith. “Wow Allison, I wish i would have thought of that!” Give her AT LEAST 20 years. I also believe Clare should rot for at least 20 as well.

    • “I am hoping enough dirt come out at the trial about Allison that will get her many many years.”

      Because KAR, and not Allison, was on trial, can any testimony affect her plea or sentence?

      Assuming nothing in the trial has shown her as lying to the Feds for her plea…how can she be harmed further, without having a chance to defend herself at trial?

      • It depends on the deal Mack made with the DOJ. If her plea included a provision that she would not be prosecuted for any other crimes, whether known or unknown, she’s in the clear. If her plea is like Bronfman’s, she’s potentially in very big trouble.

    • “My take on Allison, with her being in show biz for so long, that she loathes women more beautiful than her. I bet she hates the “plain girl next door” persona that she has. Her face and body are sub par with many other women in Hollywood. And while Keith was looking for beautiful skinny girls, Allison would look at her cankles and realize she’ll never look that good. So she punished them. While she was touting women empowerment and saying she was helping women to overcome things and be stronger, she was secretly delighting in being punitive and cruel to “get back at them”. She is vile. ”

      A very good take on the jealousies and rivalries among the NXIVM women.
      The major flaw of polygamy is that the women become very jealous of each other.
      They are all vying for body time with the one man in the family.
      And Raniere was too dumb to realize that.

      In reviewing past FrankReport stories I came across this gem:

      “It appears she (Nicki Clyne) had sex with Vanguard before Allison Mack did. Allison is very jealous of any of the other women. She enjoys the power that goes with being the head of DOS, but it gets to her that he is fucking all the other women. Nicki is no exception.”
      https://frankreport.com/2017/10/10/dos-diet-creates-angular-look-like-nicki-clyne/

      So Allison had to be first among equals.
      The Big Woman on Campus.
      The Queen of NXIVM.
      The Mean Girl.
      Allison had to have first dibs on the Vanguard.

      No matter how hard the women tried to be sister-wives there was always that underlying jealousy.
      And that jealousy drove Allison Mack to be especially brutal, cruel and sadistic.

  • Frank,

    I enjoyed your scathing critique of the NDNY. The NDNY more than deserves the rebuke.

    Hopefully those at the helm that ignored Nxivm and the cries for help will face some level of discipline.

    • Niceguy – I echo your comment that the NDNY deserve this rebuke and yes there were those in authority who ignored NXIVM and their victims. How many others aided and abetted this criminal enterprise? That swamp really needs draining.

  • its wonderful to have the transcript but the true effect is in the visual watch for Moira….she’s fearless….you can just feel it exuding and she’s showing intentions of blazin thru the next cases….again, kudos. job well done swimming upstream in the swamp that is n{xivm} y s.

      • Awesome! Thank you for all you do! I can only hope Clare will pay for what she’s done/have more charges brought against her.

      • Now that Raniere has been prepped, dipped in egg muck and breaded, the northern New York legalized gladiators could be more than ready to arrive late to the scene again. Come on. Try not to be such sorry contributors. The Brooklyn court handled a huge pile of evidence and testimony already.

        If Raniere is really, permanently out of circulation, his sorority of co-defendants still waits in the wings for additional charges. Many of their criminal actions, like Raniere’s, have been devious, cruel and cynically inhumane, as in oh-so above-the-law. The situation is ripe, and the Brooklyn prosecution team even sounds prepared to shift venues and to keep going. This in itself is a windfall.

        Bronfman sits at home, having designed her own cement shoes. Allison Mack is ready for her close-up. Lauren Salzman still can’t believe it’s not real butter. It’s almost summertime. The living is easy, and the legal waters are running deep. Don’t stop now.

        Kindly whip out the justice so we can relax on our palanquins and watch. Maybe feature Clare Bronfman first. She doesn’t even know how trite she is as a poor little rich behemoth, self-starving and disaffected She may perform the awkward devotional dance of a prune-faced frigid one. Right there in the Albany Coliseum, to satisfy (most of) the people.

        Ah, La Bronfman. The poor horse’s ass & how it sucks only to be appreciated for one’s money. Clare Bronfman got carried away right into identity theft as a bitter and self-indulgent tragedienne, and now she’s all in disarray. She lost track of herself. Whoopsie. How plebeian. It just isn’t done. This is one of those occasions when even a vegetarian might enjoy holding a steak knife.

        • i did have a thought that perhaps due to the COMPROMISED nature of NDNY {like a fish stinks from the top}? edny had to persue this but some ndny quietly helped who are disgusted in the ranks

          ergo ty was in order to those folks because they really put themselves on the line at great risk so that justice would FINALLY and new yorkers everywhere FINALLY be served ….

          this is the start of something BIG {KA BOOM}

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.

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