Raniere Trying to Get Nxivm Back – Government Fights Back

The "Corporate Books" for several of the NXIVM-related corporations.

For those who think the Nxivm teachings are good, there may be good news.

Your Vanguard is fighting to stop the government from seizing the company that owns the Nxivm teachings.

Keith Alan Raniere, who devised the teachings, [some say he stole much of it from others] has made a motion to stop the government from seizing First Principles Inc..

First Principles controls the intellectual property of Nxivm Corporation, the executive training company for which Raniere was the
conceptual founder. Specifically, it owns the Rational Inquiry “technology” which is the basis of Nxivm classes.

Nancy Salzman is the present legal owner of First Principles Inc..  Salzman pleaded guilty to racketeering conspiracy.

Based on the conviction of Salzman for racketeering conspiracy, the government intends to seize First Principles and have gotten Salzman to consent to sign over her interest in First Principles and other assets.

She has consented to the forfeiture of:

  • Cash [about $520,000] found at her house on March 27, 2018 at 3 Oregon Trail, Waterford, New York.
  • Real property located at 8 Hale Drive, Halfmoon, New York. [Raniere’s sex lair was in her name.]
  • 455 New Karner Road, Albany, [the headquarters for Nxivm – purchased with Bronfman money]
  • 457 New Karner Road, Albany, New York and 447 New Karner Road [adjoining properties]
  • A Steinway grand piano located at her home at 3 Oregon Trail, Clifton Park, New York [Raniere used to come over and tinkle the ivories  when he visited Nancy at her home.]
  • All right, title and interest in First Principles Inc., and all assets’ rights thereof, including but not limited to bank accounts and intellectual property rights.


Keith Raniere’s Steinway grand piano will be lost to the feds.

Raniere, who was convicted at trial of racketeering and racketeering conspiracy, among other charges, is objecting to the last item. He claims he owns 10 percent of First Principles – and, from his prison cell, while awaiting sentencing in January, he is maintaining that, because he has a 10 percent stake in the company, the government cannot seize First Principles Inc..

Judge Nicholas G. Garaufis, who was Raniere’s trial judge, and will be his sentencing judge, will make the final decision on whether the government can take ownership of First Principles [and hence Nxivm] or whether Raniere can stop the forfeiture.

Why First Principles Is Being Forfeited – Unless Raniere Stops It

According to law, a defendant convicted of racketeering or racketeering conspiracy must forfeit any asset that afforded “a source of influence over any [criminal] enterprise which the person has established, operated, controlled, conducted or participated in the conduct of racketeering and any property constituting, or derived from, any proceeds which the person obtained, directly or indirectly, from racketeering activity.”

The Nxivm tech was at the heart of the criminal enterprise.

The government argues that:

  • First Principles afforded a source of influence over the RICO enterprise.
  • First Principles owned the Nxivm “tech” or ideology that permeated Nxivm and its affiliates’ curricula and culminated in the creation of DOS.
  • The Nxivm education model and its associated “stripe-path” supported the RICO enterprise by isolating Nxivm community members from external support systems, “making them dependent on the [RICO] Enterprise for their financial well-being and legal status in the United States,” and encouraging them to take expensive Nxivm courses.
  • Nxivm’s philosophy included the mantra, “There are no ultimate victims; therefore I will not choose to be a victim.” [At trial, DOS slave Sylvie testified that repetition of the “there are no ultimate victims” mantra, “hundreds and hundreds and hundreds of times” made it difficult for her to recognize that she was victimized.
  • This educational model made the victims in this case more vulnerable to control by the RICO enterprise and laid the philosophical groundwork for DOS.
  • First Principles, in turn, filed patents generated by Raniere for his “Rational Inquiry” method (which was not ultimately approved for a U.S. patent), the sash system used by Nxivm and its affiliates, a patent to rehabilitate a  “Luciferian,” and other so-called inventions.
  • The existence of these patents was cited to Nxivm community members as evidence that Raniere was a highly intelligent person. [Mark Vicente testified at trial that he promoted the Rational Inquiry method by saying it was “patented in the Patent Office under artificial intelligence because nobody knows what to do with it it’s so advanced because that’s what I was led to believe.” Dos slave Jaye testified to her understanding that Raniere “has thousands of patents and starts all these businesses”.
  • The promotion of Raniere was a principal purpose of the RICO enterprise and exalting his teachings and ideology were among the enterprise’s means and methods.

In sum, the government argues, First Principles “further[ed] the affairs of the enterprise” by owning and licensing the “tech” that pervaded Nxivm’s philosophy and made its victims more vulnerable to abuse, and by obtaining patents that enhanced Raniere’s reputation as a highly intelligent, business-savvy and ethical person.

Said to be the smartest man in the world. Who said it? you ask. Why, he did it himself.

Is There Proof of Raniere’s Claim?

At the hearing, Raniere must establish standing by pleading a legal interest in the corporation. He bears the burden of proof by a preponderance of the evidence.

Raniere claims to have an “agreement” whereby he owns 10% of First Principles which in turn gives him a legal interest on the proceeds, patents, and the ethical and psychological tests.

The challenge for Raniere, as the prosecution argues is, in his petition for the hearing, he does not state when this “agreement” was entered into or became effective.  Raniere, the government argues, fails to adequately allege, “the time and circumstances of the petitioner’s acquisition of the right, title, or interest in the property [First Principles].”

Raniere claims he can prove it at a hearing and can show his ownership interest in First Principles was “both pre-existing and acquired after” the criminal conduct for which he was convicted – which, if true, might give him the right to keep his 10 percent share of First Principles.

However, Raniere may not have a written agreement.

It would appear that the agreement to pay him 10 percent was never authorized by a corporate resolution or recorded in a corporate ledger.  [He would have included these in his petition if they existed – or at least alluded to their existence.]

It is unclear if the corporation ever issued 10% of the corporation’s shares to Raniere in his own name – but it seems unlikely [For again he would have mentioned this in his petition].

In fact, it is doubtful, knowing Raniere’s style, that anything in writing exists.

In fact, just the opposite is likely to be true.

The entire argument about the agreement may be based on Raniere’s good word alone, and perhaps on the testimony of Nancy Salzman – confirming it [or not].

It is also doubtful that Raniere can show that 10 percent was ever paid to him by check or recorded on his income tax returns or in the bookkeeping records of First Principles. {Perhaps Kathy Russell can testify about that.]

When he was arrested, Raniere claimed to Pretrial Services in a sworn affidavit that he had no income and no assets. He never mentioned a 10 percent ownership of First Principles.

That may come back to bite the world’s smartest man right in the ass.


MK10ART’s beautiful painting of Keith Alan Raniere in a joyful setting.


About the author

Frank Parlato


Click here to post a comment

Please leave a comment: Your opinion is important to us! (Email & username are optional. To leave a name, click on the email icon)

  • The so-called ‘tech’ would not pass a basic plagiarism test, if admitted as a doctorate say, so I propose it gets sent to an MIT or HARVARD or.. Humanities or perhaps Liberal Studies prof. for marking – lets see how clever Nan and even cleverer KAR, really measure up.

    Oh that’s right.. it’s already had a scholarly assessment..


    And its a pile of sh*t.

    There’s a surprise.

  • Does the DOJ even have to sell NXIVM’S so called technology?

    They don’t put drugs back on the street. They dont put weapons of mass destruction back on the street. Why would they put something that has been known to be so destructive onto the hands of someone like Sara or Clare Bronfman? The Mexicans.

    Burn that shit and let the world be done with it.

    • There’s no easy way for the government to assess that the “technology” is inherently dangerous or illegal, rather than the problem laying with the way it was applied or even just with the organization that happened to be using it. Drugs and WMD are clear cut cases, because they are incontrovertibly illegal to possess.

      The government is tasked with recovering money for the taxpayers, when they can. I’ve even seen them turn around and resell forged art and antiques seized in fraud cases; it’s very hard for officials to make a determination that they can go ahead and destroy something that isn’t necessarily illegal to possess, particularly since such judgment calls are subject to public scrutiny and to being second-guessed and criticized.

      Also, it occurs to me that the conspiracy-theory-minded NXIVM loyalists who already believe that Raniere is being railroaded, would see the destruction of the “tech” as further proof that the government was out to get them. And come to think of it, they would probably make up things to believe such as that their valuable “tech” was not really being destroyed, just secretly being kept for use by the government in something like MKUltra part II.

      I don’t know that the materials themselves are necessarily harmful, outside an environment run by people who also know how to manipulate with NLP and hypnosis, or run a MLM type pyramid scheme – and those key people, including the somewhat charismatic leaders who members followed, are going to be cooling their heels in prison for a while.

  • I have the perfect candidate to be the New Vanguard of NXIVM.
    Hunter Biden, son of former Vice President Joe Biden.

    Hunter’s brother died of cancer and almost immediately Hunter leaves his own wife and takes up with his widowed sister in law.
    That was a few years ago.
    Now a woman in Arkansas has filed a paternity test against Hunter Biden.
    The baby was born earlier this year.
    Let’s hope the baby’s name is not Thor Biden.
    And more recently Hunter Biden married a Yoga Instructor after a ten day whirlwind romance.

    Hunter Biden has a long history of craziness.
    When his dad Joe was VP Hunter leveraged his influence to get an officer’s commission in the US Navy Reserve only after failing a drug test an.d registering positive for cocaine use.

    And the Democrats claim that President Trump is wrong for wanting to investigate the corrupt Joe and Hunter Biden!

    “Biden’s son discharged from Navy after testing positive for cocaine”

  • Is it wise to even want to claim ownership of this so called tech? If he actually won this, which is doubtful, could he then be held liable in future civil or criminal cases involving NXIVM?

      • Toni Natalie might want it. She’s the queen of comp you know. Maybe the government will give it to her because she so pretty.

  • Methinks the smartest smart ass on the planet has placed himself in a conundrum. Having run afoul of the SEC, IRS and several states Attorneys General – including a major judgment for restitution and damages (which was never satisfied) — Raniere claimed to live like a pauper – actually claiming no direct compensation and owning little or nothing (on paper and govt records) — yet virtually rolling in all the Bronfman cash he could ever want, Also would explain why he took only 10% from First Principles / ESP cash – lest he appear to make too much money.

    AS Frank P said, and my son (an attorney) agrees — the govt likely CAN seize First Principles if they can prove the property was used in the commission of a felony — which appears to be fairly easy to do here.

    Very predictable and understandable why Raniere is fighting for his 10%. Access to large sums of cash can make a long term prison time far more bearable. Reminds you of the movie “Goodfellas” — where Joe Peccei and gang members have a large exclusive area in their prison and pay the guards to shut up and look away. Let me know how it does happen.

  • “Judge Nicholas G. Garaufis, who was Raniere’s trial judge, and will be his sentencing judge, will make the final decision on whether the government can take ownership”

    Judge Garaufis has little love for Keith Raniere. Or his lawyers. In fact Garaufis blew up at their cross-examination tactics in his courtroom. He chided Raniere for his loud and disrespectful conversation in his court. He appeared amused at testimony as to Mr. Raniere’s erectile disfunction. The judge sat on the bench listening to witnesses describe Ranier’s repeated and habitual abusive treatment of women as well as audio evidence of Raniere plotting branding sessions. I suspect Judge Garaufis is heartily sick of Keith Raniere and his frivolous legal tactics. Which border on disrespect.

    Judge Garaufis does not strike me as a man likely to tolerate disrespect or frivolous claims made in his court. He strikes me as a man who, though he maintains a thoroughly professional demeanor of cold objectivity, loathes the very guts of the clownish, cowardly, dishonorable Keith Raniere. He will dismiss Raniere’s motion out of hand. And then, having been thoroughly annoyed by Raniere’s further wasting the court’s valuable time, he will pronounce sentence on the man.

    Way to go, Keith. Annoy the judge who is considering how many years you get in prison.

  • NXIVM was the education program – and Frist Principles was the owner of the so-called technology that was leased to NXIVM.
    Raniere is fighting for his so-called technology.

    All the DOJ needs to do is go back and check the paperwork when Salzman and Raniere first applied for their patents for Rational Inquiry. It was well before their criminal enterprise even started. Well before Nancy Salzman knew what she had gotten herself into and well before Raniere had his way with Salzman and her daughters.

    He never came into ownership of any percentage AFTER his conviction. He believes everyone is a fool. Just like he believed he would be found NOT GUILTY of all charges. What a total loser.

    Why only 10% and not 50%? Most likely because what now is NXIVM started out mostly as Salzman’s learned “technology” of NLP and hypnosis. Salzman was also taking all the risk by putting the company in her name and hiding Raniere’s interest due to his shut down by the NY State Attorney General for running an illegal Ponzi scheme.

    Raniere never had a contract, just like he didn’t with Toni Natalie when they together to hide his patent that he later sued AT&T and Microsoft over and spent months trying to convince the court he could prove he owned.

    Let’s not forget that Natalie tried to extract $1 million (out of Clare Bronfman) by attempting to sell the patent back to Raniere while he was in his court battle with Mircosoft and AT&T.

    Raniere’s biggest undoing came about because he wanted to hide his assets from the state of NY because he owed them money and dodged paying his taxes.

    Now he wants to come back and claim ownership after already claiming he didn’t own anything for years and never paid taxes.
    He reported to the media “things just appear” so he didn’t need money. He pretended to his followers he didn’t need possessions because he was not attached to anything in the outside world.

    His disintegrations and pride issues are now showing. Take notice of those who still believe in your Master. He is not fighting for justice, he is fighting for what most believe is CRAP

    Now that the DOJ wants to take his binky away, he is having a tantrum.

    Crybaby Raniere is at it again.

  • Second verse same as the first. He tried this with AT&T and Microsoft when he was hiding his assets under Toni Natalie’s name. He turned around and did the same thing with Nancy Salzman.
    When you play hide you assets guess karma comes back to bite you in the ass.
    Wonder if he’s playing hide his assets at the MDC? Toni Natalie says he ready go after five minutes and is an all night kind of lover.

  • Even Nancy Slutsman is not foolish enough to tangle with the Feds on a property seizure that includes what was it 40 library floors of terabyte data on International VIP’s and pawns alike NX spied on and, quite possibly, pics of Kristin Kreuk in the buff.

    Whaddya say we keep a running tab on what frivolous expenditures Clare & Sara are racking up in this?

    1. Aryan pureblood skinhead prison protection for Keith = $200,000 per annum

    2. Continued surveillance and harassment of Keith Raniere enemies not including Steve Coffey’s and Dennis Burke’s fees or FR comment trolls = $5M

    3. Stoopid Lawsuit against Feds #1 — not including Gregaros fees = $2M

    4. Payoffs to silence witnesses and bribe govt. officials not including child support and campaign contributions = $50M

    5. Media spin doctors = $6M

    6. Stoopid lawsuit against Frank Parlato not including attorney fees = $3M

    7. Translation of “Rational Inquiry Tech” from Word Salad to French = $7M not including psyche medical bills for translators.

    8. ?

  • Maybe the Bronfman sisters will front Nicki Clyne the money to buy this “technology.”
    That should cost the Bronfmans about two dollars and ninety-eight cents.

    And the paper from the modules and lesson books should be handy for toilet paper if one runs out.

  • Does not sound at all easy for him to prove in that case. Every month I get someone in this kind of situation – nothing written down, share register did not record them, not even a written contract or heads of agreement. if he owned 10% then as the article says why did he not disclose it earlier.

    There may be a different argument he could use. Certainly in the UK if you are not an employee and you personally create works but never assign or transfer them to your company your company just gets a default right to use them not ownership. SO if he never puts anything in writing that might even work to his gain here – as he might be able to argue he never assigned the rights to the company in the first place and it jus has a temporary licence to use and exploit them which he can terminate at will.

    • In one of Nancy’s depositions, she said that Keith gave her the patents, as long as she used them in a way he agreed with, and then, at some point, he would get a percentage of the gross profits. So, he has some sort of established agreement on the record. Whether that meets the legal standards or not is beyond my purview.

    • Jane, thanks to you and Amateur Cult Researcher in their earlier reply. It seems that perhaps Raniere’s claim can’t be dismissed out of hand as spurious.

      A search turns up references to NXIVM claiming to license the “Rational Inquiry Method” from Raniere, for which he appears to hold the patent, though having assigned it to First Principles:


      There would presumably then exist some formal assignment document.

      Could the judge just order the forfeiture of any of such intellectual property rights that Raniere might hold, as part of his sentence?

      Regardless, so long as the IP rights are tied up in legal wrangling or government seizure, no one dares use the materials, at least in the US and not publicly – NXIVM’s reputation for scorched-earth legal tactics will have helped ensure that. And that leaves the remnants of the group unable to do anything more than try to hold on to a dwindling number of diehards, without any programs to offer and no vehicle for recruiting. Even an attempt to create an offshoot or derivative of NXIVM would risk legal trouble down the line, depending on how the IP ownership issue shakes out.

  • Whether Raniere owns 10% of NXIVM is debatable, and I lean towards he doesn’t, but he will have plenty of time to reconstruct NXIVM from prison. I don’t think the federal government can claim any IPR (Intellectual Property Rights) over something they didn’t create, and just because Salzman was willing to give up any claim to the IPR doesn’t mean Raniere can’t reconstruct it, especially since he evidently helped develop it. Except as an exercise to keep him busy in prison, I don’t see any practical reason for him reconstructing it, as he will be able to apply it only to his fellow prisoners for at least a couple of decades, and that assumes they don’t “Epstein” him for being a pain in the a$$.

  • Hey our Vanguard might have realized he is going to need money on his prison books for the next couple decades and 10% of a million Ponzi scheme will buy him a lot of extras.

  • VanFraud is the dumbest “smartest” man in the world.

    Where is his name on any legal corporate document?


  • NXIVM = 50% Scientology + 50% NLP. The only thing that was original to Raniere was DOS and its pernicious doctrines.

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.

IMDb — Frank Parlato

Contact Frank with tips or for help.
Phone / Text: (305) 783-7083
Email: frankparlato@gmail.com