One of the office buildings to be seized by the U.S. government

Nxivm Was Never Successful – as a Business

By Bangkok

Some people claim that the Executive Success Programs [ESP] component of NXIVM was ‘good and successful’ before the DOS scandal broke?

Let’s examine the facts. 

To be ‘successful’, a company needs to be able to stand on its OWN TWO FEET without needing a constant infusion of capital from outside sources — such as ultra wealthy benefactors who are pleased to throw away millions of their PERSONAL fortune on behalf of ESP/NXIVM.

ESP was never 100% independent from its rich NXIVM benefactors.

MK10ART’s painting of Clare and Sara Bronfman, the financial enablers of Keith Alan Raniere.

Nor was ESP 100% independent from its teams of law firms that required a constant infusion of capital just to pay those huge expenses.

ESP did not clear enough revenue to pay those expenses from its normal business operations of selling classes.

Just because a few ‘NXIVM centers’ could pay their local rent bills does NOT mean that ESP (as a whole) was standing on its own two feet —- since ‘local centers’ are not responsible for covering lawsuit fees and other corporate headquarter costs, personnel costs, etc.

What else?

Local NXIVM/ESP ‘centers’ were allegedly not reporting and paying all of their taxes on every dollar of income that students paid.

ESP/NXIVM was allegedly using much of this ‘money/cash’ to create phony scholarships (and other scams) to avoid paying taxes — which is NOT the definition of a successful company that can stand on its own two feet.

What else?

When Keith illegally used Pam Cafritz’s credit cards to pay for various expenses (after she was dead), do you honestly think that ESP paid off those credit cards from normal business operations?

Nope.

MK10ART’s painting of Pam Cafritz, drinking a milky white substance that Keith concocted for her to cure her cancer.

According to Frank’s reporting, those credit cards were paid off by stealing the money from Pam Cafritz’s $8 million bank account (after she was dead) which contained her PERSONAL inheritance from her own rich parents.

Does that sound like a successful enterprise that was standing on its own two feet?

BTW: It’s perfectly normal for successful firms to get a ‘temporary loan’ from the bank which they must pay back. However, ESP/NXIVM was not doing that. They weren’t paying back anything, just bleeding more and more money over time.

As for the NXIVM centers in Mexico owned by the Boones, I seriously doubt that they are currently raking in dollars and overflowing with money.

Just because they haven’t ‘closed’ yet (and can pay their local rent bills) doesn’t mean they are making millions.

Their current students may remain for a while — but there’s too much negative publicity to gain LOTS of new students, even in Mexico.

If anybody here wishes to prove me wrong, then show us their current income and expenses along with their Mexican tax returns. Let’s see real documents, not just worthless speculation.

Now kindly eat shit.

I bid you a nice day.

 

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  • Frank, when are You going to write about Laura Junco???

    Or did you made some sort of deal with her powerful media Tycoon father to not write about her???

  • Bangkok,

    Nutjob is in great despair at your absence……

    And poor Frank is inconsolable. Frank is so despondent he can’t even watch his beloved Yankees in the playoffs…… he just weeps…

  • I hope that one day we’ll hear from a NXIVM insider who knows about the finances, and get a better idea of just what was going on.

    My rough guess would be that they had quite a bit of money coming in during the early days, before the 2003 Forbes expose’ and then the Times Union Series, when their courses were a new and popular thing, and they were not so obviously pegged as a cult. But they could still have been profitable later, if they followed Scientology’s pattern of figuring out how to squeeze increasing amounts of money out of a decreasing number of people.

    Maybe NXIVM was at least basically solvent later, except for the lawsuits and gambling losses – both essentially Raniere’s personal predilections, that the Bronfmans ended up covering.

    And then there are questions as to how much they relied on tax dodges, and underpaid or unpaid labor.

    We won’t know until or unless we get better information.

    • He promised he wouldn’t post until the spring. Remaining consistent with coming from “Parts Unknown” and his refusal to disclose his interest in NXIVM, the little dipshit didn’t say why he’s unavailable until the spring.

    • He was supposed to be either hibernating for the winter like a bear or in Juvie Detention for his truly juevenille stalking, etc. activities much akin to those of my ex-husband Jeff Apple who had a genuine tracking device on our son’s van. But I guess what I was told about the allegedly on-going TO police investigation hasn’t caught up with Bangor yet.

  • Since Nicki Clyne and her girlfriend are now associated with a bakery, they can raise funds by a good old fashioned bake sale.
    Whip up some cupcakes and pies, and set up a table to raise money to buy new cauterizing pens.
    And cut back expenses a little bit.
    Instead of ten-day birthday parties to honor the Vanguard, cut it back to nine-day birthday parties.
    And no more 10,000 dollar per week Villas in Puerto Vallarta.
    Things are tough all over, Ladies!

  • Welcome back, Bangcock. Winter went by fast. How was juvie? Can you share a PO Box for us all to send you our paystubs and Mexican tax returns?

    (Please let this be an article Frank has been sitting on and the dreaded return of Bangcock is not upon us)

    • I have been sitting on this article for a time. I like all the rest of the readers at Frank Report are waiting for Bangkok’s return.

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.

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