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.
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.
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.
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?
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.