The courtroom in which sentences will be meted out

Judge Rules NXIVM No Longer Exists! – EDNY Signals It’s Not Done With Nxivm Leaders!

On August 26, 2019, the U.S. District Court for the District of New Jersey issued its ruling in the long-standing legal battle between NXIVM and Interfor, Inc.

The primary legal issue involved in the case was whether NXIVM had to indemnify Interfor for the expenses it had incurred in conjunction with NXIVM’s lawsuit against Rick Ross.

In a lengthy opinion, U.S. District Court Judge Katharine S. Hayden reviewed the entire 15-year history between NXIVM and Interfor – before concluding that Interfor is entitled to recover $1,369,157.51 plus its attorney fees for the period from May 31, 2017 onward.

Judge Katherine S. Hayden

But, along the way, Judge Hayden made a number of interesting findings-of-fact and rulings – some of which could have major impact on other legal matters.

First and foremost, she ruled that “NXIVM is no longer in operation” – a ruling that we’ll explore more fully in the second half of this post.

“NXIVM is no longer in operation”

Some of Judge Hayden’s other noteworthy findings-of-fact and rulings are as follows:

– The overall direction and philosophy of NXIVM were guided by its “conceptual founder”, Keith Raniere.

MK10ART– Keith Alan Raniere.

– Nancy Salzman owned NXIVM, served as its president, and oversaw the development of its curriculum.

Nancy Salzman

– Kristin Keeffe served as NXIVM’s “Legal Liaison” – and in that role, she facilitated communication between NXIVM and its attorneys as well as among NXIVM’s attorneys.

– Interfor would only provide services to NXIVM through counsel – which is why it was my law firm that actually hired Interfor.

– Per the applicable retainer agreement, Kristin Keeffe was designated as NXIVM’s representative – which meant that all communications between Interfor and NXIVM went through her rather than me (The only communications I was supposed to receive were Interfor’s monthly bills – which I promptly paid and then submitted to NXIVM for reimbursement ).

– Separate and apart from the retainer agreement between Interfor and my law firm, Interfor and NXIVM entered into an indemnity agreement which provided, among other things, that NXIVM would indemnify Interfor for any legal fees and related expenses in might incur in conjunction with its work for NXIVM.

– Interfor was initially tasked to investigate the disappearance of Kristin Snyder in Alaska.

– Soon thereafter, Interfor was also tasked to undertake an investigation of Rick Ross.

– Interfor attempted a “sting operation” on Rick Ross that had been designed collectively by Juval Aviv, Keith Raniere, Nancy Salzman, and Kristin Keeffe.

– NXIVM continued to use Interfor’s services until at least May 2005 (Since I had quit as a consultant to NXIVM in early January 2005, it is unclear whether Interfor was dealing directly with NXIVM or had arranged to be hired through another law firm).

– In February 2005, Keeffe authorized Interfor to do additional research on anyone who had been deprogrammed by Rick Ross – and on three members of the Sutton family (Maurice and Rochelle Sutton – and their daughter, Stephanie Franco).

– When Ross served a subpoena on Interfor to obtain copies of the documents and records it had obtained about him, NXIVM hired a law firm to represent Interfor (I had tipped off Ross about those documents and records – many of which appeared to me to have been obtained illegally).

Rick Alan Ross fought Keith Alan Raniere for more than a decade.

– Ross eventually filed a claim against NXIVM, Interfor, Raniere, Salzman, Aviv and Anna Moody (an attorney for Interfor), for intrusion.

– Interfor settled Ross claims against the company for $25,000 – and Ross dismissed his claims against Aviv and Moody.

– Initially, NXIVM paid the bills for the law firm it had hired to defend Interfor, Aviv and Moody (From September 2006 through April 2007, those bills totaled $165,619.18). But then, NXIVM stopped paying those bills – and told Interfor it was on its own.

After undertaking a detailed analysis of the applicable statutes and case law regarding the case, Judge Hayden then ruled that NXIVM has to pay $1,369,157.51 – plus the to-be-determined legal fees – to Interfor.

Which would be great news for Interfor were it not for the fact that NXIVM no longer exists – and likely had few, if any, unattached assets left before it ceased operations.

So, all in all, a pretty mundane and boring case – with an ironic ending – right?

But wait, there’s more.

Juval Aviv, president of Interfor, won a $1.3 million judgment against Nxivm – which is worthless since Nxivm no longer exists.

*****

The EDNY Seeks to Obtain Evidence That It Was Previously Denied

Yesterday, Tanya Hajjar, Mark J. Lesko, and Kevin Trowel filed a motion with Judge Nicholas G. Garaufis via which the EDNY is seeking a reversal of a prior ruling that prevented it from obtaining “certain documents from defendant Clare Bronfman’s email account (because they) were protected by attorney-client and work-product privileges asserted by Nxivm”.

Tanya Hajjar

Citing the New Jersey court’s ruling that “NXIVM is no longer in operation” – and quoting extensively from subsequent filings by some of NXIVM’s attorneys in which they allege that “Nxivm is no longer in operation and they are unable to contact any representative of Nxivm” – the EDNY attorneys are asking that they be provided with all of the previously denied evidence.

As is succinctly stated in the motion, “In light of Mr. Crockett’s and Mr. Tajima’s repeated sworn declarations that no corporate representative of Nxivm appears to exist because Nxivm is no longer in operation, Nxivm is defunct and may not assert attorney-client and work-product privileges”.

Given that the New Jersey federal court has already ruled that NXIVM no longer exists – and given that NXIVM’s former attorneys have made the same assertion – it is quite likely that Judge Garaufis will grant the EDNY’s motion (Seriously, which of the about-to-be-sentenced defendants wants to argue against the EDNY motion in front of Judge Garaufis?).

*****

Why Does the EDNY Want the Previously Denied Evidence?

The really interesting question is why the EDNY filed this motion.

Is it just because the EDNY attorneys were unhappy with the original ruling – and want to get a clarification on the record for future cases?

Is it because the EDNY attorneys are just nosy people, and, out of curiosity, want to see the documents that they were previously denied?

Is it because there’s not much going on in the EDNY these days – and this was just a make-work filing?

Or is it because the EDNY is not done investigating all of NXIVM’s illegal operations – and wants those emails from Clare Bronfman in order to see if they will support more charges against her and/or others who were involved in the NXIVM crime syndicate?

It is believed that many of the emails in question have to do with the various illegal schemes that NXIVM was using to get foreign students into the U.S. – and/or to keep them here after their visas ran out.

If that’s the case, then Clare Bear – and anyone else who was involved with those illegal immigration schemes – might have a little extra on their minds over the upcoming holiday season.

MK10ART’s Clare Bear Bronfman on the attack

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J.J. O'Hara

28 Comments

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  • J.J. O’Hara,

    Great News! Working for Ashcroft? You have had an interesting life to be sure. I am confident you enjoyed writing this article. I enjoyed reading it. Thanks!

      • Shadowstate,

        John Ashcroft definitely lacks a personality. John Ashcroft has one redeeming trait which is his backbone.

        Ashcroft showed off his backbone when as Attorney General he refused the request of President George W. Bush to extend the NSA domestic spying program.

        Bush’s administration had to go around Ashcroft. Ashcroft refused to sing-off on the request while he was in an intensive care unit at the hospital.

        This stand is the only positive thing I know of Ashcroft.

        • John and I had some major policy differences – and zero social interaction. But he backed me on some very controversial appointments – and on the re-structuring of the largest agency in the state. All in all, I had a great time working for him.

          • Joe,

            I greatly appreciate your tidbit of insight into John Ashcroft the man. I often wonder who these men of contemporary history actually are aside from the way the media portrays them, as well as the men like who help shape government.

            Thank you for taking the time to share!

        • “Ashcroft showed off his backbone when as Attorney General he refused the request of President George W. Bush to extend the NSA domestic spying program.” Nicguy

          If you read the documents released by Edward Snowden you will see that the NSA continued to spy on American citizens regardless of what Ashcroft did.

          In fact the NSA built the world’s largest Data Center in Utah with enough storage capacity to years years of data about every American including telephone calls, emails and Google searches.

          “TECHNOLOGY
          A Visit to the NSA’s Data Center in Utah
          Why would the intelligence agency put its largest surveillance storehouse in the middle of a desert?
          INGRID BURRINGTON
          https://www.theatlantic.com/technology/archive/2015/11/a-visit-to-the-nsas-data-center-in-utah/416691/

          Ashcroft sure did show the NSA didn’t he?

          • Shadowstate,

            I said he refused to go along with things.

            The NSA project was top secret.
            If you knew about the project’s existence, you had to you could not tell anything or face criminal charges. Democrat and Republican congressmen knew of the program, but could not come forward because they would be prosecuted.

            I did not say Ashcroft was a hero.

            He did refuse to carry out an order by the President of the United States.

        • “What do you expect from somebody from Chicago?” Scott Johnson

          What do you expect from someone from Chicago? The Bitter Truth.

          Regardless of what Niceguy says about Ashcroft, despite Ashcroft’s opposition to NSA spying on Americans, the NSA continues to spy on Americans and has built the world’s largest data center in the Utah desert to collect all of your phone calls, emails and Google searches.
          I guess John Ashcroft really showed the NSA, didn’t he?

          A Visit to the NSA’s Data Center in Utah
          Why would the intelligence agency put its largest surveillance storehouse in the middle of a desert?
          https://www.theatlantic.com/technology/archive/2015/11/a-visit-to-the-nsas-data-center-in-utah/416691/

          • At least Ashcroft can sing. I’ll bet you can’t, except like a little girl. People don’t stay in government forever. New people come in and change the direction. I would put a large surveillance storehouse in the middle of a desert for security purposes.

          • Shadowstate,

            Thank you for sharing the article. The Atlantic Monthly is cerebral literature.

            Shadowstate literally almos ten thousand Americans with the proper security clearances knew about the NASA program. Only one man came forward.

            It takes a certain type of person to flush his life down the toilet and spend it inside of a cage until they die; All done on the hope he can make a difference.

            The type person to come forward has to be Christ like or a little nuts. Snowden is a complicated man.

            Ashcroft is no hero, but he did not get on his knees and suck the proverbial c*ck.

            PS The article does not shed any light on anything new. It’s just literary philosophical journey of observations.

            Have a great night!

          • Shadowstate,

            RE NSA Desert Data Center:

            Why the desert? Real estate is cheaper in the desert….Also no hurricanes, no forest fires, no conspiracy buffs from Chicago snooping around, and most importantly no earthquakes.

            Why is the number one corporatete and personal private warehouse for archiving records and other things in the desert salt mines of Utah? (rhetorical question).

          • Shadowstate,

            Do you remember the time Scott thought Africa is a country? Or the time he thought South America is the state of Florida?

  • As far as I’m concerned Kristen Queef is a manipulating Bitch. She was loyal to her master for way too long. I look forward to Frank exposing her lies the way he exposes Natalie. I’m also willing to bet she’s been manipulating Frank from day one. The old saying keep your enemies close.

  • Me think Clear Bear is still active in her activities running the NXIVM underground railroad.

    Meeting with her ratpack in her apartment while paying one of her attorney’s to wear noise cancelling headphones in the kitchen. Clear Bears still plots how to keep NXIVM alive in Mexico for her Master.

    Clear Bears pays for Raniere’s protection, pays for his ability to communicate with the outside world and waits for the day for them to be reunited.

    Having her eggs frozen so she may have his aviator baby, someday, someday when she has ‘just done enough’ to heal her breech.

    • Clear Bear is plotting:

      I think you will find that Sara Bear is financing businesses in Brooklyn to keep NXIVM alive.
      On October 5, 2017 Nicki Clyne, writing as “Yolanda Cortez said,

      “Yolanda Cortez
      October 5, 2019 at 4:26 pm
      Sara is one of the most beautiful women in the world inside and outside.”

      I asked Nicki, aka Yolanda:

      “shadowstate1958
      October 5, 2019 at 5:33 pm
      So Yolanda, aka Nicki, is Sara helping fund NXIVM until the storm passes?
      Will Sara front Nicki’ some dough to help buy the NXIVM tech from under the Salzmans or will Nicki use some Mexican money for that?
      When Allison finally gets out of the clink will Sara help provide Ally with a do nothing job in the new NXIVM?
      Inquiring minds want to know.”

      Nicki responded as “Pea Onyu”
      “Pea Onyu
      October 6, 2019 at 1:54 am
      That’s none of your business Shadow. Stay out of things that don’t concern you”
      https://frankreport.com/2019/10/05/sara-bronfman-igtet-the-nxivm-criminal-who-got-away/

      I guess that’s a “Yes!”

  • “Is it because there’s not much going on in the EDNY these days – and this was just a make-work filing?”

    The EDNY is actually one of the busiest Federal Districts in the country.
    Not only is there the traditional Mob that has operated in New York for generations but Brooklyn is the capitol of the Russian Mob which is even more ruthless than the traditional Mob.
    Think of Al Capone on steroids and you have the Russian Mob.
    The Russian Mob is headed by Semion Mogilevich, whom the FBI regards as the most dangerous man in the world.

    Semion Mogilevich
    “Mogilevich is believed to direct a vast criminal empire and is described by the FBI as “the most dangerous mobster in the world.”
    ” He has been accused by the FBI of “weapons trafficking, contract murders, extortion, drug trafficking, and prostitution on an international scale.”
    https://en.wikipedia.org/wiki/Semion_Mogilevich

    Next to Semion Mogilevich Keith Raniere is a rank amateur.
    And yes the FBI believes that Mogilevich deals in stolen nuclear materials and has ties to international terrorist groups.
    You can find Mogilevich in Moscow under the protection of Russian Intelligence.

    On top of that the EDNY has two major international airports, JFK and LaGuardia.
    Both are entry points for illegal aliens and drug traffickers.

    If EDNY is continuing its investigation of NXIVM it’s not because it has nothing to do.

    NXIVM might not formally exist anymore but its minions are still active.
    As I have mentioned before several recent news stories in the Frank Report indicate that NXIVM’s activities now focus more on Brooklyn than Albany.

    Allison Mack operated her criminal activities out of the St. George Tower in Brooklyn, an apartment tower near the Brooklyn Bridge.
    And Mrs. Allison Mack, aka Nicki Clyne and several of her friends now live in Brooklyn.

    And criminal organizations need not formally incorporate to engage in massive criminal misconduct.
    There need not be a NXIVM Incorporated for there to be an ongoing NXIVM racket using shell companies and straw men and women as fronts to conceal what is actually transpiring.

  • Now Tony Baloney is going take credit for this too! No doubt she is already pitching her next book.

    ‘Tony Baloney rides with the Karate Queef!’ Includes recipes from Toni NataLIE’s one year of being Married to the Mob. And pizza recipes from Karate Queef Raniere too!

    • Thanks for the reporting on this. I think I’d noticed that ruling when searching for other things in the past couple of days, but hadn’t thought to dig into it.

      “Interfor would only provide services to NXIVM through counsel” – was that an attempt, such as Scientology is known for, to try to cloak the PIs’ work under attorney-client privilege? Even though “Kristin Keeffe was designated as NXIVM’s representative – which meant that all communications between Interfor and NXIVM went through her rather than me” acknowledges that NXIVM really was directing them behind the scenes?

      My understanding is that while NXIVM may no longer be doing business, they still exist as a corporation, and even as of last report continued to be represented by the politically-connected law firm of former (Bush administration) Attorney General John Ashcroft (Tajima has his own firm that Crockett is part of, so I’m not sure what their role is). I’d expect that we’ll see opposition to the EDNY motion coming from Bronfman somehow. thought it’s not clear what her grounds would be. And of course it’s interesting to see that the EDNY still has their eye on NXIVM and its conspirators.

      • “And of course it’s interesting to see that the EDNY still has their eye on NXIVM and its conspirators.”

        The key issue is what the NDNY plans to do since many of NXIVM’s crimes occurred in New York’s Capitol District.

      • Yes – Interfor stupidly believed that using an attorney as an intermediary was akin to having a Super Heroes’ protective shield. That’s not how attorney/client privilege works – especially not when, as I insisted, that all communications be directly between Kristin Keeffe and Interfor.

        And for an additional bit of irony, consider that I was part of Ashcroft’s cabinet during his first term as Governor of Missouri. To say that John did not like me would be a gross understatement.

        PS/I doubt we’ll see any opposition to the EDNY’s motion. As I said in the post, what defendant would be stupid enough to do that with the judge who will be determining their sentence in the next few weeks?

        • Scientology seems to have gotten away with using attorneys like that as cutouts for dealing with PIs. Did that strategy ever get overruled in a NXIVM case?

          I’d think Bronfman might have fears of new crimes coming to light, that could put her away for even longer, and that might then thus override her concerns about dealing with the judge. And it seems to me that might also be done through a cutout of sorts, such as having NXIVM’s corporate attorneys raise some sort of nominally third-party objection.

          It will be interesting to see how it plays out, indeed.

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.

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