The US Attorney for the Eastern District of New York had to amend their forfeiture consent order. This is the same order that we wrote about concerning Nancy Salzman and Allison Mack and their consent to surrender their assets.
In Salzman’s case, she is giving up the $520,000 in cash the feds seized from shoes boxes and bags hidden in her house. [see Judge Orders Some of Nancy Salzman’s Assets Seized – But Actually Not All That Much]
Nancy also agreed to forfeit several properties she did not have a dime of her own money into – namely the headquarters of Nxivm at 455 -457 New Karner Rd.
For Mack, she agreed to surrender her house at 7 General’s Way [see Allison Mack’s Albany Home to Be Forfeited to Feds for Her Role in Sex Cult]
There is one slight change to things.
Alert legal experts at the DOJ realized that their seizure of First Principles Inc., a Delaware Corporation, meant nothing. It was originally believed that First Principles Inc. owned Nxivm. They were wrong.
The fact is that it was not First Principles Inc. that owned Nxivm, it was First Principles Incorporated, another Delaware corporation, with a strikingly similar sounding name.
This is slick Mr. Raniere – having two corporations that are nearly identical. Almost no one would know the difference.
Here is the request to amend the forfeiture from the DOJ.
Dear Judge Garaufis:
The government respectfully submits the enclosed Second Amended Consent Preliminary Order of Forfeiture to amend the description of an asset in the Amended Consent Preliminary Order of Forfeiture entered by the Court on July 15, 2019… in the above-captioned matter. Counsel for Nancy Salzman consents to the amendment.
The July 15, 2019 Order listed “First Principles Inc., a Delaware corporation, and all assets rights thereof, including but not limited to bank accounts and intellectual property rights.” … page 2, paragraph (ix)). Further review of the Delaware corporation database revealed that the correct name of the company is “First Principles Incorporated,” and that an unrelated entity was incorporated as “First Principles Inc.” To clearly identify the forfeited corporation, the enclosed Second Amended Preliminary Order of Forfeiture corrects the company name and includes two additional identifiers for the company in the asset description: the Federal Employer Identification Number … and Delaware File Number.
The government therefore respectfully requests that the Court enter the Second Amended Consent Preliminary Order of Forfeiture.
Thank you for Your Honor’s consideration of this submission.
Respectfully submitted,
RICHARD P. DONOGHUE
United States Attorney
By Karin Orenstein
Assistant U.S. Attorney
Nancy Salzman, by the way, has no problem consenting to surrender First Principles – whether it’s Inc. or Incorporated.
She is through with Nxivm, Raniere, and all his crap. She is just looking to get off with probation and is happy to be of service to the DOJ in any way she can.
The prosecution in the Nxivm case had in May 2018 revealed in a court filing that they were aware of ninety [90] companies or entities “affiliated in any way with Keith Raniere, his teachings, his purported ‘technology,’ his purported ‘tools’ or Allison Mack.”
Now there is 91.
Frank Report had previously identified 77 companies/entities – most of these on the government list back in 2017 and here is a story I published in 2015 about all the companies they had.
I offered this list to the US Attorney for the Western District of NY in 2015 but they were not interested in investigating Bronfman-Raniere. They needed Bronfman as their victim because they wanted to indict me.
Here is the list of companies the DOJ identified.
Some of these have wonderfully ironic names given the current circumstances.
- DOS (or “The Vow” or “The Sorority”)
- NXIVM CORPORATION DBA ESP;
- FIRST PRINCIPLES INCORPORATED;
- FIRST PRINCIPLES INC.
- JNESS, LLC;
- THE ETHICAL SCIENCE FOUNDATION,
- EXO-ESO
- THE SOURCE
- ULTIMA LLC
- AXIOLOGY, INC.
- BUYER’S ADVOCATE, INC.
- EQUIPT CORP.
- NXV PROPERTY MANAGEMENT CORPORATION (NX PMC)
- SUNSHINE PROPERTIES, INC.
- ELITE HOUSING CORP.
- ETHICAL VALUE EXCHANGE, LLC [Great name by the way for what Raniere offered.]
- WEB EQUIPMENT, LLC
- ELITE MARKETING PROFESSIONALS, INC.
- POIESIS, INC.
- RCG CORP LLC [a Rainbow company]
- RAINBOW CULTURAL GARDEN, LLC
- PRECISION DEVELOPMENT, LLC [This was the company I recovered for the ungrateful Bronfman sisters.]
- ETHICAL PRINCIPLES, LLC [Lots of good ethics in Nxivm]
- EXECUTIVE HOUSING & PROPERTIES, INC.
- MOVING PIXELS, INC.
- MY IMAGES, INC.
- NX APPAREL, INC. [Who knew they had a clothing line?]
- NX PROPERTY MANAGEMENT CORPORATION
- THE ART OF MOVEMENT, INC. [Raniere employed that art when he split for Mexico.]
- GENERAL SERVICE PAYMENTS, INC. {This name is similar to the General Services Administration of the Fed Gov.]
- GENIUSES, LLC; [My personal favorite. Note that “geniuses” are plural. Who was the other genius in Nxivm?]
- ONE ASIAN, LLC [This was Raniere’s company for recruiting Asian women.]
- WORLDWIDE NODES, LLC
- BUNDLED ELEMENTS, LLC
- SURE HOLDINGS, LLC
- PSC I, LLC
- E MALLARD WEB, CORP. [This was Clare’s company for websites.]
- ETHICAL MEDIA, LLC
- WORLDWIDE NETWORK, LLC
- CREW HOLDINGS, LLC
- EXECUTIVE SUCCESS PROGRAMS, INC. (NV) [The Nevada version]
- ETHOLUTIONS, INC [The solution was ethics.]
- DON’T BE DUMB, LLC [Never ever a better name.]
- PLUGGED-IN TECHNOLOGIES, LLC [This was Raniere’s company whereby he would have all his followers on shared cell and computer service which was to give him the ability to spy on them. It was never fully accomplished even though Clare reportedly spent some $20 million on it.]
- SOCIETY OF PROTECTORS, LLS [AKA the Society of Cuckolds, a group of weakling men who were being taught how to be strong by one of the weakest men in America. The men used to refer to Raniere as Alpha Dog and Big Dog].
- NXV TRUST
- ETHOLUTIONS, INC.
- PRINCIPLED PRODUCTS, INC. [Wonder what their products were – whips, cages, paddles?]
- NXIVM PROPERTIES, LLC
- FOWL HOLDINGS, LLC; [Was that misspelled – should be ‘Foul’?]
- 2430AUT1 TRUST
- BBFC TRUST
- EMF TRUST
- NX TRUST, INC.
- APPLIED PRINCIPLES
- THE ROOFING COMPANY
- SUCCESS PROGRAMS UNLIMITED, LLC
- LIFE LEARNING, INC. (NV) [Could that be changed from “Life Learning” to “Life Sentence”?]
- WORLD AUDIENCE PRODUCTIONS, INC.
- WOLRD AUDIENCE PRODUCTIONS, INC.
- ITS ENDEAVORS, INC.
- MALLARD WEB CORPORATION
- SWEET P’S, INC.
- 7 SEVEN, LC,
- FRANKLIN, LLC
- ACK KNOWLEDGE, LLC [ACK stands for Alex Betancourt, Clare Bronfman and Keith Raniere.]
- ALOUSCH, LLC
- COALITION OF ETHICISTS, LLC; [I bet that’s a powerful group]
- DEVELOPMENT TRAINERS, LLC
- ESSENCE INTERACTIVE, INC.
- ETHICAL HUMANITARIAN FOUNDATION
- EVENTS FOR HUMANITY, INC.
- ETHELETICS, LLC [This is a combination of athletics and ethics]
- HOUSE OF EQUUS, LLC
- IMPRESSIONATES, LLC
- OCCAM’S RAZOR, LLC
- OUR EVOLUTION, LLC
- RCG CORP LLC
- RCG KIDS INTERNATIONAL, LLC
- RETURN TO NATURE, LLC
- RHYTHMS OF INFLUENCE, LLC
- SPIRIT @ 19, INC.
- THE RANIERE INITIATIVE, LLC
- TRUTH, LLC [A great and simple name Truth LLC – founded by a very ethical and truthful lying savage criminal]
- VEINTE-SEIZ, LLC
- VILLAGE HALL LLC
- WISDOM SYSTEMS, LLC [This is one of the Bronfmans’ hair-brained companies. A lot of wisdom they have too.]
- WORLDWIDE NODES LLC
- ACK MANAGEMENT PTE LTD [This, I believe, is the management company for the Wakaya Island, Fiji, resort.]
- NXIVN MEXICO SA DE CV
- ACK WAKAYA HOLDINGS LLC [This is the company that owns the property in Fiji – abut 80 percent of Wakaya Island.]
Now, let us all applaud these wonderful names. Ninety-one companies and today all of them a bust except of course Don’t Be Dumb LLC. That one is alive and well. Just ask the fool who sits in his dank cell at the Metropolitan Detention Center.
Viva Executive Success!
Frank Parlato 
Janine Morrison 
J.J. O'Hara 
Richard Luthmann 
Marie White 
Paul Serran
Please leave a comment: Your opinion is important to us!
Is that true Frank? Are you dismissive of advice or opinions shared with you by females? Inclined to assign less value or seriousness to it?
I’d be inclined to think this assessment is incorrect. That you evaluate advice, opinion or information based on a person’s education, life experiences or relationship with the subject at hand.
Sadly in today’s climate everything and everyone gets labeled, assigned a designated identity and motivation.
Indeed, sometimes a cigar is just a cigar.
I don’t understand the context of the question.
It probably refers to Heidi’s comment at the bottom of this thread:
Heidi Hutchinson
March 5, 2020 at 1:10 pm
“Weak” is inappropriate language around Don Parlato, Anon. And, I can tell ya it’s a fact that Frank tends to do the opposite of what’s recommended, especially by a female and especially when feeling threatened. F’in Triple Taurus, Sicilian. What are ya gonna do?
What a strange question in reponse to this article.
In addition to having several companies with similar sounding names, Raniere also liked to incorporate companies with the exact same name in several different jurisdictions. Thus, for example, there are several companies named “NXIVM Corporation”: one in New York State, one in Delaware, one in Nevada, and one in Puerto Rico. Although the locations may be different, the same duplication is true with respect to Executive Success Programs, Inc.
Thank you, Joe, for everything you’ve done to try to stop NXIVM from harming others.
I know you’ve been tracking NX’s financial crimes and other schemes for decades and helped put together the evidence packet for the FBI and DOJ at grave sacrifice and risk to your own life and surety.
Everyone from the Bronfman’s to Frank to Neil Glazer — all the attorneys — to the DOJ owes you their gratitude for the reliable information you’ve provided.
Can you please tell us if investigators are consulting with you and/or acting accordingly on the information you’ve so painstakingly provided and vetted — through yourself or other sources of that information?
Also, what’s your opinion of this proposition that the Salzman’s have ill-got loot or property stashed?
What did Keith hope to gain by doing this?
I am finding myself in the odd position of defending the practice of multi-jurisdiction entity registration. There is nothing illegal about registering the same entity in numerous jurisdictions, and in fact, it’s required to do business in many locations. For example, let’s pick a big company – Bank of America Corporation – and search them in multiple state’s corporations registration databases. You will see BoA is registered in every state in the US. Their home registration/jurisdiction is in Delaware and all other registrations are considered ‘foreign’. This is not illegal, odd, or uncommon.
Continuing with my BoA example, BoA’s headquarters are in North Carolina, not Delaware. Why would this be? Likely because Delaware offers more privacy protections for original registrations in that state than pretty much any other in the US. For me, this explains how the AUSA had trouble figuring out which First Principles was the proper entity. Most states post on their databases if an entity is in “good standing”, and other basic info., but Delaware hides that information behind a rather expensive paywall. Anyone investigating entity information in Delaware will hit more brick walls and paywalls over anywhere else. Clearly Raniere & the crew were aware of this and is likely why they chose DE as their home registration state. Of course, it’s my humble opinion that the DE Dept. of State messed up and should never have allowed the registration of the second First Principals if the other one by such a close name already existed.
Now speaking to the sheer quantity of entities NXIVM registered over the years, that is a lot. Again, it is not uncommon for an entity to create spin-off entities that will be registered as separate businesses, but ultimately under the oversight of a parent company. However, in my experience, I have never seen as many registrations that NXIVM has. Even real estate entities, which often will create a separate LLC for each parcel of property they own/manage (sound familiar, Frank?), often don’t have this many. Possible, yes. Likely, no. NXIVM clearly did this to confuse and obfuscate who was running what.
Full disclosure – I this is part of my real life job – registering businesses, so I obviously have my biases. Please do fact check me (which you should be doing with anything you read on the internet, but you know that).
There is absolutely nothing wrong with a company registering to do business in multiple jurisdictions. In fact, if a company does not properly register in a jurisdiction where it is doing business, it may not be able to file pleadings in any court in that state even if it has been named as a defendant in a civil lawsuit.
But that is NOT what Raniere was doing. Rather then register the already-established NXIVM Corporation in a different state than its state of origin, Raniere would establish an entirely new corporation with that same name in that different state. He would then obtain a separate FEIN number for the new corporation – which, in turn, allowed him to set up bank accounts in that entity’s name.
What you do as part of your job is totally legitimate. What Raniere did from fraudulent from the get go.
Thanks for the clarification, Joe. You are right that registering the same entity in many states as the home jurisdiction is not allowed. Adding the extra EINs makes it even more suspect. I can’t believe the IRS didn’t catch on sooner.
Thanks, Joe!!!!
I just asked a question and didn’t know the answer was below.
I greatly appreciate the insights you provide.
Thanks
Joe,
Is there an inherent strategy, say to defraud or some other gain to incorporating companies with the same name in multiple jurisdictions?
I am surprised Raniere didn’t incorporate in the great state of Florida. It’s a favorite of scammers.
Now we know what Raniere was thinking about with all of those quizzical looks on his face in various photographs, thinking up new company names. LOL
Amway is a contraction of the AMerican WAY.
As I pointed out earlier on the post about Mack’s property, as far as I can tell we haven’t seen anything showing Mack forfeiting the condo, which is in her name personally, only Salzman forfeiting any interest she might have in the property that is actually Mack’s – which could be nothing more than dubious “collateral” which reportedly included signing over properties:
Allison Mack’s collateral revealed: give up home, unborn children to Raniere; destroy parents & nephews for Raniere
“(3) a contract that transferred ownership of Mack’s home if the commitment to Raniere was broken”
https://frankreport.com/2018/04/15/allison-macks-collateral-revealed-give-up-home-unborn-children-to-raniere-destroy-parents-nephews-for-raniere/
If the “contract” was with a NXIVM corporation in which Salzman had an interest, or possibly with Salzman herself (perhaps because Raniere notoriously didn’t like having his name on anything), her forfeiture of interest could have some relevance, at least as a formality. It may just be a pro forma legal move to ensure that Mack has free and clear title to the property after the nefarious and illegal activities of NXIVM and DOS, whether or not the feds are even proceeding with seizing it from her.
And having two corporations with nearly identical names is a trick used by Scientology, though that’s necessarily to say it’s where Raniere got that particular idea.
The thing I’ve been trying to figure out, is if many or all of those corporate entities are subsidiaries of, or owned by, First Principles Incorporated – and thus covered by the forfeiture order – or if there are lots of loose ends hanging out.
Also, thanks for trying to track and report this all as much as possible – I know it’s difficult, as evidenced by the fact that even the feds’ legal functionaries got that corporate name wrong.
AM comments: “Salzman forfeiting any interest she might have in the property that is actually Mack’s –“
Whoa, hold up. This is the 3rd or 4th time I’ve heard about Mack being used as another put-up job for property used for illegal activities that Nancy Salzman and/or Clare Bronfman had title to or interest in as well.
And, yes, might also be “collateral” as AM says but how much of the “collateral” might also be a way for the Bluebeards to steal from their prey INCLUDING (to the degree she didn’t willingly participate) Clare Bronfman or whomever financed the property purchases or leases?
Did Nancy Salzman barter her freedom with her crimally procured property title holdings?
Heidi, it’s possible that there was some more complex ownership dealing behind the scenes, and not obvious from the publicly available property records. But it may just be as stupidly simple as that because Mack did actually make a “contract” putting up her home as “collateral” to DOS/NXIVM – and I think it’s been reported that they went so far as to have such things notarized, to make them seem official and enforceable – that the feds had to have Salzman renounce any interest in the property as a formality.
What other properties have there been reports of Mack being involved in? I think she ended up renting out the one she owned, and living with Clyne in a bigger place closer to Raniere that was owned by NXIVM, but that’s all I can recall seeing referenced.
And I suspect that Nancy Salzman had to give up all her interest in NXIVM and its properties (she doesn’t seem to have had any in hew own name) as part of her deal with the feds, leaving her with nothing other than what she might have in retirement accounts. Since we don’t yet have an exact accounting of how the property dealings are working out, even though it seems likely the feds swept the table clean, there are real questions we should look to solid answers for, which leave room for uncertainty and speculation – and gives Frank some room to make more interesting stories.
The key question is where did all that loot go?
There was far more than 500,000 dollars laundered through NXIVM and its empty subsidiaries.
Mexico.
We don’t know.
But also we have to keep in mind, that the federal investigators may well have traced it – perhaps with cooperation from defendants, that their plea deals were conditioned on, not to mention Karen Unterreiner, the accountant who made some sort of deal to avoid prosecution, and thus has largely avoided attention. That’s also the sort of behind-the-scenes detail that we don’t know.
It’s been reported that NXIVM was actually losing money starting around the time of the Times Union expose’. They may well have just burned through a lot of money keeping things going, paying Rainbow Cultural Gardens nannies cash under the table. And at the end they may have taken cash back to Mexico to fuel Raniere’s expensive lifestyle – hasn’t just the cost of his rental, been reported as $10,000 a week? – and other expenses.
It’s also possible as well that Raniere just gambled more away in one way or another, perhaps even at the Saratoga Casino. Remember that book on casino gambling he’s reading in one of the hairy-chested bed pictures?
Just because there’s a question, doesn’t necessarily mean that the answer is anything nefarious, mysterious, or even unknown – other than to us.
Lawrence Ray, the Sarah Lawrence parent accused of extorting and abusing his daughters’ friends and peers in a Nxivm-like sex ring on the elite campus, reportedly made nearly $2 million in just two years by forcing his victims into prostitution. Ray was arrested last month on charges of indoctrination and exploitation, engaging in sex trafficking, extortion and forced labor.
Upon his February arrest in Piscataway, New Jersey, the con man was reportedly found in bed with ANOTHER alleged female victim — a former college roommate of his daughter. Ray, who was the legal “guardian” of that woman, forced the unidentified victim to engage in sex with other men while he filmed and berated her, according to the prosecution.
***Who needs phoney classes when your daughter has friends?***
https://www.insidehook.com/daily_brief/news-opinion/sarah-lawrence-sex-trafficker-made-2-million-forcing-victim-into-prostitution
If the thuggish Lawrence Ray could make 2 million dollars in just two years, how much money did the Busy Beavers of NXIVM make and launder in some twenty years?
Several news sources refer to this sex cult as “Nxivm-like.”
VanGod has been crucified, but like Jesus His movement lives on and grows.
Frank’s list shows Nx does not own Girls By Design. So who does? Is GBD now in the public domain and everyone can use and benefit from the teachings of KK and KV? What if there are BDSM instructional videos starring Kook–possibly (hopefully) in leather and lace—can they be shown on the internet for free, or were they taxpayer funded by the CBC?
Was GBD ever even incorporated separately? It seems to have been a fairly amateurish, disorganized and short-lived effort, so it may not even have had a formal existence except as a personal DBA of Kreuk and Voth.
I checked a Wayback Machine link in an article of Frank’s, and even until it went offline in about 2013 the website was still saying “coming this summer” with a 2008 copyright date, no organizational or corporate information, and only promising that a mechanism for making donations would be forthcoming. Donations would probably would have required registration as a non-profit, which would have conflicted with NXIVM’s for-profit corporate structure and Objectivist (Ayn Randian) disdain for charity, and so not only sounds badly thought through if at all, but as if Kreuk and Voth didn’t really even get how Raniere did things.
Look it up. The GBD website is registered to “In the City Entertainment” which is KV’s entertainment production company.
Frank, still waiting for the promised explanation for pulling K Voth’s GBD article.
“Frank, still waiting for the promised explanation for pulling K Voth’s GBD article.”
Indeed. It seems weak to take down an article, like Kendra Voth threatened you and you backed down. What’s the story Frank?
No one threatened me. That would be the last reason I would ever take down an article. If someone threatens me, I go in the opposite direction: Confrontation. However I do sometimes grant requests when they are accompanied by candor, sincerity and new information.
“However I do sometimes grant requests when they are accompanied by candor, sincerity and new information.”
What new information have you received about Girls By Design?
That will come in time. Please be patient.
Frank, will this “new information” make GDB and KK look better or worse?
I would say it makes Kendra look better. What I wrote before was true, but it could be that she is the victim of a horrible set of circumstances.
I’ll be patient, Frank. If something “makes Kendra look better”, it usually means someone else looks worse. Should Kristin be asked for her comments?
The tension builds…….
Kristin has been asked to comment.
“Kristin has been asked to comment.”
There are a whole ton of things that ho needs to address. She has even been caught out lying about when she left. Lying does not get you anywhere good.
…and this is Kristin after Kendra’s “candor” hit her–
er.com/1W77.mp4
Since Kendra seemed to be the one interacting the most with the girls on the website, did you ask her if she remembered “G” aka Gertie and could confirm that G was indeed a real girl from Canada or whether she thought Raniere could have been pretending to be one of the “girls” and contributing articles unbeknownst to them?
“Weak” is inappropriate language around Don Parlato, Anon. And, I can tell ya it’s a fact that Frank tends to do the opposite of what’s recommended, especially by a female and especially when feeling threatened. F’in Triple Taurus, Sicilian. What are ya gonna do?
A little stubbornness can get one places. You don’t respect weak men you can walk all over, Heidi.