Kathy Russell

Kathy Russell Quits Nxivm – Now Knows Raniere Deceived Her!

Good news.

Kathy Russell has left Nxivm.

Sources close to Russell reached out to Frank Report to advise us that Russell is no longer in the thrall of the evil Keith Alan Raniere.

Hers is a very sad story with hopefully a decent ending.

Two sources close to the former Nxivm bookkeeper tell Frank Report that Kathy is definitely out of Nxivm and getting therapy.

One source said Frank Report had a hand in helping Kathy see that Raniere never had her best intentions at heart.

“Kathy has made the firm decision not to ever go back,” said one source. “She is absolutely not in contact with any Nxivm members. She is through and realizes she has been badly abused and deceived by Keith Raniere.”

Russell is living in Georgia with her sister and has left the Albany area where she lived for more than 15 years. She left Alaska in the early 2000s to come to Albany to be close to Raniere and the company he founded.

“Kathy is not infatuated with Keith any more and is now going to therapy to treat her relationship with Keith much like a battered woman psychiatric condition,” one source close to Russell said.

Kathy, both sources said, finally realized that Keith lied to her and that he told lies about other women so that the women were always at odds with each other.

“He kept a private chaos going on so that all the women were catty towards each other and were enemies,” said one source. “Finding this out after 15 years, that everything was a giant lie, was very traumatic for Kathy.”

Though a dancer herself, Kathy did not endorse the recent MDC dancers efforts outside the MDC prison where Raniere is being held awaiting sentencing and was “horrified” to see their shenanigans.

Kathy is awaiting sentencing for her conviction for visa fraud and is under home arrest, which allows her to be out during the day but requires her to be home at night.

Russell’s travails began when she was served a subpoena on April 25, 2018 that required her to testify before the grand jury in Brooklyn that was hearing evidence about the NXIVM criminal enterprise.

Rather than retain her own attorney, Kathy utilized one paid for by Clare Bronfman – William Fanciullo, an Albany area attorney who once served as an assistant U.S. Attorney.

William Fanciullo
 
On April 30th, Fanciullo sent an email to the U.S. Attorney for EDNY to inform them he was representing Kathy. Within 15 minutes of receiving his email, prosecutors contacted Fanciullo offering to discuss Kathy’s scheduled appearance before the grand jury.

He declined that invitation.

When Fanciullo and Russell showed up, as scheduled, on May 10, 2018, the lead prosecutor, Moira Kim Penza, asked him if he had any questions – and offered to meet with him and Russell before Russell began her testimony.

He declined that invitation.

Kathy appeared before the grand jury with a scrap of paper in her hand bearing words she was to repeat whenever she chose to invoke her Fifth Amendment rights against self-incrimination.

Kathy decided to invoke the 5th when she was asked the first two questions:
(1) Was she paying for Fanciullo’s legal services?
(2) Had she recently destroyed any NXIVM-related documents?

For the next 1½ hours, Kathy was asked about a range of topics, including her experiences with Nxivm; the courses she took; her positions within Nxivm; the nature and philosophy of Nxivm and related entities; and certain Nxivm rules, rituals, and ranking systems.

Sometimes, she answered. Other times – approximately 50 times – she invoked her Fifth Amendment rights.

Some topics that Kathy refused to answer were:
• Her education level;
• Her weight;
• Her decision to move to Albany to work for Nxivm – and leave her son behind in Alaska;
• Her duties and responsibilities as Nxivm’s bookkeeper;
• Keith Raniere’s sexual partners;
• Whether she was a member of DOS or had ever discussed DOS with Keith Raniere;
• Why she did not ask other NXIVM members whether they were branded;
• Whether she knew anyone in Nxivm who had had an abortion;
• Whether NXIVM stored cash at Nancy Salzman’s house;
• Whether she had ever heard of anybody being confined to a room for a long period of time;
• Whether Keith Raniere has any children;
• Whether she knew if certain individuals were members of NXIVM;
• Whether she had any debts; and
• Whether she knew of cash being brought into the U.S. by agents of NXIVM.

When Kathy was done testifying, prosecutors, along with FBI agents, met with her and Fanciullo and offered to meet pursuant to a “Proffer Agreement” which would have permitted Kathy to get immunity from any charges and, in return, testify truthfully about Keith.

Penza again offered to meet with Russell and Fanciullo pursuant to the “Proffer Agreement” – when she emailed an offer to Fanciullo on May 14, 2018 (A “Proffer Agreement” is a written agreement between federal prosecutors and individuals under criminal investigation that permits those individuals to give the government information about crimes with some assurances that they will be protected against prosecution).

Fanciullo wrote back to her on May 22, 2018, indicating that “Ms. Russell respectfully declines your proffer proposal” thereby sealing Kathy’s fate.

Russell was arrested on July 24, 2018, one day after the indictment against her was returned by the Grand Jury and nearly three months after she had been summoned to testify.

Fanciullo represented Russell at her initial appearances in the Northern and Eastern Districts of New York but was replaced on August 9, 2018 by Justine Harris.

Justine Harris is now Kathy’s lead attorney.

Harris engaged in plea deal negotiations with AUSA Penza and other members of the prosecution team.

Kathy Russell went to the grand jury with a sheet of paper which she read from to invoke her 5th Amendment rights.

One day soon she may be able to resume her life, get some kind of worthwhile employment, or retire and lead a quiet life free from the insanity and criminality of Nxivm.

It is hoped that the judge, knowing well the harm Raniere did to so many women, some of whom he had before him in court, will realize that Kathy was another of those victims and that she deserves leniency and mercy.

But for some very bad legal advice and some misguided loyalty – for she was lied to by Keith and Clare – she might have been called as a witness against Raniere, something that at least initially the prosecution considered.

 

 

 

 


About the author

Frank Parlato

Frank Report’s founder and lead writer Frank Parlato is one of the internet’s most acclaimed investigative journalists. His writing and investigations have helped expose major criminal organizations and scandals.

Frank’s work has been cited in major publications all over the world, including The New York Times, New York Post, The Daily Mail, VICE News, CNN, Rolling Stone, and more.

He is also the publisher and editor-in-chief of Artvoice, The Niagara Falls Reporter, Front Page and the South Buffalo News.

29 Comments

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  • So which is it Frank? Is Kathy in or out? Four days ago you wrote that she was still one of the people “staunchly following” Vanguard. Now you write that sources close to her say the opposite. Obviously one of the things you posted is wrong. Other than someone telling you that Russell was still “staunchly following” Vanguard, what other evidence did you find to corroborate that information that made you confident enough to post it? Likewise, other than someone claiming to be close to her, what evidence did they provide to you to prove that she was indeed out and done?

    Since no one has been sentenced yet, how do you know someone who hates or has a grudge against Russell isn’t just using you and telling you things they hope will lead to her getting the stiffest sentence possible for her crimes, that you aren’t being used just to spread misinformation? How are we readers supposed to know what the truth is? You use words like “reportedly” “supposedly” but what do you, as the investigative journalist, believe to be true after having investigated the situation?

    • Scott,

      Frank was given bad intel; then he owned up to it and posted a correction.

      Owning up to a mistake…It’s called being a man.

      You should try it sometime.

  • Good on Kathy Russell and her family.

    Kathy’s insights about all the subverted jealousy and competing that went on as a manipulation tool rings true.

    I read notes about it in my sister’s journal dated far later than I supposed she was still pining for Keith on any kind of romantic level. Maybe it had more to do with being chosen as most spiritually enlightened, the perfect Avatar baby mama, IDK. And there were fights among the girls about overcoming “jealousy issues“ far back as I remember.

    The most insanely, passive aggressively jealous ones were always hypocritically doing the most castigating about someone being jealous.

    Anyway, recognizing even this much deception is a good sign and step for Kathy toward healing.

    I’m still kinda shocked Keith never woke up with a pillow over his head. 😆

  • The majority of her adult life completely wasted on a scumbag. Let her serve her 18 months, and get on with what little of her life she has left. Congrats to her on waking up.

  • This is an annoying narrative, Frank.

    Whenever a piece of shit like Kathy Russell leaves NXIVM (to save their own fraudulent asses), you portray them as victims. That there is Keith Raniere (a cunt) and everyone else, a victim, only if they leave.

    Kathy Russell and all the others are scum. She should be aggressively punished, as should all of them.

    If an ISIS terrorist, funder, or propaganda spreader leaves ISIS, they are not victims. They might not be the leader of ISIS but they are still cunts.

    To any “former” NXIVM retards out there reading this, FUCK YOU. You should be ashamed of yourselves. And don’t go full-on retard by becoming liberal social justice wankers to fill the void. Have you seen Mark Vicente and Kristin Kreuk’s social media lately? Total SJW retards. Mark Vicente likes to post anti-Trump nonsense and Kreuk is obsessed with blacks and aboriginals. You are both perps. And stupid. Stop being “finger pointers”.

    All those retarded “dancers” too. They are not victims either. They are spastics. And ugly. And worthless. At what point do scumbags take personal responsibility?

    Are Sarah Edmondson (total attention seeker) and Mark Vicente (so much soy) in contact with any of those still in NXIVM? If they really want to show remorse, they should serve time. Give me five minutes face to face with these two old failures in life and I would destroy all their lies and excuses.

    There is a link between being the kind of RETARD to join NXIVM, especially becoming a coach and being a lefty “progressive” pretentious twat. They have a need to feel special and a part of something bigger than themselves. They don’t see that their NXIVM cult activities are the same reason they like weird shit like trannys, illegal immigrants, and hating on those ghastly white folk.

    And those NXIVM/liberal cultists with children… Those kids don’t stand a chance, not with the crap parents they have.

    Try not to choke on your soy granola and vegan hotdogs.

    • If this is a regular post, I find it a little funny and get it. But if my Bangcockdar is correct, I’d like Frank to admit he was incorrect when he vouched for Bangcock being gone forever.

    • [redacted] Bangkok [redacted] Didn’t you say you were leaving a long time ago?

      Learn the definition of compartmentalization and nuance [redacted]. Not everyone in this cult did unethical, illicit, or illegal stuff just because the fraud in charge did and commanded many of his inner circle minions to do so. They may have been naive, gullible, too trusting, were good at promoting and selling the ripped off life-coaching material, etc., but that doesn’t make all of them cunts, non-victims, spastics, ugly, worthless, or whatever degrading negative attribute bubbles to the surface [redacted].

      Why aren’t you raging against the local authorities who let the inner circle and others of this cult get away with all the crap they were doing for well over a decade? They’re the ones who are supposed to be skilled at determining and investigating evil and illegal activities–after all, it’s their job–and enforcing the law so this kind of garbage doesn’t happen, not some naive actors or directors who just wanted to feel special or felt like they were doing something good in the world.

      The fact that these people joined this cult in the first place is the same reason they are vocal about posting “anti-Trump nonsense” or being “SJW retards” as you call them. If you weren’t so bias-blinded by your hatred of their views and them you would see that.

      • “The fact that these people joined this cult in the first place is the same reason they are vocal about posting “anti-Trump nonsense” or being “SJW retards””

        You just agreed with the statement then? They think they are morally superior to everyone else with their unearned sense of moral superiority. They have cult brain. In NXIVM, everyone else was called a “suppressive” or a “parasite”. Liberals call everyone else “ist” and “phobic”. Both cults punish those who step outside of their narrative. These people are so arrogant and zealous in their cult brain, they won’t listen to anyone else. Their beliefs are stupid and easy to debunk.

    • — “Stop being “finger pointers”.

      Writes the guy pointing fingers on here anonymously for the past few years. LOL I’m sorry your precious gal ruined her life but constantly [redacted] is not going to change that fact.

      — “Give me five minutes face to face with these two old failures in life and I would destroy all their lies and excuses.”

      Highly doubtful you would [redacted] confront either Vicente or Edmondson face to face seeing as you don’t [redacted] confront anyone online directly. Instead you only come on here, anonymously [redacted] often error-filled attacks (see your recent one on Marissa)

      • “LOL I’m sorry your precious gal ruined her life but constantly [redacted] is not going to change that fact.”

        Well, this is interesting. Who is this person’s precious gal?

      • “Writes the guy pointing fingers on here anonymously for the past few years. LOL I’m sorry your precious gal ruined her life but constantly [redacted] is not going to change that fact”.

        Guy? Did you just assume my gender [redacted]Who am I, how long have I been reading and posting on Frank Report and which “gal ruined her life”?

        “Highly doubtful you would [redacted] confront either Vicente or Edmondson face to face seeing as you don’t [redacted] confront anyone online directly. Instead you only come on here, anonymously [redacted] often error-filled attacks (see your recent one on Marissa)”

        There is not a single thing I would not say to someone’s face. Especially stupid people. If online is the only way to speak so be it. Case in point, we are conversing on the internet.

        “recent one on Marissa”.

        Sure.

    • Proclamation!!!! Bangkok haveth returned too the fold.

      K.R. Claviger will be overjoyed to hear the prodigal troll has returned.

      Only Bangkok could bridge ISIS to cunts and have it make sense in the context of NXIVM. Whatever that means…

      “ISIS terrorist, funder, or propaganda spreader leaves ISIS, they are not victims. They might not be the leader of ISIS but they are still cunts.”

      Oh my poetic, wunderkind has returned to
      us.

      Only Bangkok could say “black aboriginals” and the editor approve it.

      “Mark Vicente likes to post anti-Trump nonsense and Kreuk is obsessed with blacks and aboriginals.”
      ***********
      Bangkok I have one request…

      Are Male, Female or non-binary?

      Do you wipe back to front or front to
      back?

  • As I recall, Kathy Russell was considered the butt of the joke by all the other women in the NXIVM top echelon.
    All the NXIVM mean girls made fun of her.
    Because of that and the poor legal representation she received, she is the only person I can muster any sympathy for.

    • —As I recall, Kathy Russell was considered the butt of the joke by all the other women in the NXIVM top echelon.

      Mr. Shadow are you then the Frank Report’s Kathy Russell?

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 Parlato was the lead investigator and coordinating producer of Investigation Discovery's 2 hour blockbuster special 'The Lost Women of NXIVM.'

Frank Report is dedicated to Frank's investigative journalism and the pursuit of truth.

Read more about Frank Report's mission.

If the whole world stands against you sword in hand, would you still dare to do what you think is right?

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