Raniere Being Cut Off From Cafritz Inheritance & Calling All Victims: There’s Still Time to Make a Claim Against Him

Earlier this week, the EDNY prosecutors submitted a proposed “Restraining Order” to U.S. District Court Judge Nicholas G. Garaufis.

If the judge signs it – which he is expected to do – Keith Raniere will be further cut off from the funds that he would otherwise inherit from the late Pamela Cafritz.

MK10ART’s painting of Pamela Cafritz

Rumors have circulated for several weeks that the Internal Revenue Service had already placed a lien on the same funds for what it anticipates to be a significant amount of income taxes that Raniere owes

This week’s filing is verifiable proof that the government intends to do all that it can to keep Raniere from getting any of Cafritz’s money.

Prior to her death, Cafritz established the Pamela Anne Cafritz Living Trust – and apparently named Raniere as its sole beneficiary.

At the time of her death, there was a reported $8-$9 million in the Trust.

In its most recent filing, the government noted that in conjunction with his sentencing on October 27th, Raniere was ordered to pay the following amounts: a $1,750,000 fine, a $700 Special Assessment, and a $15,000 assessment pursuant to the Victims of Trafficking Act 2015 (All of those funds will go to the government).

MK10ART’s splendid portrait of Keith Alan Raniere.

Per its proposed “Restraining Order,” the government is seeking to freeze Raniere’s interest in the Pamela Anne Cafritz Living Trust.

More specifically, the government is seeking to prevent Raniere and any other interested parties from doing anything that would cause any of the Trust’s assets to be removed from the jurisdiction of the Court or to be otherwise concealed.

It is also seeking to restrain any financial institution that has assets of the Trust in its custody, control or possession from conveying, disposing of, or transferring any of those assets – and/or from taking any offsets against them.

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Restitution Claims

During Raniere’s October 27th sentencing hearing, Judge Garaufis set January 27, 2021 as the deadline by which all those who are seeking restitution from Raniere must file their claims.

Judge Nicholas G. Garaufis

Under 18 U.S.C. §3663, the Court may order convicted defendants to pay restitution to their victims.

For purposes of that section, the term victim means “a person directly and proximately harmed as a result of the commission of an offense for which restitution may be ordered including, in the case of an offense that involves as an element a scheme, conspiracy, or pattern of criminal activity, any person directly harmed by the defendant’s criminal conduct in the course of the scheme, conspiracy, or pattern”.

Given that Raniere was convicted of Racketeering and Racketeering Conspiracy, it would appear that anyone who was harmed as a direct result of their interaction with Raniere and/or NXIVM/ESP may be entitled to submit a claim against him (Those who were directly affected by his other crimes – such as the Sex Trafficking charge – will automatically qualify as victims).

Unlike Clare Bronfman – whose restitution obligations were limited to the two women that were harmed by the specific crimes to which she pleaded guilty (i.e., conspiracy to harbor an illegal immigrant for financial gain – and fraudulent use of another person’s identification) – Raniere may be subject to claims from a much broader group of victims.

In the end, however, it will be up to Judge Garaufis to determine who qualifies as a victim – and how much each victim is entitled to receive from Raniere. Any dispute as to the proper amount of restitution for a victim will be resolved by “a preponderance of the evidence” – which is the standard of proof in most civil cases.

Submitting a claim may be somewhat like buying a lottery ticket. But like the New York Lottery says “Ya never know”.

Although prosecutors encouraged certain people to submit claims against Clare, it is not known whether they will do the same with respect to Raniere.

Regardless, anyone who believes that they suffered harm as a direct result of Raniere’s criminal activities may submit a claim for restitution to the prosecutors (The prosecutors are responsible for demonstrating the amount of each victim’s loss).

The applicable mailing address for anyone who wishes to assert a claim for restitution is as follows:

Tanya Hajjar, Esq

Organized Crime and Gangs Section

U.S. Attorney’s Office for the Eastern District of New York

271 Cadman Plaza East

Brooklyn, NY 11201

Tanya Hajjar

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No Word Yet On Other Sentencing Hearings

Even though Judge Garaufis has twice indicated on the record that he wants to get the other defendants in Raniere’s case sentenced as soon as possible, no sentencing hearings had been scheduled as of 5:00 PM on November 12th for Allison Mack, Nancy Salzman, Lauren Salzman or Kathy Russell.

With the oncoming holidays – and the very real possibility that public facilities such as the EDNY Courthouse may soon be closed again in response to the current spike in COVID-19 cases – it would seem like time may be running out for those sentencing hearings to be held this year.

From the defendants’ perspective, they would likely be happy to have those hearings put off as long as possible – especially after seeing the sentences that Judge Garaufis handed out to Raniere (120 years) and Bronfman (6.75 years).

Although there was originally a good deal of speculation that all the remaining defendants would get relatively light sentences, that is no longer the case.

Now, the speculation is that Allison  Mack – who was vilified and scandalized throughout Raniere’s trial – could end up with a sentence similar to Bronfman.

MK10ART’s portrayal of Allison Mack & Keith Raniere

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Similarly, many now believe that Nancy Salzman will be sentenced to several years in prison even though she was the first of the defendants to plead guilty – and even though she is 65-years old and still battling cancer.

Nancy Salzman

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Lauren Salzman – who pleaded guilty to the same two charges as Allison Mack (Racketeering and Racketeering Conspiracy) – may still get a somewhat lesser sentence because of her cooperation with the prosecutors and her testimony during Raniere’s trial. But whereas it was originally thought that she might serve only 1-2 years, a sentence of 3-4 years now seems more likely.

Lauren Salzman

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Even hapless Kathy Russell – who only ended up being indicted because of the horrendous advice she received from her Bronfman-paid attorney – might end up serving some time in federal prison.

Kathy Russell

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VIVA EXECUTIVE SUCCESS!

 

 

 


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K.R. Claviger

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  • Claviger-

    Any updates coming on Keith Ran-ire or the fair maiden Clare Bronfman ?

    A timely update on this rainy Friday would make all of the readers happy. 😉

  • I think a big part of why the judge came down so harshly on KAR and Bronfman is because neither of them took any responsibility for what they did. KAR’s sentence wasn’t really a surprise, and from what I understand about Bronfman’s sentencing hearing, she pissed the judge off quite a bit. Didn’t one of her apologies to a victim basically come across more as a threat? He has to act like he’s completely objective in his determination, but for all we know, he may have decided in his mind to add a couple of years because he was pissed at her. Even Clare’s presentencing report mentions her continued loyalty to KAR.

  • I hope the court is allowed to order some of the money (if there is any money left) for child support where KR has not paid it.

    • The Court has very broad discretion when it comes to restitution – but that works in both directions. So, Kristin could certainly be given a restitution award that would likely be confirmed on appeal. But she could also get nothing – which would also likely be confirmed on appeal.

      There is also some question as to just how much money Raniere will have available to pay restitution awards to individuals. Even if he started off with $9-milliom, the imposed fines and penalties already total $1.8 million – and the IRS liability might be as high as $20-$30 million.

      If I were one of the claimants, I would treat my claim as a lottery ticket and enjoy it if it happens to come in.

      • Here’s what I think: Keith Raniere’s tax debt from the Consumer Byline period was incurred prior to the birth of Keith’s child with Kristin Keefe, so it takes precedence over subordinate creditors such as his son’s child support.

          • https://trp.tax/tax-guide/nys-tax-warrant-statute-of-limitations/#:~:text=20%20years.,IRS%20debts%20are%20already%20expired.

            So What is the NYS Tax Warrant Statute of Limitations?
            20 years. The State of New York has 20 years from the date a warrant could have been filed to collect on a tax debt. This is double the ten years given for the IRS Collection Statute Expiration Date. NYS will be actively trying to collect while IRS debts are already expired. For assessing additional debt, NYS generally has 3 years.

            A law in 2011 changed the start of time tolling from the actual warrant filing date to the date that New York State could have filed the warrant. Prior to that NYS could delay warrant filings and thus extend the collection period.

            Another difference from the IRS is the IRS does not have to have been able to file a lien for them to start their statute of limitations. The IRS statute starts running as soon as the return is processed.

          • You’re correct about NYS having a longer statute of limitations for unpaid taxes. But the reality is that NYS rarely goes after any unpaid taxes that are more than 10-years old.

            In this case, the NYS Department of Taxation & Finance was put on notice about – and provided detailed evidence of – the tax evasion going on in NXIVM back in 2005. So, I doubt that the agency is suddenly going to spring into action now – and start slapping liens on any remaining NXIVM assets that may be out there.

            It would be great if any Federal, State or County agency in the NDNY did anything to punish those who were involved in the NXIVM criminal enterprise. But since doing so would reveal what wasn’t done for almost two decades, I’m afraid that’s never going to happen.

  • Interesting points made in these comments.

    1. I have always believed non-violent criminals should not go behind bars. But– Reformed Gentlemen–KR was emotionally violent in the emotional pain he inflicted. One can argue the same for CB.

    We can get into the academic debate of “dangerous”. The problem with KR is he will not stop if let out;

    2. Regarding the civil suit: I do wonder where the pot of gold is hidden. I wonder if everything is trusted away somewhere;

    3. All these fines go to the State, none to the victims. Makes you wonder about all those speeding tickets, parking tickets and nuisance fines municipalities use to fund their excessive bureaucracies.

    If they defund the police, who will fund them?

    Police have turned into revenue agents.

    • Fascinating points. I have always agreed about non-violent crimes as well, but this scumbag and his scumettes have moved the ball and refined my notions on what violence is, and the not so subtle thresholds between what is physical, mental, and emotional…

    • I would agree in general when crimes are non-violent AND victimless, though there are still important considerations to take into account that don’t make it quite so simple.

      However, in many cases of financial fraud with multiple victims, for instance, you will find instances where those who were affected were robbed of their means of living a decent life, and committed suicide; and suffered various other disabilities, and deaths after shortened lifespans, that resulted from a combination of stress and loss of financial resources. The number of people who killed themselves as a result of being lured into Bernie Madoff’s scam exceeds the toll of most mass-murders or mass-shooters.

      “White-collar” perpetrators do not necessarily somehow have clean hands. And, if anything, in most cases they are under-prosecuted and under-punished compared to other crimes that cause similar harms; for example, someone who steals from a building empty of people, is in most cases treated much more harshly than, say, someone who works in that same building during the day, embezzling from the accounts.

      Raniere is someone who, besides actual crimes of violence or coercion, committed all manner of fraud and conspiracy, and did significant harm to a relatively large number of people, including probably causing the deaths from treatable cancer of two of his harem members.

    • Good thing you weren’t the judge in Bernie Madoff’s case, not the mention the various characters sentenced in the Enron and many other cases. LOL

  • WHAT BAD ADVICE?

    Even hapless Kathy Russell – who only ended up being indicted because of the horrendous advice she received from her Bronfman-paid attorney – might end up serving some time in federal prison.

    • There’s an old FR article about it somewhere. She kept pleading the 5th. Even for really simple questions. It was really stupid. If she had just answered their questions openly and honestly, she would be in very little trouble.
      And there was some other reason, I don’t remember. But her lawyers really screwed her over.

  • If it’s open to all I might make a claim against him. He’s wasted valuable hours of my life. No Keith Reniere then no Frank Report and it’s surreal, amazing reporting in this insane saga, which I can’t get enough of! Then there is the comments section, which is entertains no end.

  • Couldn’t a “restraining order” (which concerns the blocking of Pam’s account) have been requested earlier? I mean, right from the start of the court proceedings. I don’t know the American legal system, I’m just asking if that’s possible there. Because in our high-profile criminal cases, the prosecutor’s office usually asks for it at the start of the court hearing.

    • Until Raniere had been adjudicated and fines and penalties had been imposed on him, there was no basis for the DOJ to obtain a “Restraining Order” with regard to the funds he inherited from Pam Cafritz. The IRS probably used the fact that Raniere had not filed taxes for 25 years as the basis for its request to freeze the inherited funds.

      • Funds are frozen all the time for MLM scams. LOL

        This occurs even prior to the trial and the judges often don’t have the defendants access to their ill-gotten gains to pay their lawyers, in order to not diminish the funds expected to eventually be paid to the net losers. LOL

  • Frank, I’m aware of four books written by victims of NXIVM so far: Natalie´s book, Oxenberg’s (mother) book, Oxenberg’s (daughter) and the one written by Edmondson. Could you please tell me if there is any other that I’m not aware of? Thank you as always.

  • Re Sentencing of the Salzmans, Allison Mack, and Kathy Russel:

    In view of the fact there is a pandemic and as of late no vaccine, I believe the rest of the defendants, no matter the length of their sentence, should be given home confinement.

    The defendants are all nonviolent defendants. They do not represent a threat to the public-at-large.

    None of them deserve to risk contracting Covid-19. Covid can be a death sentence or can cause lifetime health complications.

    At the very least they should not be imprisoned until a vaccine is available.
    ****************

    RE The Trust and other Monies:

    I guarantee Nancy Salzman and Kathy Russel have the keys to the castle — Kristen Keefe is adamant Nancy Salzman knows the whereabouts of the cash and other financials.

    Why doesn’t the government or Frank believe her? Keefe was an insider.

    • I completely disagree that they should be allowed to have home confinement. No! They are master manipulators and will continue their cons. Make them pay at least some time that handicaps their con/game.

  • Well-written trusts typically have a so-called “spendthrift clause” designed to prevent the beneficiary of the trust from incurring debts or liabilities; if they do, the trust ceases making payments directly to the beneficiary, since that money would be intercepted by creditors or claimaints, though typically the trustee/s can make payments on behalf of the beneficiary, such as directly paying for rent and utilities.

    So it’s questionable whether authorities can actually attach the trusts, or if money could be made available to victims – anyone with such hopes would need to find out a lot more about exactly how things are structured. However, the trust, which should be generating over $400,000 per year in income at standard rates of return, might be able to pay attorneys, or at least put money in Raniere’s prison canteen account.

    • Yes, it is fiduciary duty as Power of Attorney and, in Probate, revoking the trust due to incompentence.

      And that will be the case.

  • One really wonders why more perpetrators aren’t given the chance to take the “Epstein way” out. Since the government ruins their lives completely and takes all their assets, wouldn’t it just serve everyone’s interest just to have them dead? No trial, no sentencing, no long term incarceration? The taxpayers would save money, the victims would have justice and the perpetrator would simply be gone.

      • Frank, I hope it is a rhetorical question. The coroner in Epstein’s case assessed it as being a clear cut case of suicide. So… unless someone is more or equally qualified as the coroner…

        • “The coroner”. Sure. Part of the system. Independent doctors filed it a murder. Guards were gone. Cameras turned off. Injuries inconsistent with suicide.

          The real question becomes: who in “the system ” has the power to order cameras turned off and guards to turn their backs?

      • I believe he committed suicide. Which is what I’m suggesting. People trapped at Supermax for life should be given this option too.

        • It gives them too much power to let them take their own life although I suppose they could just stop eating and drinking entirely if they were that keen to die. Even then some prisons force feed or used to.

          • Federal prisoners are not allowed to starve themselves. After the fourth day of non-eating, the prison needs to notify its BOP Regional Director. After that, forced-feeding can be implemented to ensure that the prisoner does not harm themselves.

            The rules vary at State prisons and local jails. But, in general, intervention does take place when a prisoner goes on a hunger strike.

      • There was a third Epstein way out, which I tried to raise here before, based on an anonymous message that was posted on 4chan before there was any media announcement of Epstein’s death. Here it is in full:

        Not saying anything after this pls do not try to dox me but last night after 0415 they took him [Epstein] [to] medical in a wheelchair front cuffed but not 1 triage nurse says they spoke to him. Next thing we know trip vans show up? We do not do releases on weekends unless a judge orders it. Next thing we know, he’s put in a single man cell and hangs himself? Here’s the thing, the trip van did NOT sign in and we did not record the plate number and a guy with a green dress military outfit was in the back of the van according to the tower guy that let him through the gate. You guys I am shaking right now but I think they switched him out.

        https://www.intellihub.com/prison-workers-4chan-post-10-minutes-before-news-of-jeffrey-epsteins-death-hit-media-guy-in-a-green-dress-military-outfit-switched-him-out/

        It’s very difficult to tell from the photos that were released of the corpse, but enough people found discrepancies in the ear and the nose to throw into serious question whether the body in the cell was actually that of Epstein.

        I wasted two days of my life scouring the Internet for any indication as to who formally identified Epstein’s body, and whether there were any DNA tests, etc., without success. His brother and lawyer viewed the body, and it raises the question: if they saw it was not Epstein, would they not have kept their mouths wide shut, knowing that their guy was out and safe somewhere?

        Epstein was arrested by the NYPD in conjunction with the FBI. The FBI knew all about Epstein’s and Ghislaine Maxwell’s activities from 1996, according to a victim called Maria Farmer, who reported their abuse and that of Lesley Wexner, only to be completely ignored. Maria Farmer is emerging as an absolutely crucial witness to all this:

        Also, watch anything by the brilliant independent journalist Whitney Webb on the subject. She has released a long telephone interview she did with Maria Farmer and Webb is an astonishing expert on every angle of this case, except the one I’m mentioning here. She has not (to my knowledge) looked into the possibility that Epstein was switched out.

        There’s no doubt that the FBI did everything it could to bury the case against Epstein, and Farmer says the Feds were as abusive towards the victims as were Maxwell and Epstein (!!). The Feds have made a show of taking Virginia Roberts seriously, she says, while ignoring her and other victims and refusing even to collect evidence from her. Maria Farmer says she repeatedly tried to give the FBI an envelope that had the DNA of Maxwell and Epstein and could be proved to use they had child porn back in 1996, and to this day, the FBI refuses to take this evidence. This evidence alone could have sunk this evil duo decades ago and seen them in jail.

        The picture emerging is that it was the NYPD that pushed for Epstein’s arrest; they apparently have their own “foreign policy” in this regard. They acted with the FBI, according to reports, but the whole point was that Epstein’s doings in NY were not covered by the amazing immunity he was given, along with all his pals, named and unnamed, for further prosecution for the Florida offenses.

        The very fact that this account of Epstein being switched out has disappeared from the radar, when it was, without doubt, posted online before any media release on Epstein’s death, makes me very suspicious, and so I’m just raising it here, to say that there is a third alternative. Not only did Epstein not kill himself — it wasn’t even Epstein who got killed. Somewhere, there may have been a mark who had too close a resemblance to the man in jail, and he paid the price for his looks. Just maybe.

        All the stories from the jail are fishy beyond belief, from guards falling asleep, from suicide watch being terminated, from Epstein’s cellmate being removed, from the CCTV cameras not working, to the pictures of the corpse on the gurney just showing enough to make it look as though Epstein was dead, but not enough to be certain.

        There’s not a single thing here that I trust. I looked at the photos released of the autopsy, and the wound on the neck looked as if it had been made by a wire or rope, not a flimsy sheet. The whole story stinks from top to bottom.

        Ghislaine Maxwell will never tell the truth about her activities and I really hope she survives to see her day in court, so that her evasions and lies can be exposed at least to some extent.

        As Maria Farmer points out — the FBI never raided Epstein’s island until after he died, and they have apparently yet to raid his extremely creepy New Mexico compound, giving every opportunity for shadowy forces in the background to sanitize the crime scenes.

        There are multiple accounts that both Bill and Hillary Clinton were regular guests at the New Mexico hideout. Bill has denied that he ever went to the island, despite multiple eyewitness accounts placing him there. It seems Hillary may also have visited the island. Just one of these lies has to be exposed, and Bill Clinton at least is in deep, deep trouble. The media have only scratched the surface of this sordid mess.

        Lesley Wexner is emerging as the real main monster behind the scenes, if Maria Farmer is to be believed. He kept Epstein as a front, making him look wealthy. He gave Epstein that NY mansion for one dollar. According to Farmer, Wexner had already equipped the mansion with surveillance cameras before he did so. When is Lesley Wexner going to be arrested? Don’t hold your breath.

      • At this point, what difference does it make? LOL

        The point is taxpayer dollars aren’t paying for Epstein’s care and feeding. LOL

  • Regardless of whether someone is ready or willing to encounter and to face one’s own consciousness, and of the actions emerging from that very awareness (and from out of one’s individualized energetics, however dense or bright it might be) – the comeuppances are, inevitably going to arise.

    Prison and the loss of ill-gained profits are merely the possible material consequences. Yet we are born naked and retain nothing, beyond “consciousness,” when we leave here.

    As for the soul and the spirit, given to us by nature, there is another form of rebalancing that will have to be understood, or not understood, via the application of some comprehension (or not) of what is free will, versus what is artificial. There is no doomsday, but there is individual responsibility.

    In a way, the sentencing of the Raniere group is symbolic. A material reckoning. There is, however, much more to the very unique sacredness of life itself than can ever be recompensed here materially.

    It comes as the realization of the distinction between experience and “belief.” The distinguishing difference, between what is “real and what is unreal” is immense. There is silence behind all of the noise, a tremendous vastness. How we choose to ignore that or to pay attention to contemplativeness, is up to each one, alone, and as part of the unperceived whole, as well.

    Now, back to being “juvenile” and cussing out a few humdingers, for the sake of a little vigorous self-expression.

      • Scott -Apropos of the above comment –You can and should ask which “humdingers are you referring to” – if you really want to know — but to tell another commenter that you “fell asleep partway through reading” her comment — is said to insult, to make someone feel bad, to be sarcastic, is gratuitous – and brings negative energy to a comments section that is supposed to encourage discussion.

        Going forward, I want civility towards commenters. Many – literally – asked me to ban you. I do not want you to leave because, when you want to, you add worthwhile thoughts to the discussion. Unfortunately, I can no longer invest the time in reviewing your many comments, looking up the original comments to see what you are replying to, and if it is an insult, then redacting offensive portions.

        I do not have to do that with anyone else.

        Claviger, who helps review comments, says to simply ban you. Going forward, if you insist on enjoying the practice of insulting other commenters [and I know it is fun], I am going to go with Claviger’s idea simply to save time.

        By the way, I do not mind when you insult me – or take shots at the characters under discussion. It is the commenters who enjoy the privilege of a guest at Frank Report.

        • Let me add that in lieu of totally banning you, I think you should be limited to one comment per post. That alone would save all of us (Frank Report readers included) countless hours.

  • Gotta admit, the sentences handed out by Judge G have been scary. 120!!!!! That’s more than serial killers and some Nazi war criminals. Just glad I’m not going before him.

    Nancy better say her prayers and hope for an earthquake that keeps all her detractors away from the court. She’s almost as guilty of as much shit as KAR. What’s to stop the judge from exceeding the prosecution guidelines? Hope she’s taking Valium to get some sleep.

    • Always Anonimous,
      What judge/s is/are presiding over your criminal counts?
      Hope you’ve found solace in being allocated to them.

  • Can you imagine how successful and joyful the prison guards watching Raniere will become if he can only speak to them and provide his tech? I’m kinda jealous.

Frank Parlato Investigates

Frank Parlato Investigates

Frank Parlato is an investigative journalist.

His work has been cited in hundreds of news outlets, like The New York Times, The Daily Mail, VICE News, CBS News, Fox News, New York Post, New York Daily News, Oxygen, Rolling Stone, People Magazine, The Sun, The Times of London, CBS Inside Edition, among many, many others in all five continents.

His work helping take down NXIVM is featured in books like “Captive” by Catherine Oxenberg; “Scarred” by Sarah Edmonson; “The Program” by Toni Natalie, and “NXIVM. La secta que sedujo al poder en México” by Juan Alberto Vasquez.

Parlato has been featured prominently on HBO’s documentary “The Vow” and acted as lead investigator and coordinating producer for Investigation Discovery’s “The Lost Women of NXIVM.”

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