[Editor’s note: Last month Frank Report broke the news that Keith Raniere’s attorneys filed a brief contesting the Department of Justice’s recommendations for victim restitution. It was accidentally published on the US Courts’ website PACER.gov., though it was supposed to be filed under seal. The Raniere filing does not identify a single female victim by her full name. But some attached exhibits do. Frank Report will NOT publish any woman’s name whose identity was shielded by the court unless the woman herself chose to identify herself publicly.]
The public has a right to know how the prosecution in USA v Raniere [the NXIVM case] wants the judge to divide up some $6 million they got from Clare Bronfman to pay restitution to Keith Raniere’s 117 alleged victims.
The prosecution – the Office of the US Attorney for the Eastern District of New York – wants more than $2.8 million of the total $6 million to go to one family – and it is not the family of Camila, Daniela, Adrian and Adriana.
It is the Sutton family, none of whose family members were alleged to have been sexually abused by Raniere.
At first blush, it seems outlandish that the Department of Justice is asking the judge to give almost half of the victims’ restitution fund to a family worth, according to at least one source, an estimated $100 million.
The Suttons are kingpins in the garment industry and their alleged victimization comes from the fact that they spent money on lawyers in defense of a lengthy civil lawsuit.
That’s right – you read it correctly – there is $6 million in restitution money available for all victims combined, and $2.8 million is to go to the wealthiest of the alleged victims – if the government gets its way.
The other 116 victims are to split the rest.
The next highest sum the government is recommending for any victim is $500,000 – the sum recommended for Camila, a Mexican woman, who, as a child of 15, was alleged to have been a victim of statutory rape by Raniere in New York State where the age of consent is 17.
A jury found that racketeering acts of possession of child pornography and exploitation of a minor were proven in the case against Raniere based on nude photos of Camila, allegedly taken when she was 15, and found on an electronic device seized from a townhouse where Raniere had possession.
In the government’s view, the Suttons deserve more than five times the amount of restitution than Camila deserves.
All told, there were 117 individuals who made a request for victim restitution. Only five testified at trial. Most of the alleged victims are going to get zero, based on the prosecution’s recommendation to Judge Nicholas G. Garaufis.
The judge makes the final decisions on victim restitution. He is not bound to follow the prosecution’s recommendations.
Joseph Sutton is the executor of the estate of the late Morris and Rochelle Sutton. He is asking for $2,854,572.26. The government supports his request.
Sutton’s company, Lollytogs, according to a promotional description of their company, “outfits the best-dressed boys and girls in school. The company, doing business as LT Apparel Group, designs and manufactures children’s fashion apparel and school uniforms under brand names French Toast, Healthtex, Detour, and @School. It also produces licensed clothing under the adidas, Carhartt, Lee School, and Pelle Pelle brands. Lollytogs’ clothing collection includes activewear, denim, outerwear, sportswear, and swimwear. The company targets a variety of distribution outlets, selling its products in department stores and discount retailers, as well as through independent fashion outlets. The business was launched in 1958 by Sam Gindi and Morris and Alfred Sutton.”
Information is scant about the Sutton’s actual net worth but one source states their founding partner Gindi had an estate in the billions. Linked-in lists the Lollytogs company as having 331 employees with profiles on Linked-in.
The company is a big-time player in the garment industry and is well known for its children’s wear. The company also claims a number of firsts: the first company to successfully bring fashion-coordinate groupings to the mass market, the first to produce and mass-market a school uniform line for public schools, and the first to offer guaranteed next-day UPS shipping.
How is this wealthy family entitled to more money than anyone else?
In his victim impact statement, Sutton states his victimization came from legal fees his father [and after he died, his estate] paid in defense of a federal civil case in the United States District Court for the District of New Jersey after NXIVM sued.
It is the famous case of Nxivm Corporation, et. Al., v. Morris Sutton, Rochelle Sutton, the Ross Institute, Rick Ross, Stephanie Franco, Paul Martin and Wellspring Retreat, Inc.
Morris and Rochelle died before the case concluded in 2018 following an agreement by all parties that the case should be dismissed. NXIVM withdrew their claims against the defendants and Franco [the daughter of Morris and Rochelle Sutton, one of the heirs] dismissed her counterclaims against NXIVM.
The basis of the lawsuit, which lingered before the courts for 15 years, was Breach of Contract, Misappropriate of Trade Secrets, Product Disparagement, Interference with Contractual Relations, and Copyright Infringement claims.
The theory that the legal fees they paid in conjunction with the lawsuit make Suttons victims is based on the fact that Raniere was found guilty of, among other charges, Racketeering Conspiracy and that Racketeering Act 6 involved this lawsuit. Act 6 was “Conspiracy to Alter Records for Use in an Official Proceeding.”
A video was altered by NXIVM that was used in the civil case. Ironically, the government is recommending zero in restitution for Rick Ross.
The Case Against Franco and Rick Ross
In 2003, Nxivm filed suit against Stephanie Franco, a former Nxivm student, and Rick Ross, a so-called cult deprogrammer. The lawsuit alleged copyright infringement and centered on a claim that Franco violated a non-disclosure agreement by providing Nxivm course materials to Ross, who published them on his website.
Franco was trying to persuade her brother, Michael, to leave Nxivm and contacted Ross for help.
In 2008, Franco’s attorneys requested Nxivm produce certain videotapes in discovery to support their claim that the Nxivm curriculum contained false statements and violated state consumer protection laws. In June 2008, Raniere told Mark Vicente, a high-level Nxivm member, and several other Nxivm members, to alter videotapes and to remove certain segments from them without having the videotapes appear altered.
Clare Bronfman helped Vicente alter the videotapes to remove content, including segments in which Nancy Salzman made unsubstantiated health claims about Nxivm’s curriculum. These altered videotapes were produced in discovery by Nxivm’s attorneys with the false claim that they were provided in “unedited fashion.”
Why Not Help the Suttons?
In arguing against giving the Suttons almost $3 million, Raniere’s lawyers wrote, “The foundation of the civil case is wholly separate and distinct from the government’s case in this [Raniere criminal] matter… Valid civil claims about the ESP [Executive Success Programs AKA NXIVM] course material being distributed online does not create a nexus for J.S. [Sutton] to be a victim, who can recover restitution to the tune of 2.8 million dollars in this matter.
“… the [civil] case was dismissed pursuant to … an agreement between all the parties. The nexus of these allegations that tapes had ‘remove[d] content, including segments in which Nancy Salzman made unsubstantiated health claims about Nxivm’s curriculum, does not rise to the level of deeming J.S. a ‘victim’… The allegations set forth do not establish that Defendant Raniere caused J.S. any losses, and that such losses were in any way related to the charged offense conduct. There are thousands of other factors that must be considered when a fifteen-year litigation is stipulated among the parties to be dismissed. There are appropriate civil rules and procedure in place for this alleged behavior…
“Respectfully, J.S., as an individual or entity, is one whom the Government has not established that the individual’s loss or damage was the direct and proximate result of the defendant’s criminal conduct convicted of to support an order of restitution…
“Simply put, the Sutton losses were not caused (1) by the specific conduct that is the basis of the offense of conviction in this case, and (2) by conduct committed during an offense that involves as an element a scheme, conspiracy, or pattern, in this case.”
Well, that’s what Raniere’s lawyers say – that the Sutton family does not deserve millions in restitution – but the prosecution disagrees.
Now it is up to the judge.
[…] recommendations are accepted by the judge. Per the government’s recommendation, Sutton will receive about half of the victim’s fund, to reimburse his late father’s estate for legal bills expended in civil litigation with […]
[…] This is in response to the post, Government Wants Almost Half of $6 Million in NXIVM/Raniere Victim Restitution to Go to Suttons, a F… […]
I don’t know the reasons for it. If, say, 20 people lost millions from vexatious litigation, they should equally or proportionately be paid (If they have chosen to claim) surely? Or perhaps some are unable to prove losses because they did not keep their paperwork.
It is never simple who gets what: e.g., in the UK, if you kill someone earning millions a year, then the sum the family can claim or can be claimed on the insurance is the loss – the millions a year whereas if you kill a 2-year-old who earns nothing, then the sum is obviously less as the income stream it generated is zero. That does not mean we don’t think a life is a life. It is what just compensation is for the loss. If I die, my family loses their main income source for the next 20 years. If my children die, that is not the case.
Is Alex Jones so crazy now????
Someone was right…I just can’t mention his name.
Twilight of the Blood Cult
Tell me, again, why Trump and Giuliani received the COVID-19 vaccine?
If Covid-19 is a hoax and the vaccine is dangerous…..Why then would the greatest United States President of all time participate in a dangerous hoax?
Shadowstate “come out and play!”
Please answer the question. Back up what you say. Give us a rebuttal defense.
“Come out and play” is a reference from the 1979 movie “The Warriors”.
Salem Witch Hunt?
Are you for real or are you pulling our chains?
Pay attention. Don’t give Sutton a dime. Kristin Kreuk is the victim. If Sutton gets $2.8 million, then Kristin Kreuk deserves $17 million.
Sultan is right but he don’t deserve Kristin. I would defend her way better than him.
I will challenge Sultan to an Arab duel to determine who is the more worthy man
Sultan back down. Stand aside.
Kristin Kreuk is mine.
As always: money makes money.
“Most of the alleged victims are going to get zero, based on the prosecution’s recommendation to Judge Nicholas G. Garaufis.”
Really? How interesting! Is this fact or speculation?
The Nxivm suit against the Suttons (and so on) seems to be coming back to bite Clare’s six million or so dollars of recompense. This is good.
I have read the Nxivm lawsuit against the Suttons. It is very revealing but more so now, due to the Raniere conviction and five plea bargains from the groupies. Nxivm represents itself with very self-righteous “linguistics” throughout their make-belief martyrdom about the Suttons.
Just because some people have financial assets, that does not cancel their right to seek financial compensation for being pursued by a bunch of cult hogs.
Mr. and Mrs. Sutton not only stood up for their two children who had been drawn into Nxivm’s self-help crappola, they stood up for themselves as well.
There’s nothing at all unreasonable about seeking fairness, whether you’re poor or wealthy or anywhere in-between.
The Suttons started somewhere once upon a time, too. The garment industry, the needle, thread, cloth and scissors and hard work. Respect.
Excuse me. Make-believe. It is time to play both pinball and the Bolero.
I support Sutton. But 117 victims about 25 get something.
RE DOJ’s Compensation Request:
A special compensation request for an outside party. Wherein lies the reciprocity?
Who is Joe Sutton connected to or does his law firm have some connections?
I wonder who directly gave Mark J. Lesko his orders/instructions…
….Was it a bureaucrat or a politician? Then again maybe Lesko was acting on his own.
What say you K.R. Claviger?
I believe the other readers besides myself would greatly appreciate you sharing your opinion and insights with us.
Right when I thought this Nxivm saga would have a smidgen of a happy ending, the god damn government, turns robs the victims.
You’re starting to sound as cynical as Bangkok and Shadow State!
After all of the stories where NXIVM whistleblowers were treated as criminals by the police and prosecutors, did you really expect a happy ending?
America has few happy endings in its future.
I said “smidgen of a happy ending”. True happy endings only exist in fairy tales and massage parlors.
From Spring 2018, I knew that the NXIVM story would not even have a smidgen of a happy ending.
And when people complained that the government should do more to protect victims, my response was that people should protect themselves and not rely on the government.
Needless to say, my response was not appreciated.
As for your comment that happy endings only occur in massage parlors, I will take this opportunity to inform you that one of Allison Mack’s relatives is a Licensed Massage Therapist, as opposed to Allison Mack who is an Unlicensed Massage Therapist.
Of course, Allison gives Full-Service Massages.
—Of course, Allison gives Full-Service Massages.
Tell the truth! If you got to see a blue flame and absorb spiritual energy, wouldn’t you give full body massages?
—Needless to say, my response was not appreciated.
When was that?
Re ‘As for your comment that happy endings only occur in massage parlors, … ‘
Why not also in a torture dungeon, as planned by Vanguard and Allison Mack, who had already ordered ‘equipment’ for it? Is it not always every time a great pleasure for sadists to inflict torture and pain on other people. And thereby themselves sexually stimulated, their sexually perverse and repulsive sadism can live out and realize.
Anonymous, April 9, 1:02 am
What are you saying? I don’t get it.
Haroon still wants to pork Kristin Kreuk’s poon.
Sultan’s tweet never mentioned Kreuk or her poon.
Why are you so obsessed with fantasizing about a Muslim having sex with her? Can’t you get it up without this image? Sad.
So says Bangkok of Six
Are we about to invent new names for Bangkok? How about Bang Kook.
Nah. How about BangKookery?
Actually, you’re only about 2 years late to the party, my friend, as Empress Heidi already came up with this name for me (2 years ago).
‘BangCock’ is not bad, though it’s not terribly clever. Plus it has already been overused and has worn out its uniqueness.
Always defer to Bangkok.
Bangkok is rarely wrong.
Bangkok upsets so many people because his posts are rich with nuggets of TRUTH which are hard for people to accept. Especially about Kung-Flu.
How about BalckChalk?
May I ask, what may seem to be a rhetorical question? Why publish this if it’s not been decided upon as of yet?! And to what end is it important to mention the exact dollars and cents of some of the requests made for restitution by the victims?! I find this to be unnerving to even publish. Let the Judge make the ultimate determination of restitution and respect the privacy of the victims impacted. Seriously? Wtf?!
Kristin Kreuk should get a big piece of the pie. She suffered a lot and this website made it worse. It’s obnoxious that KK gets less than Sutton family.
By that reckoning, Shah Isbad Gonad, the people who watched Kristin Kreuk and Allison Mack in “Smallville” deserve all of the money.
It is amazing how utter trash lovingly known by the masses as “celebrities” monopolise attention instead of the history of science and current scientific endeavours. As someone said, if you don’t understand science, try religion. The masses, however, have diversified their interests by adding some more pure garbage to their already busy existence.
You gotta love them!
Of course you are a troll…. but… if hypothetically Kreuk was on this list, as a ‘victim’, based on what the lawsuit states, that would be really, really, wrong. In the space of one month, she was named in the Albany Times Union series of articles that exposed a lot of Nxivm crimes and wrongdoing, Joe O’Hara’s lawsuit, naming her as a ‘likely future defendant’ and the articles by John Tigue that exposed the Necker Island trip she attended that spoke of Nxivm financial schemes.
She was thanked in May 2015 for “encouraging” someone on his cult course that week, showing she chose to ignore everything that was out there and still supported the cult. Ergo, no claim to victimhood. I would guess a lot of people on that list are just opportunists. Sarah Edmondson made a lot of money through the cult, ignoring everything that was out there and she is looking for another Nxivm pay-out. Not good.
Sutton deserves every penny. For 15 years, Keith sued this poor man and he went to his grave with this lawsuit hanging over him. His wife died. Keith still suing. No respect for the dead.
Then Keith took their son Michael away and made him join the cult. So sad. Right this wrong. Give Morris’ children their due.
This article should never have been published. Now the judge might not give him the money. Very wrong move. Frank
Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha!
All of the suckers who thought they would get rich off of the putrid carcasses of Keith Raniere and NXIVM just got screwed over by the government.
While it is true that Rick Ross and the Suttons were hurt by Raniere and NXIVM, most of the victims will walk away holding empty bags.
Thank you, Uncle Sam!
Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha!
My advice to you folks is to contact Attorney Neil Glazer and join the civil RICO suit he has filed against NXIVM and its leaders.
Neil L. Glazer
Neil L. Glazer joined the firm in January 2000. Neil received his B.A., summa cum
laude, from the University of Pennsylvania in 1990, and his J.D., magna cum laude, from
Harvard Law School (1993).
“Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha!
All of the suckers who thought they would get rich off of the putrid carcasses of Keith Raniere and NXIVM just got screwed over by the government.”-Shadowstate
Somewhere in heaven our magnificent Führer is laughing with you. Sutton is an Anglo/Aryan name unlike the defendant vermin. The Führer sends his love!
Are you still living in fascist Georgia or was it Chicago you reside?
Actually, and not that it matters, but the Suttons are Sephardic Jews/
You know the saying.
The garment trade, sometimes called the rag trade, is heavily Jewish.
There is nothing wrong with legal immigrants of all backgrounds earning a fair living.
It is the American Dream.
I might add that Rick Ross is Jewish.
…and so was Jesus
Shadow, I’m glad you have decided to defend God’s chosen people.
April 8, 2021 at 8:31 pm
Shadow, I’m glad you have decided to defend God’s chosen people.”
I try to defend all people of goodwill.
Gentile and Jew.
And I have a cousin who married a man of Jewish heritage whose family owned a haberdashery, a men’s clothing store.
The man’s family had converted to Christian Science.
I have two first cousins once removed who are of Jewish heritage.
And Keith is Christian
Georgia’s proposed election laws are about the same as Delaware’s and New York’s.
This might shock you but when I was in college I had numerous conversations with left-wingers, particularly Trotskyists, and read Marx’s “Communist Manifesto.”
Antifa and BLM are both Marxist-Leninist movements.
‘Wait a cotton-picking minute’ are you sayin the Yankee state of New York is more discriminatory than our beloved
Peach State? Well, Shiver me timbers! The damn Carpet Baggers are hypocrites!
Why time is Dragnet and Gun Smoke on tonight?
Here’s some action for you in today’s news:
BLM Communists storm the Iowa State Capitol in Des Moines
Activist gets arrested after a Black Lives Matter-crowd forced their way into the Iowa State Capitol
Have you heard about how easy it is to change or alter your name in America?
Kindly stop disrespecting the prosecutors, Frank.
Tanya Hajjar is supposed to be your ally.
You had no problem letting Toni Natalie (a known liar) ask the judge for a ton of money, without raising so much as a fucken PEEP.
Why? Because you’re trying to remain friendly with Neil Glazer. You’ve sold out your principles.
Also… Barb Bouchey asked for TONS of money even though she spent years assisting Keith to keep his ownership of certain money/assets hidden from the IRS.
Hint: If Barb Bouchey had followed IRS regulations (as his investment agent), she would have disclosed to the IRS that Keith had ownership of certain money/accounts/assets under her control.
The $1.5 Million dollar ‘loan’ was a bogus loss. It was a ‘gift’ she gave to Keith —- because she LOVED him and worshipped him.
He did not steal it from her. She gave it to her Vanguard.
My main point is that you have no problem with Irish Barb Bouchey asking the court for millions, even though she assisted Keith to do harm for many years.
You’re an asshole, Frank.
You’re guided by ‘bias’ and ‘friendship’ with these ex-NXIVM players.
Truth is, the Sutton family LOST that money for real.
The Sutton family actually LOST REAL MONEY equal to that amount, —– while the other alleged victims spent years helping Keith to perpetrate NXIVM misdeeds.
You’re not being objective, Frank.
Just like how you now view Allison Mack as a victim —– even though she’s never repudiated Keith even one time. You’ve never read her courtroom statement. It did NOT repudiate Keith. It used the word ‘misguided’ once and that was it. It didn’t even say that Keith was misguided, it said that SHE was misguided in following his teachings, without ever saying that his teachings were bad or repudiating them.
Yet you’ve LIED to your readers by saying that Allison REPUDIATED Keith, LOL.
That’s not a repudiation. You’re not much of a journalist for lying to your readers.
The Suttons deserve that money cuz they actually LOST REAL MONEY and weren’t a party to NXIVM’s misdeeds, like the many other cretins who are now pretending to be victims.
Neil Glazer is the only hope many victims will have to recover anything.
Do you truly believe Frank lied to the readers? Are there more questions than answers?
I am wondering what you would be willing to do to go on a date with Lauren Salzman.
Would you be willing to offer DOS worthy collateral; have LM branded on your ass; sell your soul; or play adult post-office with Sultan?
You, Frank and Empress Heidi like to exaggerate my alleged fondness for Lauren Salzman, by only selectively remembering things. So I’m gonna throw a few facts in your faces. 🙂
Fact is, I’ve always stated that although she’s a lovely woman, she’s got an obscenely huge nose which needs fixing before she’ll be able to secure a proper husband.
In fact, before the trial, I was calling for Moira Penza to offer Lauren a free nose job as part of her plea deal for helping the government’s case.
Also… After seeing a photo of her standing next to Allison which revealed her super-short height (barely 5 feet tall) —– she’s not exactly prime material or a ‘dream girl’. Just like your own midget Sicilian wife, I’m guessing. 🙂
However… I bet Frank got major wood when he saw Lauren back in 2008, while visiting his Prefect for daily meetings. 🙂
As for Frank being a lying sack of shit…
I do think Frank is an asshole for claiming that Lauren deserves a harsher punishment than Allison —– especially since it was Lauren who fully repudiated Keith while Allison never repudiated Keith at all.
I think Frank is one of the most biased assholes on God’s green Earth.
Do I hate Frank as much as I hate Claviger? Nope.
Claviger is THE biggest asshole on God’s green Earth and if I ever encounter that mother fucker in person, I’m gonna throw a Coconut Cream Pie in that geezer’s face.
Claviger is one of the biggest pussies I’ve ever seen. He’s terrified of the virus and wants everybody else to sit in their homes shitting their pants 24/7 — and he gets mad when people don’t do that. LOL.
It’s hard to respect a grown man with that kinda ‘pussy’ attitude. He’s a spineless, fraction of a man.
Have a nice day. 🙂
BTW: I was just being sarcastic — about the pie in the face, and about hating Claviger and Frank. 🙂
I know that Frank understood that already (since he’s a sharp guy).
But a flaming liberal — like Claviger — does not always use common sense when reading such comments.
Don’t get me wrong, I truly think he’s a pussy and I enjoy arguing with him. LOL.
But he’s no different than the millions of other liberal pussies. 🙂
I always admired Bangkok for showing his massive ability to respect and empathise with fellow human beings.
And… it’s so heart warming how he does it again and again…
P.S. I think the coconut pie threat/suggested assault is real in spite of assurances of the opposite. 😋
Most Pious Bangkok-
Nippy’s wife calls him Nippy.
It’s like your parents calling you F**k T**d.
There’s no need to fret or defend your
loin-lust for Lady Salzman, my randy friend. We’ve all have craved the forbidden fruit at one time or another. Rumor has it Nutjob lost his virginity to the cafeteria lunch lady.
I will never forget the tender touch of Mrs.Lopez…
My guess is Bangkok would choose the branding….
“We will NOT publish any woman’s name whose identity was shielded by the court unless the woman herself chose to identify herself publicly.]”
Frank, do you think there is anyone on the list who should not really be there?
If it is a six million dollar pay out, split between 117 people and hypothetically, everyone gets an even share, that is $51,282 of money in each one of their pockets.
Do you think there are any people on that list, privileged and rich celebrities for instance, who should not receive a penny?
If so, it would be terribly arrogant of them to be on that list, seeing as they are already filthy rich, chose to hand over money which would be peanuts to them and then they get victim status and a free pay out, while others who have gone broke (by choice) get nothing.