US Attorney, FBI and IRS Speak Out About Nancy Salzman Sentencing

Nancy Salzman heads to court for her sentencing.

The following was sent to Frank Report and other media by John Marzulli, Public Information Officer for the U.S. Attorney’s Office for the Eastern District of New York.   The photos and captions are Frank Report additions.

NXIVM PRESIDENT NANCY SALZMAN SENTENCED TO 42 MONTHS’IMPRISONMENT FOR RACKETEERING CONSPIRACY

Nancy Salzman, also known as “Prefect,” the former president and co-founder of Nxivm, was sentenced to 42 months’ imprisonment and ordered to pay a $150,000 fine by United States District Judge Nicholas G. Garaufis for racketeering conspiracy, including predicate acts of conspiracy to commit identity theft and conspiracy to obstruct justice.

Salzman agreed to forfeit several real properties, more than $500,000 in cash and a Steinway grand piano.

Keith Raniere plays the Steinway Grand Piano now owned by the US government. It was located at Nancy Salzman’s house, where Raniere often stopped to play it. The piano was purchased by Clare and Sara Bronfman for, as I recall for around $90,000,

Some of the $500,000 cash seized at Nancy Salzman’s home.Salzman pleaded guilty in March 2019.

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI) announced the sentence.

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York,

“In her misguided loyalty and blind allegiance to Keith Raniere, the defendant engaged in a racketeering conspiracy designed to intimidate Nxivm’s detractors and that inflicted harm on Nxivm’s members,” stated Acting U.S. Attorney Kasulis. “Today’s sentence holds the defendant accountable for her crimes and we hope that it brings some measure of closure to the vulnerable women who were victimized and abused.”

Ms. Kasulis also expressed her appreciation to the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.

Assistant Director in Charge Driscoll

“Serving as Raniere’s right hand for more than a decade, Nancy Salzman’s conduct supported Nxivm’s objectives to recruit victims, stave off critics and alter evidence connected to a federal lawsuit. Today’s sentence does little to erase the suffering of Nxivm’s victims, but it serves as another reminder of the government’s commitment to seeing this case through to the end,” stated FBI Assistant Director-in-Charge Driscoll.

“Today, Nancy Salzman was held accountable for the role she played in this devious criminal enterprise,” stated IRS-CI Acting Special Agent-in-Charge Fattorusso. “As with many conspiracies, the financial aspects of this investigation required the expertise of IRS
Criminal Investigation to unravel the layers of falsehood and deceit.”

“Salzman was essential to the NXIVM criminal enterprise, not merely a peripheral co-defendant. As the co-founder with Keith Raniere, Salzman had immense influence on NXIVM, which included conspiracy to commit identity theft and conspiracy to alter records,”
stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York’s strong relationship with its federal partners allows for the seamless and effective investigations that lead to the arrest, prosecution, and sentencing of those involved.”

For more than a decade and until her arrest in July 2018, Nancy Salzman was a high-ranking member of a criminal enterprise led by her co-defendant Keith Raniere. The primary purpose of the enterprise was to promote Raniere and recruit individuals into various
purported self-help organizations that Raniere founded, including Nxivm and affiliated programs, and a secret society within Nxivm called “DOS.”

Between August 2005 and November 2008, Nancy Salzman, along with Raniere, participated in the unlawful surveillance and investigation of perceived critics and enemies of Raniere and Nxivm. As part of the scheme, Nancy Salzman agreed to unlawfully surveil these
perceived enemies in an attempt to gain advantage over them and stop them from criticizing the company.

The FBI raid the home of Nancy Salzman at 3 Oregon Trail on March 27, 2018, one day after Raniere is haled into court in Texas on sex trafficking charges. [Photo courtesy Albany Times Union].
On March 27, 2018, a search warrant was executed on Salzman’s residence. Law enforcement agents recovered a box containing purported private banking information of many individuals perceived to be critics and enemies of Raniere, including journalists, judges and an
expert on cults.

The defendant also conspired to obstruct justice by altering videotapes that were to be produced in discovery in a federal lawsuit in New Jersey. In 2003, Nxivm and affiliated entities filed a copyright infringement suit against a former Nxivm student, her parents and a cult
deprogrammer. In 2008, attorneys representing the former student filed counterclaims against Nxivm alleging that the defendant had misrepresented the nature and effectiveness of Nxivm’s programs. During the course of the pending litigation, the defendant and others agreed to alter the videotapes to remove segments that they believed would have supported the former student’s claims and to make it look as if the videos were unedited. These altered videotapes were then produced in discovery by Nxivm’s attorneys with the false claim that they were provided in “unedited fashion.”

Raniere was convicted by a federal jury of racketeering and racketeering conspiracy, sex trafficking, attempted sex trafficking and sex trafficking conspiracy, forced labor conspiracy and wire fraud conspiracy. On October 27, 2020, Raniere was sentenced to 120 years’ imprisonment.

On September 30, 2020, Nxivm executive board member Clare Bronfman was sentenced to 82 months’ imprisonment for identity theft and immigration offenses. On April 19, 2019, Kathy Russell, a bookkeeper for Nxivm, pleaded guilty to visa fraud and is awaiting sentencing.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Kevin Trowel are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Criminal Division’s Asset Recovery Section is handling forfeiture matters.

The six NXIVM defendants, Upper Row: Kathy Russell, Keith Raniere, Nancy Salzman, LowerAllison Mack, Lauren Salzman, Clare BronfmanThe Defendant:
NANCY SALZMAN (also known as “Prefect”)
Age: 67
Clifton Park, New York

Defendants Previously Sentenced:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 61
Waterford, New York

CLARE BRONFMAN
Age: 42
Clifton Park, New York

ALLISON MACK
Age: 39
Brooklyn, New York

LAUREN SALZMAN
Age: 45
Clifton Park, New York

 

Defendant To Be Sentenced:
KATHY RUSSELL
Age: 63
Clifton Park, New York
E.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)


About the author

Frank Parlato

44 Comments

Click here to post a comment

Leave a Reply

  • It’s so funny. Those DOS girls whine and complain about women needing big girl pants and they can’t be treated fairly, and how things would be different if they were men etc.

    But here you truly have it! A mostly women’s criminal enterprise that is being held to public account regardless of their gender!

    It’s fantastic!

    I mean, I guess it’s jail pants, not big girl pants exactly, but hey? The bottom line is, they are receiving just as much attention as a man’s auto theft gang or investment scheme or whatever else men do.

    Nancy is totally guilty of racketeering and messing with people to a criminal degree. She supported a man with a vision to trap humans, catalog, and enslave them!

    Just read this guy’s patents and you’ll see he is completely deranged.

    Some people are saying that these women took plea deals because they were weak but I’m not so sure.

    And I think this is an excellent proof that women in society actually don’t get to cry their way out of jail, after all.

  • So much censoring from an alleged free speech advocate. No profanity in my comments. No slurs. Just a friendly discourse with a fellow commenter.

    Must protect Nicky Clyne. Why? She doesn’t believe in “damseling”. Nicki wants to be a strong, non-victim. It is against Nicki’s principles to be coddled by a man. And it’s against your professed beliefs to needlessly censor.

  • I am glad they mention the 2003 altering of tapes as thsi is not just all recent things – the abuses and breaches of the law have gone back decades.

  • I find it very interesting that they make mention of quite a few of the crimes – not just framed as allegations – committed in the NDNY, where nothing has ever been charged.

    • Yup. NDNY is as much to blame as Raniere himself. Those ratbastards… If they somehow have to pay, I’d feel a lot better about this debacle.

  • So, Hajar really said that Nancy’s cooperation [what cooperation?! Did I miss something?] was a consideration for her to get a lesser sentence? WHEN and HOW did Nancy EVER cooperate? Wow, Hajar, what’dya take Stone up on his series offer already?

    BTW, if anyone really wanted to succeed in setting me up as a crackhead…I was thinking today would be a good day to try it out. Not a single moan from any Proud Boy types even over the blatant sexism that is going on here, at the very least. Not that it’s got anything to do with any politicos Nancy never ratted out…so far. Which is why, following Epstein, I give Nancy fairly high odds on not surviving very long in prison. She is just SUCH a blabbermouth. Ella habla mucho cheesmo, verdad?

  • Also, very apropos to Nancy’s story:

    https://www.bing.com/videos/search?view=detail&mid=18355935E097389EAF5918355935E097389EAF59&q=Richard Gere Chicago&shtp=GetUrl&shid=410d8049-b993-4e6c-bf83-a35b48387de3&shtk=Q2hpY2FnbyB8IOKAmFRoZSBQcmVzcyBDb25mZXJlbmNlIFJhZ%2BKAmSAoSEQpIC0gUmVuw6llIFplbGx3ZWdlciwgUmljaGFyZCBHZXJlIHwgTUlSQU1BWA%3D%3D&shdk=UHJlc3MgcHVwcGV0ZWVyIEJpbGx5IEZseW5uIChSaWNoYXJkIEdlcmUpIHBvcnRyYXlzIFJveGllIChSZW7DqWUgWmVsbHdlZ2VyKSBhcyBhbiBpbm5vY2VudCB2aWN0aW0gdG8gYSBndWxsaWJsZSBhdWRpZW5jZS4gSW4gdGhpcyBzY2VuZTogUm94aWUgKFJlbsOpZSBaZWxsd2VnZXIpLCBCaWxseSAoUmljaGFyZCBHZXJlKSBBYm91dCBDaGljYWdvOiBSb3hpZSBIYXJ0IGlzIGEgc21hbGwtdGltZSBjaG9ydXMgZGFuY2VyIHdobyB3aWxsIGtpbGwgZm9yIGZhbWUuIEFmdGVyIGRvaW5nIGp1c3QgdGhhdCwgc2hlIGxhbmRzIGJlaGluZCBiYXJzIGFsb25nc2lkZSB2YXVkZXZpbGxlIHN0YXIgVmVsbWEgLi4u&shhk=PSuMFnuq%2BMKlKP%2FuNZ7V5sMsVtD9PCD9Blk1VLJ42xw%3D&form=VDSHOT&shth=OVP.JOXbxfr-2Nmv9MPPJc8uhgHgFo

  • OMG, I’m turning into Shadow State! Heeeeeelp!! And, now, ladies and gentlemen, here’s how they’re getting away with MURDER:

    https://www.bing.com/videos/search?view=detail&mid=D4B86E0EA216D44B1B02D4B86E0EA216D44B1B02&q=Chicago Musical Razzle Dazzle&shtp=GetUrl&shid=d547deaf-6ccb-4bd4-9c27-78ec72e09fec&shtk=Q2hpY2FnbyAtIFJhenpsZSBEYXp6bGU%3D&shdk=Q2hpY2FnbyBGaWxt&shhk=CDBwASMom%2F78cpJghSqro3GIKcTEpEEEr5yrjfVvhlY%3D&form=VDSHOT&shth=OVP.mgm3VMX-8XqNn1SKsDFACAHgFo

        • Nope…But Judge Garaufis has ordered her attorneys to file an explanation for every redaction they made in the last Sentencing Memorandum they filed. I think we won’t see the judge’s Sentencing Memorandum until they file that document.

  • Unless she has some cash hidden somewhere, this has to leave her broke

    Her daughter Michelle & son in law Ben will have to move. They live in one of the now government-owned houses

    Is Nancy worried that if her mom gets put into a care facility it will eat through any inheritance she might get?

    She didn’t seem to care much about her parents while she was in NXIVM, why now?

    It’s even harder to run your EM business from prison. All your calls are monitored and expensive

    Can you imagine Nancy turning around and barking at someone to give her five more minutes because she almost has someone to get the meaning of their disintegration? She is the Prefect you know!

    • It’s unlikely that she has got any cash stashed – the government would have come down on her if prosecutors, the FBI or the IRS couldn’t account satisfactorily for most or all of the money and thought she still had some of it.

      In cases like this, people always speculate that those involved must have made escape plans and hidden money. But the nature of the perpetrators in these cases is that they don’t expect everything to fall apart, and don’t plan for it – they wouldn’t have ended up doing the things they did, and ended up in the situation they did, if they thought like normal prudent people. The cash clumsily hidden around the house, not even in safes or the sort of hidden compartments drug dealers use, speaks to the behavior of what is referred to as a “disorganized criminal.”

      And if they had planned that well, they’d be living the high life somewhere that doesn’t extradite to the US, not scraping by or in prison. There is no case I’m aware of where it ever turned out that one of these figures had actually done what people might think they’d do.

  • Frank, you need some articles from his past lovers, anonymously, of course, about how they were mentally, then physically, seduced. How did they fall for it, what about the blocking radar story, what lines of shit he gave them, and why they were so gullible.

    I don’t think the FR covered that angle. You have the victim impact statements but those are after the fact statements. I’m talking about what happened BEFORE, the lead-up. What was he like NOT in front of everyone?

    In the back of my mind, I remain puzzled how so many beautiful, successful women got taken in – and why so many stayed.

    There are lessons to be learned.

    • That is always the fascinating bit about cults. I think some of the “sexts” between him and some of the women show a bit about how they were sucked in but there will be much more.

      • Jane, the “sexts” were telling. But I can tell you right now, if I ever said some of that crap to my wife or any other woman in my life, they would have looked at me like I was a weirdo and stormed out.

        A group blow job to recharge my energy?

        WHO can fall for that CRAP ? Yet they DID.! DOZENS AND DOZENS.And I GUARANTEE you some of the ‘ Manson girls” still in his tribe believe it!!

        Block radar? A week long birthday party? Blue light having sex with me? Bowing to my photo?

        Assholes fell for it, assholes stayed, assholes still want him back.

        There is a psychology here….I am absolutely flabbergasted.

    • Anonymous, here are my guesses as to how the women were trapped:

      A) Some may have been confused by his word salad and because of his reputation as the smartest man in the world with super high IQ, they may have believed his word salad was meaningful and may not have been able to identify it as just a bunch of themes and loose associations all strung together.

      B) Keith was selfish and manipulative and power-hungry. You can spot this in his videos with Allison and the letters he wrote about the other defendants. It’s very, very obvious that the themes of the word salad speak of his superiority and focus on the humiliation of these women. Mark Vicente tells the same story. He too was humiliated by this guy.

      C) Some of the women created their own meanings for the word salad. In particular, those who resonated with his themes of cruelty and superiority may have created an internal narrative that justified these qualities in themselves.

      Bottom line, I have a hunch that this guy is mentally ill. My guess is that most normal people (being used to interacting with normal people) would have a difficult time understanding what they were dealing with and identifying him as unwell. Especially if he appeared mostly normal and had other people around him praising his virtues.

      I think many probably also enjoyed the sense of community and eliteness that was prevalent in the group as well.

      Sorry to the nicer ones, but I think anyone that sets out to control as much of the world’s wealth as possible and preaches a no victim mentality is a jerk. They could have banded together to make an actual difference in the world but all they really did was serve themselves (and/or maybe the Mexican elite?).

  • Unrelated to the article, but can Frank Parlato, or anyone in the know confirm if celebrity chef Anthony Bourdain was involved in NXIVM in any way?

    • The judge probably thought that without Clare, NXIVM would’ve died after a few years of existence. It was only the Bronfman name and funds that enabled NXIVM to exist for well over a decade.

    • —She’s [Nancy] soooo bad…but only 3.5 years?

      Nancy hopped on the plea-bus first. She made a plea-bargain and a Mea Culpa so the DOJ cut her a deal.

      Conversely, Clare Bronfman, made no act of contrition and signed a quasi plea deal.

      • Based on my review of the available records, it does not appear that Nancy entered into any “plea deal”. Instead, she agreed to plead guilty to one charge – i.e, Racketeering Conspiracy – in return for which the Feds agreed to drop the other charges that were pending against her.

        • In retrospect, the Feds were far too generous in dropping serious charges against these defendants in return for their guilty pleas on lesser ones.

          Had they known Raniere’s trial would end with slam dunk guilty verdicts on every single one of the charges against him, I wonder if they’d have prosecuted his codependents more aggressively. Maybe then these reprehensible criminals would be looking at real jail time. Like 20 years instead of 3.

          • The EDNY prosecutors were limited by what charges they could actually prosecute in the Eastern District of New York. Don’t forget that three of the original charges were dismissed because of a lack of jurisdiction – and referred to the NDNY for prosecution.

            Where the Feds screwed up is having a crew of prosecutors in the NDNY who were bribed, compromised, or afraid to take on a defense team funded with Bronfman money. That’s where any anger should be directed with respect to relatively light sentences – and lots of people getting away without being prosecuted.

  • “Misguided loyalty and blind allegiance” — what a crock of shit! And, what a show of tremendous unity and merciful, wrist-slapping force against a woman who, after all, just hooked up with the wrong man! …3 years of standard AMA medical treatment on a prison diet for that cancer is, however, pretty much an early death sentence. I’m taking solace in that.

  • As you see here, Clyne’s tweet — that the victim statements didn’t have anything to do with Nancy’s crimes — is false. She is embracing her role as the Kellyanne Conway of NXIVM. You can imagine Clyne leading a press conference about NXIVM: No one with an opposing view will be allowed to dialogue. “Alternative facts” only.

    • Hahaha. Kellyanne Clyne. Nicki had the nerve to criticize a woman for blocking her on Twitter.

      Nicki and all her “free Keith Raniere” affiliate groups block ANYone and every one who politely pushes back on the false Nxium narrative.

      So hypocritical.

      My previous Nicki comment was blocked

    • You notice Nicki Clyne didn’t show up to state anything either way.

      She stays in the wings and lets her fingers do her talking where it is safe for her.

      She doesn’t have any skin in this game and now the entire leadership of NXIVM will be behind bars and they are banned from speaking with her.

      She loves her man, Keith Raniere, and wants him free so he can tell her what she can and can’t do like he did for years.

      Without him, she is really just kind of lost, dependent on Clare supporting her in the wings or living off what she got in her divorce from Allison.

      Come on, Nicki, do you think we are really that stupid, how do you support yourself? NYC is an expensive place to live and even with your acting skills, well who’s going to hire you now?

      • Nicki Clyne is one very confused, dumpster fire of a person. She’s not very bright. Very contradictory and increasingly desperate.

        Nicki is so dishonest, it becomes comical. She obsessively takes one element of the depravity of DOS and/or the cult-like behavior of Nxivm and tries to reframe it.

        A recent example:

        Women being branded with Keith’s initials is far less barbaric than plastic surgery.

        Ok. Sigh.

        When was the last time a group of women got plastic surgery in an apartment (No anesthesia) with a group of other naked slave women holding them down and recording it for a man’s pleasure? And they were lied to about what the plastic surgery would actually look like?

        Do I really need to further point out how a woman choosing a specific cosmetic procedure for herself – of her own volition performed in a hospital – is not the same as a male “grandmaster” ordering a “slave” to be deceived into having an amateur use a cauterizing pen near their pussy to carve his own initials into her flesh at Allison Mack’s condo while a bunch of naked weirdos holds her down spread-eagled & record it for him?

        Yeah. Great comparison, genius.

        Also. False argument. They can BOTH be barbaric. Is this that rational inquiry stuff hard at work? Haha.

        Plus, none of the dozens of creepy pervy DOS behaviors are stand-alone. It is the totality of the DOS and Nxivm/Keith Raniere insanity that makes them so heinous.

        And the apologists know that to be true.

        Nicki posts photos just begging for compliments from total strangers. Bragging about a youthful appearance. But No job. No career. No relationship or family of her own while pushing 40 is not child-like. It’s childish. There’s a difference.

        She’s incredibly self-aggrandizing. But what has Nicki actually accomplished? In almost 4 decades? How many times can she push the BSG goodwill? Which Nicki did not write. Or direct. Or even star in. That is someone else’s accomplishment and creation.

        The last shred of possible empathy I could muster for the hypocritical Clyne vanished forever when she chose to sic her mostly male Twitter followers on another woman.

        After Nicki has whined endlessly about being attacked on social media herself. And the woman (Lauren Wolfe) did nothing to Nicki. She did not even mention Nicki. What a nasty little twat Nicki Clyne has revealed herself to be.

        Susan Dones schooled her in a classy way though. That was fun to see.

        • No Integrity Nxians

          YES! NC tried to sic her weirdo followers on Susan Dones by retweeting her post and saying “you think my followers are too stupid to google” (or something close to that). She needed to feel protected and sheltered by that motley bunch. They’re really all she has at this point.

          Then on the local channel ad she posted, it looks like her hair is seriously thinning. She’s losing it. Not to mention, several leftovers are nowhere to be found for weeks.

About Frank Parlato

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 others in all five continents.

His work to expose and 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 docuseries “The Vow” and acted as lead investigator and coordinating producer for Investigation Discovery’s “The Lost Women of NXIVM.” He was credited in the Starz docuseries, 'Seduced,' for saving 'slave' women from being branded and escaping the sex-slave cult known as DOS.

Parlato has appeared on the Nancy Grace Show, Beyond the Headlines with Gretchen Carlson, Dr. Oz, American Greed, Dateline NBC and NBC Nightly News with Lester Holt, where Parlato conducted the first-ever interview with Keith Raniere after his arrest, which was ironic since many credit Parlato as being one of the primary architects of his arrest and the cratering of the cult he founded.

IMDb — Frank Parlato

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

Got A Tip?

If you have a tip for Frank Report, send it here.
Email: frankparlato@gmail.com
Phone / Text: (305) 783-7083

Archives