Part 3 Where Is the Collateral? Judge Orders Raniere to Return Collateral But Not Until Appeal Is Done – Which Could Take Years

MK 10's portrait of Judge Nicholas G. Garaufis

This is Part #3 of “Where Is the Collateral?”

Part #1: Where Is the Collateral? Frank Report Hunting Down DOS Collateral – Some Was Destroyed in 2017 – Most Was Not

Part 2 Where Is the Collateral? Raniere Claims He Doesn’t Know Where It Is — Neither Does the Government

Collateral is the thing that sunk Keith Alan Raniere.

Had he not demanded collateral and had he not had women branded on their groin with his initials (without bothering to let them know it was his initials), Raniere most likely would be walking free with one of his slaves in Clifton Park right now, prepping her for the boudoir, or with one or two of them at his sex lair, perhaps soaking in his hot tub or photographing them lying naked on his loft bed, or in their own home nearby on their pillowtop mattress, and not at USP Tucson serving a 120 year sentence in a colony of about 1,000 male sex offenders.

Those were the days my friends: Keith Raniere walking with one of his slaves – the oft-paddled Dani Padilla

In Part #2 of this series, we reported on the restitution hearing where Raniere was told he must pay some $3.5 million to 21 victims.

All told, Raniere did pretty well for himself. Twenty-one statutory victims is not a bad day’s work for a small-town grifter of any stripe. And even that considerable number was winnowed down mightily by the judge. Originally 100 individuals (75 women and 25 men) submitted claims as victims for restitution, seeking over $33 million from the man known to them as Vanguard.

Yes, Raniere was always a high roller (though somehow he always wound up losing) which is (and then again is not) what one would expect from the self-proclaimed smartest man in the world.

Keith Raniere iq

As for victims and their restitution, the US Deptartment of Justice recommended that the judge award about $6 million to 25 victims. Judge Nicholas G. Garaufis decided to narrow it down to 21 victims who should, he ruled, get collectively about $3.5 million.

As far as I know, and in keeping with his super intelligence, Raniere has not paid a dime of it to anyone.

But, still, it was collateral that made most of the victims “victims.”

“The trial record establishes that all or virtually all lower-ranking DOS slaves were victims of a conspiracy to obtain forced labor and that many of them were also victims of sex trafficking conspiracy, ” Judge Nicholas G. Garaufis explained.

He said, “The Court finds that any lower-ranking DOS member or ‘slave,’ whose commitment to DOS was secured by collateral and who engaged in a sexual act at the behest of a DOS ‘master’ is a victim of the sex trafficking conspiracy offense….  any lower-ranking DOS slave whose commitment to DOS was secured by collateral and who performed uncompensated labor or services at the behest of a DOS master is a victim of the forced labor conspiracy offense.”

It was collateral that forced them to have sex with the beast and work for free for their various masters, the judge decided.

The eight First-Line DOS Masters with their glorious Master in the middle. All other women but these eight who were in DOS were considered to be lower-ranking DOS slaves.

Because of the collateral, the judge ruled, Raniere “benefited from the expectation of DOS slaves’ constant availability….  the requirement that DOS slaves be perpetually available for their masters, and in some cases to Mr. Raniere, [which] facilitated the sex trafficking and forced labor conspiracies [and wire fraud conspiracy] by instilling in the victims a sense of subservience and a lack of agency that permeated every aspect and hour of their lives.”

Because of the collateral, they were forced to stay in DOS and consequently, the judge said he found Raniere “responsible for causing the full extent of DOS victims’ mental health care needs.”

And “Raniere has held a principal role in the causal process as the predominant inflictor of psychological injury.”

The judge also determined that Raniere got the collateral by hook and by crook.

The judge said, “lower-ranking DOS members were fraudulently induced to furnish property as ‘collateral,’ including, but not limited to, sexually explicit photographs or videos as a condition of their membership in DOS.”

As a consequence of it being fraudulently obtained, the judge demanded that Raniere return the collateral ruling “that all lower-ranking DOS members are statutorily entitled to return of their collateral.”

He ordered “Mr. Raniere to effectuate that return to the fullest extent practicable.”

When asked about the collateral, Raniere, of course, denied knowing anything about it.

He told Judge Garaufis, “I have never handled the collateral, do not know anything about it, do not have it.”

A legal argument then cropped up wherein Raniere’s attorney argued it would violate Raniere’s 5th Amendment right if he returned the collateral.

The judge agreed, though not eagerly, and stayed the order requiring Raniere to return the collateral until his appeal is finished.

This might take years.

Raniere is in the midst of an appeal. The government has not responded to his initial appeal and a supplemental brief may yet come from the Vanguard. After the government responds and Raniere replies, it may take a year or more for the Court of Appeals to decide on this matter.

If he fails, he may appeal to the US Supreme Court. And if he wins either at the Second Circuit or the Supreme Court, he very likely will get a new trial. That also might take years.

Judge Garaufis explained, “Mr. Raniere’s counsel raises the concern that requiring Mr. Raniere to locate and disgorge the victims’ collateral may violate his Fifth Amendment right against self-incrimination in the event that he prevails in his appeal and gains a retrial.”

“The Second Circuit has previously rejected the argument that an order directing a defendant to return ill-gotten property to victims, as required by the MVRA, violates the defendant’s Fifth Amendment rights.” See United States v. Bryser, 954 F.2d 79, 89, Second Circuit 1992.

“Even so, in an abundance of caution, the Court stays Mr. Raniere’s obligation to effectuate the return of the victims’ collateral until the exhaustion of his appellate rights on direct appeal. Within 60 days of the exhaustion of such rights, he must effectuate the return of all original and duplicate copies of DOS victims’ collateral or, to whatever extent such collateral has not yet been returned, file a letter with this Court establishing that he has made all reasonable efforts to effectuate the return of the collateral and setting forth a detailed plan and timeline for returning all outstanding collateral to the fullest extent practicable.”

In the meantime, the judge told Raniere to keep his mouth shut.

From the transcript:

THE COURT:..  I would…  counsel him [Raniere] not to speak on… whether he actually controls any of the collateral…

MR. FERNICH [Raniere’s lawyer]: I would echo that advice, for what it’s worth.

THE DEFENDANT [Raniere]: Okay.

Per Judge Garaufis’ order, Raniere must help get the return of “all the original and duplicate copies of their [lower ranking DOS slaves’] collateral” within 60 days after his appeal has been decided (If he wins the appeal and gets a new trial, the judge’s order will be moot).

But he does not need to return it during the stay until his appeal is done.

He does, however (in the event he has control of it) have to preserve it and not try to destroy it.

The judge said, “while such obligation [to return the collateral] is stayed, [Raniere must] preserve any original or duplicate copies of collateral that are within his dominion or control.”

In short, Raniere has to preserve the collateral until his appeals are done. Which might take years.

See how smart he is?  Not only did he not pay a dime to any of the victims, even the judge couldn’t force him to return the collateral, which he knows nothing about anyway.  Raniere, of course, says that collateral was only devised to make women more empowered.

Another victory for old Vanguard, and, of course, I hate to say it again, but this is stellar proof of it being wholly appropriate in this instance: Viva Executive Success!

MK10ART’s painting of Keith Alan Raniere in a place where he may very likely retire and spend the rest of his life.

Stay tuned for Part #4.

About the author

Frank Parlato

57 Comments

Click here to post a comment

Please leave a comment: Your opinion is important to us!

  • Suneel Chakravorty-

    Your claim that Booth lied about EXIF data, your so-called smoking gun, is going to be debunked shortly. There is a treasure trove of digital forensic evidence on the FAT32 formatted, 300gig hard drive. On the desktop the drive was attached to, Raniere was running XP with the SP2 – which came out in 2004. In addition, there were several later updates to XP, which left dated ‘artifacts‘. These data artifacts can help to date the JPEG of Camila, and show it was not altered.
    I would greatly appreciate it if you can verify that my technical specs are correct.

    Thank you!

    • Now, this is JUICY. Checkmate it seems Suneel. THIS is a big problem to solve and sounds like a response is needed from one of the top problem solvers in the world. Oh, wait, your guy is busy trying to solve the age-old mystical problem of the SHU 🤣

  • I’m going to drop a knowledge bomb here.

    I’m revealing hidden wisdom that no one in history has been able to comprehend until this very moment, other than my daughters who I taught this to when they were young:

    If your “friend” tells you it’s a good idea to send naked photos of yourself so they can be used as blackmail, don’t do it — this person is not your friend.

    Mind-blowing, right?!?!?!?!?!!?

    You can just mail me my Nobel Prize, I’m not interested in flying to the ceremony in Norway.

    • You forgot one key component to your hypothesis, Dr. Sage. It’s called the Vanguardian Principle, or Vanguardian Exception to our neighbors in the North. Basically, add the sentence, ” Unless the world’s smartest man, with powers to block police radar, oppose raindrops, and casting blue light in his bodily fluids asks you to.”

      That, my colleague, is why you will only be nominated for the Nobel.

  • Suneel Chakravorty-

    Your claim that you have a smoking gun showing that Booth lied about EXIF is going to be debunked shortly. There is a treasure trove of digital forensic evidence on the FAT32 formatted 300gig Western hard drive. On the desktop that the external drive was attached to, Raniere was running XP when the SP2 came out in 2004. In addition, there were several later updates to XP that left dated ‘artifacts‘. These data artifacts can help to date the JPEG of Camila, and help show it wasn’t altered.

    Before I release my forensic white paper, I would greatly appreciate it, if you can verify my technical specs are correct.

    Thank you!

  • Dazzlingly written, Frank, but you’re writing around the facts and taking pen jabs at thin air in this noble, collateral search to, of course, rescue the soiled damsels of NXIVM from the embarrassment of worldwide, spread eagle snatch exposure.

    [Whaddya think, NG, does Kreuk sport a slanted one? …Naw, she’s too wily, never fell for DOS herself…just set up her sucker Smallville co-star, Allison Mack, as the frontwoman, fall girl role they had her lined up to play, initially. Hate to break it to your Kreuk fans but, IMHO, there’s no authentic close-up of that cunt in the offing. Lol.]

    As to your noble mission, (lyin’) Lauren Salzman testified that ROSA LAURA JUNCO passed the bootie pic files to herself and Lauren hot-potatoed them all straight to Allison Mack — without any copies made at all by anyone along the way. HA!

    Thus, the collateral must be in the most capable hands of the FBI. Seeing how well Lauren and Allie and, probably Rosa Laura, cooperated with the investigation Why the FBI even found Bouchey’s photo spread – no offense to Barb – from the early ’00s, not to mention Cami’s bloody broken hymen pics from 2005.

    Pussy pic scavenger hunts are always a fun way to recruit readers and circle jerk suckers like NG, though. 😆.

    BTW, as to your judge jab, I think Gaurufis was compelled by the law to protect Rainiere’s 5th Amendment rights pending the appeal outcome. But, perhaps, also to protect the victims from the release of any of the 42 library Floors of gigabyte data NXIVM collected on its VIP targets and humble servants alike that the DOJ admitted is in their custody and control!

    • “Hate to break it to you Kreuk fans but, IMHO, there’s no authentic close-up of that cunt in the offing. Lol.”

      Heidi, I’m shedding so many tears that even Vanguard would get wet.

    • >>…just set up her sucker Smallville co-star, Allison Mack, as the frontwoman,

      She set no one up. The Sleazemans and Raniere set her up just like they set everyone else up.

      Also, what self-respecting woman refers to the private parts of one as a “cunt”?

      • “no authentic close-up of that cunt”

        Maybe H H wasn’t referring to her crotch, instead to a close-up of K K herself as that “cunt.” Many here have.

  • Years ago a mystery writer named Raymond Chandler wrote his first novel titled “The Big Sleep”. It was published around 1940.

    A subplot in this story is about a rich young woman, and heiress, who is drugged and set up for blackmail with nudie photos.

    If Raymond Chandler, writing eighty years ago, could figure out the blackmail potential of nudie photos, why couldn’t the brilliant women of NXIVM?

      • Nicki is proof positive for brainwashing…and the utter “doubling down” of narcissistic disavowal of the potential to be wrong…and the buffering of it with what are effectively “I’m better than you are” rationalizations shielded by generally positive words such as “agency”, “character”, “integrity”, etc.

        Or…she’s just a self-deluding moron.

        She seems to have somehow convinced herself that because her polyamorous boyfriend says the women “consented” through all the layers of manipulative word salad and deception, that they are now turning back on “their word”.

        Sorry, but in real world of morality Nicki, if a vow is rooted on even a single false foundation — especially of intent — whether it is via a lie, deception, omission of truth, etc., then it is immediately rendered null and void. The “Ha, ha gotcha!” of a narcissist doesn’t apply.

        • For staunch cult followers, like Nicki, it is easier to stay in their cult-state-of-mind than to face and accept reality. For them, It is simply too painful to accept reality. That is why they choose to remain in their “beliefs” and comfort zone. It is classical cult behavior.

          I hope there will be a moment where she is able to set her mind free.

          • Well said.

            I think there is also deep desire for superiority and control over other people living inside Nicki Clyne.

            Ask yourself what kind of not super educated or traveled or skilled or accomplished human being believes that they should be a “master” over the entirety of another human adult’s life?

            Or believes that another human being needs to be “mastered” by any other person outside of their own self?

            Or would want to have a “slave”?

            “I was on Battlestar Galactica a long time ago, so therefore I am both worthy and entitled to completely control other women”.

            And again, she DESIRES such control and elevated status. Craves it even.

            Watching Nicki’s unquenchable lust for attention and approval and accolades on social media – it’s very obvious what Raniere exploited inside of Nicki Clyne.

            There is a real thirst to be special. To be “the one who can change and fix the world”. One can see how Raniere would use triangulation and jealousy and weaknesses Nicki possesses to motivate and control her. Nicki believes that she is different and better than all other women. And also.must have an audience and cannot be alone.

            Nicki Clyne sees herself as a noble, worthy leader of women who must break them down to save them. Her contempt for women in general is palpable.

            It’s not super deep or complex to understand the psyche and cult vulnerability deep in Nicki Clyne that Raniere recognized and bent to his will.

      • “What is this temptress up to, only time will tell!” Anonymous

        I believe Nicki wants a civil attorney to defend against the civil RICO case filed against her, Allison Mack and all the other NXIVM defendants.

    • Raymond didn’t realize how EMPOWERING those nude photos were.

      “Blackmail” is empowerment.

      “Slavery” is freedom.

      • The Big Sleep was also the basis for a Humphrey Bogart movie that is classic film noir.
        You can watch it on a streaming service or rent it from Youtube.

        There is a remake with Robert Mitchum that is free on Youtube.

        • They don’t make actors like Robert Mitchell anymore. He’d been on a chain gang.

          On one occasion, he was asked, how he liked acting.
          His reply, “It beats working for a living”.

          • When he was heading to Hollywood for his first job, he told his girlfriend, “Stick with me, Baby, and you’ll be farting through silk.”

            Movie tip for Mitchum fans: Watch him in a rare romantic lead in a seldom-seen Christmas movie. Holiday Affair with a young luscious Janet Leigh. Warm and humorous but deals with adult issues in an adult way.

  • Where’s the collateral? Who has it, who had it? Who cares?

    These digital files are floating around out there somewhere. Or maybe they’re not. No way of telling how many copies were made. Whether they were erased, deleted, lost, forgotten. If Raniere knows where they were or are, he’s not telling and there’s no way to make him. Any more than it can make him pay the three million bucks.

    Is this a victory for Raniere? Hardly. He’s in a prison cell for the rest of his life.

    The worst that can happen is if the vagina pictures end up online. Where they join the millions of pictures of people’s genitals (ick) available for free to anyone who knows how to click a “yes I’m 18” box.

    Great victory for The Vanguard as he enjoys his hot dog and salad in USP Tucson.

    So maybe Allison Mack is kept awake nights in her prison cell worrying that her pussy pics will be plastered all over Porn4Sale.com. Too effin’ bad.

    I have sympathy for some of these women but seriously, how stupid do you have to be to turn over blackmail material to a cult? Don’t questions arise when someone says, “Hi, there’s this cool women’s empowerment group we think you might like, but first we need naked explicit pictures of you” ?

    Ain’t no cure for stupid.

    One last point. The Fifth Amendment. Very important protection for individual liberty and its presence yet another reason against the notion that we live under some kind of tyrannical oppressive regime.

    • — “Hi, there’s this cool women’s empowerment group we think you might like, but first, we need naked explicit pictures of you”? Ain’t no cure for stupid.–

      In The Vow, Mark V, when he heard about DOS recruiting, asked “Is this why Kristin Kreuk left.” I think it was. Kreuk was part in/part out of Nx then, but when recruited for DOS (probably by Mack) she balked at giving a crotch shot to learn about the badass women’s group.

      Whatever the intelligence level is of Kreuk, she wasn’t stupid enough to give her money to Vanguard and wasn’t stupid enough to join DOS.

      • Kook thought, “Why should I give naked photos of myself up when I have already given Keith the real thing?”.

    • Aristotle-

      Even if there’s a plethora of porn picks out there, would you want your mom’s ass, spread eagle, showing off her clam basket, and a side of fuzzy seaweed?
      Maybe a pic of your daughter?

      What happens when a prospective employer does a Google search and sees one of these women in a compromising position with five other women?

      Think!!!!

      • I thought here’s what I’d like to run by you. If I parlay some Pornhub visits with some indeed.com visits, are you saying HR won’t have a problem with my “forest/vajungle /fur pie /hay for the donkey/ bearded taco/ barber’s dustbin/hairy axe wound” searches? I’m not sure I’m with you on this one, Niceguy…

      • What Nice Guy said. Collateral has a completely different meaning when it’s your mom, your sister, your daughter, your best friend, or your significant other. It’s also not just nude photos, it’s also any number of things. Many women wrote falsified stories about loved ones. Some wrote them in envelopes addressed to the press or law enforcement with stamps on them. What if someone were to drop them in the mail? If these letters reached, say, a local sheriff’s office, it might not be immediately clear that they were collateral. Additionally, I think it’s a little sweeping to say all women in DOS were “stupid”. (And to be clear, I’m an outsider speaking, I have no connection to the case, don’t know these people, was never in NXIVM or DOS.) All these women had to give collateral just to learn was DOS was, and then more collateral to join and stay in. They were recruited by people they knew and trusted, who told them it was safe and would be a positive experience. DOS masters in most (all?) cases withheld information and lied about fundamental elements of DOS. It’s easy for us to armchair quarterback and say “They should have known better” but how were they supposed to know that when they were being lied to by people they trusted? By the point that Raniere started being asked for monthly collateral and some were assigned the seduction assignment, they were already collateralized, and as a result, some testified that they did not feel as though they could say “No”. I think Raniere very intentionally designed it that women would be approached the first time by someone they very deeply trusted; otherwise no one would have ever given collateral, ever. He weaponized trust.

        • “ I think it’s a little sweeping to say all women in DOS were “stupid”.”

          Is it stupid to stick a finger in a light socket? Is it stupid to play golf in a thunderstorm? Give strangers your Social Security number ‘cuz they ask and seem nice on the phone?

          Lots of things are stupid. And the people who do those things demonstrate their stupidity by doing them.

          Which doesn’t mean stupid people don’t deserve sympathy. I feel pity for these weak-minded fools. As that great philosopher Mr. T said, “I pity the fool…”

          They also deserve the full protection of the law. Just because they lack common sense doesn’t mean they should be left out in the cold.

          I just don’t think we should ignore the fact that it’s pretty stupid to give up explicit naked pictures of oneself as a precondition to joining some alleged feminist self-help group.

          “…how were they supposed to know that when they were being lied to by people they trusted?”

          Because maybe it was time to rethink that trust when they demand blackmail material?

          What honest organization demands crotch shots of prospective members? Demands compromising (factual or fictional) statements implicating loved ones?

          When someone you trust asks you for something like that, it’s time to tell them to f*ck off. And maybe stop trusting them. And the organization they represent. That’s what any person with morals would do, anyway.

          Which brings me to another point. Note that these women willingly gave up damaging information, much of it lies, about other people. friends and relatives. They did this for personal advancement. The “poor misled victim” Allison Mack concocted a tale of child abuse against a relative. This proved them, and her, to be much worse than merely stupid and foolish. They are also vicious liars, selfish beyond belief.

        • I can agree with this up to a point. But when naked pictures and videos, lies about the self and others, master/slave nomenclature, etc., become involved, then this excuse no longer flies. Adult women who were raised correctly to believe in a higher purpose 1) would have no reason to join a group mired in controversy as a cult; and 2) should’ve known better. This is what happens in a society ungrounded from traditional morality. Yeah, many social norms of the past no longer apply in modern society, but much of it is still very relevant. Once those ties to a strong moral foundation are lost, people either begin to lose their discernment ability, or have no grounding from which to judge correctly, and as a result, they fall for charlatans like Raniere.

          • @Anonymous 7:06 AM are you so sure adult women from societies of “traditional morality” never fall victim to abusive men? Let us consider, as just one example, Ravi Zacharias.

            https://www.christianitytoday.com/news/2021/february/ravi-zacharias-rzim-investigation-sexual-abuse-sexting-rape.html

            “One woman told the investigators that ‘after he arranged for the ministry to provide her with financial support, he required sex from her.’ She called it rape. She said Zacharias ‘made her pray with him to thank God for the ‘opportunity’ they both received’ and, as with other victims, ‘called her his ‘reward’ for living a life of service to God,’ the report says. Zacharias warned the woman—a fellow believer—if she ever spoke out against him, she would be responsible for millions of souls lost when his reputation was damaged.”

            From Wikipedia:

            https://en.wikipedia.org/wiki/Ravi_Zacharias#Sexual_abuse

            “On 11 February 2021, Ravi Zacharias International Ministries released the results of its investigation, concluding that there was credible evidence that Zacharias had engaged in sexual misconduct. Accordingly, it was found that Ravi Zacharias solicited and received sexually explicit photos from more than 200 women who were in their early twenties until a few months before his death in May 2020 at age 74.”

            I would bet a number of those 200 women in their early 20s were upstanding Christian girls.

          • I never said anything about religion or the religious being immune from abuse. I used the term “traditional” [family] values or morality. Practically anything and everything can be abused in some manner.

          • To clarify for Anonymous 6:59 PM, believe it or not, most women are still raised with a stigma against sharing naked photos of themselves. If you read available trial transcripts and public comments from DOS members, I have yet to see one person, even DOSsier women, say they did not have discomfort around sharing naked photos of themselves. And in fact, that was the point of it, and I believe even the DOSsier women would support that interpretation. It was presented as an exercise in trust, in collateralizing their word, and that they had nothing to fear about the photos ever being released as long as they did not break that trust. You can argue there’s a naïveté in that, and I would agree. But again, this was something where the friendships and trust played a huge role in overcoming the discomfort.I believe it was explicitly designed by Raniere that way, for his ultimate benefit.

      • I’ve never understood this line of argument. “How would you feel if your daughter was gang-raped by a bunch of Armenians?” How do you think? I’d be enraged, and probably hate all Armenians for the rest of my life. Be vengeful hate-filled and completely illogical.

        There’s a reason we don’t put family members of the victim on juries.

        I think matters should be judged objectively and dispassionately. Maybe that makes me weird. So many people seem to think we should make decisions in a state of blind rage, warped by personal bias.

        • Mr. Aristotle,

          Did you read:

          “What happens when a prospective EMPLOYER conducts a Google search or background check, and views one of these women in a compromising position with four other women sitting on a couch?”

          Here’s a memory refresher:
          The women on the couch were naked and spreading their labia.

          Do you and the other bozonian get my point?

          I bet the bozonian thinks I’m “spot on”.
          😉

      • My mom would never take photos of her seafood platter and email it to anyone, especially not a greasy, long-haired, bearded, short troll or his girl friends.

        That makes her really unusual, right?

  • Frank,

    You’re a dick! I was so excited for Part 3 of this series to come and was so excited to see it, thinking that it would finally reveal the name(s) holding the collateral and that you were going to stop saying shit that we already knew! But not only did you not do that again, this article was the most obvious and pointless one yet! Stop being a douche bag and reveal the Goddamn name(s), you Goddamn son of a bitch!

    NO MORE BULLSHIT ARTICLES LIKE THIS! REVEAL THE NAME(S) IN THE NEXT ARTICLE AND STOP BEING AN ASSHOLE ABOUT THIS, BY DOING THIS BULLSHIT!

    😠😡🤬😤

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

Connect