By K.R. Claviger
As most Frank Report readers already know, sometime next month U.S. District Court Judge Nicholas G. Garaufis is expected to rule on the various claims that have submitted by individuals who believe that they are “victims” of Keith Alan Raniere AKA Vanguard.
In this context, the term “victim” is generally defined as any person who has sustained emotional, psychological, physical, or financial damage to their person or property as a direct result of the crime charged.
In this case, it is Judge Garaufis who will determine exactly who is a victim – and exactly how much damage each of them incurred.
Judge Nicholas G, Garaufis will decide who is a victim – and how much they have been damaged.
**********
What Restitution Has Already Been Ordered?
Depending on the specific crimes involved, federal judges are sometimes permitted – and at other times required – to order that convicted defendants pay restitution to the victims of federal crimes.
Such restitution is generally made part of the defendant’s sentence – which is exactly what has already happened for Keith Raniere and Clare Bronfman.
MK10ART Clare Bronfman and Keith Raniere are both now incarcerated in federal prisons. Painting by MK10ART.
For Clare Bronfman, U.S. District Court Judge Nicholas G. Garaufis ordered her to pay $96,605.25 to Jane Doe 12 (Sylvie). In addition, he also entered a forfeiture money judgment of $6,000,000 against her – which was in lieu of her losing any of her other assets.
For Keith, Judge Garaufis ordered that any claims for restitution be submitted within 90-days of his sentencing, which took place on October 27, 2020.
As noted in an earlier post in Frank Report, the prosecution submitted a summary of those restitution claims, under seal, to Judge Garaufis on January 26, 2020.
Thereafter, Keith’s attorneys, Marc Agnifilo and Teny Geragos, notified Judge Garaufis that they would file his response to each of the restitution claims on or before March 1, 2021.
Teny Geragos & Marc Agnifilo represented Keith Raniere during his trial.
**********
Asset Forfeiture Orders
In addition to the above-noted restitution orders, Judge Garaufis has already signed three forfeiture orders concerning various assets of Nancy Salzman, Lauren Salzman, and Allison Mack.
As a result, all three of them have now forfeited all their rights regarding, title to, and interest in the following assets (See: Preliminary
Forfeiture Orders Signed – Questions Remain Regarding Other Properties):
– Fifteen thousand six hundred seventy dollars and zero cents ($15,670.00) in United States currency that was seized on or about March 27, 2018 from 3 Oregon Trail, Waterford, New York 12188;
– Three hundred ninety thousand one hundred eighty dollars and zero cents ($390,180.00) in United States currency that was seized on or about March 27, 2018 from 3 Oregon Trail, Waterford, New York 12188;
– One hundred nine thousand seven hundred twenty-seven dollars and zero cents ($109,727.00) in United States currency that was seized on or about March 27, 2018 from 3 Oregon Trail, Waterford, New York 12188;
Some of the cash seized at Nancy Salzman’s former home at 3 Oregon Trail.
– The real property located at 8 Hale Drive, Halfmoon New York 12065, together with its respective buildings, appurtenances, improvements, fixtures, attachments, easements and furnishings [This property has been referred to as Raniere’s library”];
8 Hale Drive
– The real property located at 7 Generals Way, Clifton Park, New York 12065, together with its respective buildings, appurtenances, improvements, fixtures, attachments, easements and furnishings, and all proceeds traceable thereto [This home was owned by Allison Mack];
Allison Mack’s former property at 7 General’s Way. It has been seized by the US Government.
– The real property located at 447 New Karner Road, Colonie, NY 12205, together with its respective buildings, appurtenances, improvements, fixtures, attachments, easements and furnishings, and all proceeds traceable thereto;
447 New Karner Rd, an office building adjacent to the main headquarters of Nxivm. This property, along with two others on New Karner Road, was seized by the US Government.
– The real property located at 455 New Karner Road, Colonie, NY 12205, together with its respective buildings, appurtenances, improvements, fixtures, attachments, easements and furnishings, and all proceeds traceable thereto;
NXIVM’s former headquarters at 455 New Karner Road in Colonie, NY.
– The real property located at 457 New Karner Road, Colonie, NY 12205, together with its respective buildings, appurtenances, improvements, fixtures, attachments, easements and furnishings, and all proceeds traceable thereto;
– The Steinway grand piano located in Nancy Salzman’s former residence at 3 Oregon Trail. As previously reported, the estimated cost of that piano was $40,000 (There is also a $90,000 Steinway piano located at 8 Hale Drive – and the government will get that in conjunction with its seizure of that property); and
Keith Raniere playing the piano.
– First Principles, Inc., the Delaware company that owns, among other things, the Rational Inquiry™ technology that includes all 2,000 modules developed by Keith Raniere and Nancy Salzman plus various patents for products that were developed by him (e.g., the NXIVM sashes).
Sashes hanging on a wall at Nxivm headquarters.
The “Corporate Books” for several of the NXIVM-related corporations.
Following the issuance of the seizure applications on the three New Karner Road properties, Sara Bronfman, who, along with her sister, paid for them, submitted a claim against them.
In order to avoid any issues that might hold up the sale of those properties, the feds agreed to pay Sara 20 percent of the proceeds of the sale to be capped at $200,000 – and Judge Garaufis approved that agreement (See: Bronfman Getting $200K From government Sale of NXIVM Headquarters).
Based on an evaluation of current real estate prices of comparable commercial property, the original purchase prices and the assessed valuation, it seems likely that the three New Larner Road properties will net more at least $1 million and possibly $2 million or more.
If even the lower figure is realized, Bronfman will get the $200,000 cap.
**********
So, How Much Money Will Be Available To The Victims?
Although there are still several open issues – such as who will be deemed to be victims in this case; whether Judge Garaufis will impose any additional restitution orders against the other co-defendants who have yet to be sentenced (Nancy Salzman, Lauren Salzman, Allison Mack, and Kathy Russell); how much, if any, of Keith Raniere’s inheritance from the estate of Pam Cafritz will be subject to restitution claims; etc. – we now have enough information to begin estimating how much money will be available for the victims in this case.
Let’s start adding it up:
– $6,000,000 – Cash Forfeiture By Clare Bronfman
– $515,577 – Cash From Nancy Salzman’s House
– $108,371 – 8 Hale Drive (Estimate)
– $45,070 – 7 General’s Way (Estimate) [Market Value of $221,000 minus existing mortgage]
– $750,000 – 447 New Karner Road (Estimate)
– $550,000 – 455 New Karner Road (Estimate minus $200,000 to Sara Bronfman)
– $750,000 – 457 New Karner Road (Estimate)
– $40,000 – Steinway Piano at 3 Oregon Trail (Estimate)
– $5,000 – Damaged Steinway Piano at 8 Hale Drive (Estimate) [Frank Parlato has seen the Steinway at 8 Hale Drive post Keith’s hot tub collapsing the floor and says the piano was almost completely undamaged and believes my estimate is too low. He estimates the piano is worth at least $20,000.]
– $25,000 – Assets of First Principles, Inc. [Note: Someone, perhaps a well-to-do former Nxian , might bid on the First Principles corporation at a substantially higher price than our estimate since that company has a legal claim to all the Nxivm modules sashes, etc.].
_________________________
$8,788,812- TOTAL
At a minimum, it looks like Judge Garaufis will have at least $8.5 million to award to those individuals that he deems to be victims of Keith Raniere, Clare Bronfman, Nancy Salzman, Lauren Salzman, Allison Mack, and Kathy Russell.
And that figure could go up substantially if the judge includes some/all of the $8-million that Keith reportedly inherited from the estate of Pam Cafritz.
The judge could also impose additional restitution on any of the defendants that have yet to be sentenced. But given that he recently allowed Nancy and Lauren to each sell a property they owned – and to keep the proceeds to pay for living expenses – that appears to be unlikely.
So, for now, it looks like the pot of available money for the adjudicated victims will be somewhere in the neighborhood of $8-$16 million – which sounds like a lot until you remember that there may be as many as 80-100 claimants for that money.
If there’s $8 million in the pot and 100 approved claimants, that would allow each of them to receive an average payment of $80,000 (Remember, it is Judge Garaufis who will decide exactly who is a “victim” – and how much each such victim deserves in compensation).
But if there’s $16 million in the pot and only 40 approved claimants, they could each get an average payment of $400,000.
We also have to account for whatever legal fees, if any, each approved victim may have to pay. Some have reportedly filed their claims directly with the court while others have reportedly hired attorneys to do so.. [Ed. Note: Attorney Neil Glazer is representing a number of the people seeking designation as victims qualifying for restitution. His firm, Kohn Swift and Graf of Philadelphia will be getting a percentage of their individual awards. Glazer represents around 80 plaintiffs in a lawsuit against Nxivm leaders.]
Time will tell who Judge Garaufis deems to be victims and how much each of them gets. However, given that all the filings for restitution may be under seal, we may never really know.
Another NXIVM “riddle wrapped in a mystery inside an enigma”…
**********
Fate Of Other NXIVM Assets Is Still Unknown
It is still not known what happened to all the other assets that NXIVM had at the time of its takedown by the prosecutors in the Eastern District of New York.
This includes the following properties that were known to have been owned by NXIVM-related entities back in mid-2011 (There are likely additional properties that NXIVM acquired between mid-2011 and March 2018 – which is when the NXIVM takedown started happening):
RE: COMMERCIAL PROPERTIES
451 New Karner Road, Albany, NY 12065-3821
453 New Karner Road, Albany, NY 12065-3821
10 Maxwell Drive, Clifton Park, NY
– The registered address for Events for Humanity, Inc.
– The registered address for House of Equus LLC
– The registered address for Occam’s Razor LLC
– The registered address for Our Evolution LLC
– The registered address for Slate River Mobile LLC
– The registered address for The Ethical Foundation, Inc.
– The registered address for The Ethical Humanitarian Foundation, Inc.
– The registered address for Ethical Science, Inc.
– The registered address for TRUTH LLC
– The registered address for Ultima
– The registered address for WHARE LLC
5 Southside Drive, Suite #259, Clifton Park, NY
– The registered address for A Capella Innovations, Inc.
– The registered address for NX Trust
– The registered address for Spirit @ 19, Inc.
319 Ushers Road, Clifton Park, NY 12065
– The registered address for Axiology, Inc.
629 Plank Road, Suite # 233, Clifton Park, NY
– The registered address for Village Hall LLC
1479 Route 9, Suite # 202, Clifton Park, NY 12065
– The registered address for WHARE LLC
Romano’s Restaurant/1475 Route 9, Clifton Park, NY 12065
– Reportedly purchased by Barbara J. Bouchey on an individual basis – but the actual purchaser may have been NXT Trust
– Ownership later transferred to Village Hall LLC
– Operated as a “members only” club under the name “Apropos”
– Hosted NXIVM/ESP’s Holiday Parties
9 Douglas Avenue, Rensselaer, NY
– The registered address for Althetica LLC
***************
RE: RESIDENTIAL PROPERTIES
7 Bay Hill Court, Clifton Park, NY 12065-1204
1 Brigantine Place, Clifton Park, NY 12065
1 Flintlock Lane, Clifton Park, NY 12065
2 Flintlock Lane, Clifton Park, NY 12065
3 Flintlock Lane, Clifton Park, NY 12065
– The registered address for Buyers Advocate, Inc.
– The registered address for First Principles, Inc.
– The registered address for The Raniere Group, Inc.
– The registered address for The Think Fund, Inc.
– Jointly owned by Keith Raniere and Karen Unterreiner
7 Grant Hill Road, Clifton Park, NY 12065-7604
– The registered address for Elite Marketing Professionals, Inc
115 Grenadier Court, Clifton Park, NY 12065-6577
3 Hale Drive, Clifton Park, NY 12065
– Owned by NXIVM Properties LLC
– The registered address for POIESIS, Inc.
9 Hale Drive, Clifton Park, NY 12065
– Owned by Axiology, Inc.
21 Hollandale Lane, Apartment H, Clifton Park, NY 12065-5257
11 Montgomery Way, Clifton Park, NY 12065-7606
13 Twilight Drive in Clifton Park, NY 12065
12 Wilton Court, Clifton Park, NY 12065
203 Yorktown Drive, Clifton Park, NY 12065
1 Woodin Drive, Halfmoon, NY
2 Woodin Drive, Halfmoon, NY
Lot At Corner of Stone Quarry & Woodin Drive, Halfmoon, NY
35 Odell Avenue, Yonkers, NY 10701-1247
