Anonymous09/08/2021
ROTHMAN, SCHNEIDER, SOLOWAY & STERN, LLP
Attorneys at Law
100 Lafayette S treet, Suite 501
New York, NY 10013
F rankl in A. Rothmnn Jeremy Schneider Robert A. Solo way David Stern
Rachel Perillo
EBCYM
Hon. Nicholas G. Garaufis United States District Court 225 Cadman Plaza Brooklyn, New York 11201
Re: United States v. Nancy Salzman 18 Cr. 204 (NGG)
Dear Judge Garaufis:
Nancy Salzman is a 66 year old woman who for most of the past twenty years has been fooled, controlled, humiliated, and ultimately led to engage in criminal conduct by an egotistical, self-important, sex fiend who told all who would listen about his (fake) solution for mankind’s problems. That is not to say that Nancy did not have agency or free will, or that she lacks responsibility for her conduct. Indeed, she lives every day bearing and appreciating the full weight of her wrongdoing while she served as Keith Raniere’s collaborator and enabler within the Nxivm community.
It bears underscoring nevertheless that a depraved but influential Raniere exploited her (along with scores of others) to serve his interests by pretending to be someone he never was — namely, a seeker for universal good, gifting the world his “new ethical understanding” that would allow “humanity to rise to its noble possibility.” (PSR at S 6)i But as the trial of this matter revealed, the only goal Raniere ever really pursued was what was best for him.
How such a path could be taken by an intelligent, talented woman who, until meeting Raniere, had led a scrupulously law-abiding and productive life, is mystifying. But her particular weaknesses combined with Raniere’s undeniable powers of control over the human will of certain people and uncanny ability to neutralize the judgment of these individuals, took Ms. Salzman on a terrible decades-long journey which even today she struggles to fully understand. Given all of her current circumstances and characteristics, including her serious health problems, the indispensable role she plays in the care of her elderly and very ill mother, her full, complete, and early guilty plea
1 The self-described philosophy of Nxivm as stated on its official website.
and acceptance of rcspoiisibility (which broke a dcfcnse logjam and paved thc way for all but the lead defendant to enter goilty pleas), we respectfully urge this Court to impose a scntcncc of pñncipally two ycars home confincincnt, a sentcncc it is submitted which will satisfy all the goals of federal scntencing.
INTRODUCTION
A. Letters iii Support ofNancy Salziiian
Annexed hereto as Exhibits A, B, and C, mspectivcly, are lctters writtcn to the Court in support of Ms. Salzman tod into three cat Exhibit A contains seven famil
written ectivcl
it contains nine otters tom a group ve their pcrsonal stories of Nancy’s kindness and compassion, and how those traits have
positively impacted, and in some cases, profoundly altered the course of tlicir lives for thc bettcr. Many in this group cxprcss thanks to Nancy for bcing thcre when thcy needed hcr special brand of hclp, and while cach story is different, they share the common thread of demonstrating that there is far more that defines Nancy Salzman than the criminal activity of which shc stands convicted. Exhibit C is comprised of 23 letters from mcinbcrs of the Nxivm community who have eiicountmed Nancy in her role as a teacher and counsclor. They sing Nancy’s praiscs as a communicator, a facilitator of positive change in troubled lives, and an extraordinarily compassionate and cffcctive life coach. Collcctivcly, thcsc lettcrs leave no doubt that for decadcs, Nancy was for most who met licr an exemplary, honorablc, and rarc pcrson, recognized widcly for her coininifincnt to liclping others.
Taken togcthcr, thc attached letters rcflcct the positive ways in which Nancy has impacted scores of pcople throughout her life through counseling, parcnting, teaching, coaching, and the expcnditure of her conccm, her time, and her prcscncc. Despite the crimes of which she is guilty — committed after she catostrophically became involvcd with Raniere — the lcttcrs stand as a testament to how shc has consistently touched and inspired scores ot‘ordinary pcoplc for decades, and how in rcturn, they have not torgottcn or abandoned her.
But Nancy’s caring touch, as notcd, was never limitcd to thosc close to hcr by consanguinity. Instead, the attached letters abound with praise for Nancy from many dcmograpliias and evcn far flung corners of the globe.
known
acting as a role modcl, and bcing“the kind of person whom I aspired to be like.” After reciting the specifics of Nancy’s help for hcr and her own fami)y, the many pcople She witnessed who have benefitted from Nancy’s gifts and caring hard work, and her personal regret for not seeing how Nancy was bcing victimized by Raniere’s cruelty, and failing to help her, slic concludes:
1 havc no wish to paint a picturc o1’Nancy as a victim or a martyr as she is quite simply onc of the most plicnomenal human beings I”vc cver mct. Her crime, 1 belicvc, was that slic was too trusting and that shc was blindsidcd by tier desire to inakc thc world a bettcr placc for all humans. She bclicvcd that Keith Ranicrc wantod thc same things as she did, which was to help humans be happier, kinder and more joyful towards thcmselvcs and otlicrs. Hcr crime was that her own vision for thc world was so purc. it blinded her to any wrongdoing as SlJC Simply could not hypothesize an altcniativc, malicious viewpoint. If you take nothing else away from tlJis account of Nancy Salzman's character, plcasc know this. You will never find a more noble hinnan with a more puic intent than Nancy. 1 know hcr soul. And I can tell you that there is nothing tlicre brit kindness and good intcnt. The world would bc a far worse place withoiit Nancy in it.
lcttcr is annexed as part of collectivc Exhibit B.
I can say without hcsitation that the quality of icy lifc is better than it evcr would have been had I not inei (Nancy]. As a diro•ct rcsult of her help and thc time and effort she put into my life over the past 15 years I have a bcttcr rclationship with both of my parcnts (with whom I’ve had a difficult rclationship most of my lifc), I have a much bcttcr rclationship with my sister, and I feel bcttcr about myself than 1ever did before I met her … Pcoplc in her lifc bc•ncfit grcatly from thc time and effort she puts uito helping pcoplc, and those people go out positively and affect the peoplc around thciu, and I think that is a hugely important thing in the world today. Nancy is absolutcly onc of the most caring and hard-working peoplc I’ve cvcr inct.
leacr is anncxcd as part of collectives.
These to whom refers have provided the Court an enormous varietyofindividual positive outcomcs for which Nancy is crcditcd. These individuals havc no motivc to fabricate, but every motive to scek to assist somconc who has given so much ofhersclfto assist thcin. That is why thcy havc written this Court in such numbers.
letter is annexed hereto as part ofcollcctivc
lcttcr is anncxcd as part of collectives.
Thesc exccrpts arc tnily the tip of an iccbcrg. Additional lcttcrs expressing similar scntinients as to Nancy’s generosity and her ability and drive to help others are attached.
B. Naitcy’s Background end Career
For years bcfore her involvement with Raniere, Nancy workcd hard to build a solid professional reputation and thriving carcer. She has always contributed dutifully to raising and supporting her two daughters, and been economically independent through her own labor.2 At the moment in lifc that she mct Raniere, Nancy was in thc midst of a full life, at the apex of her self- made successful career. In contrast, she suflcrs now from scrious health problems, and bcars the onus of caring for her surviving parent.
Nancy graduated from New Jersey’s Muhlenberg Hospital School of Nursing in 1975. Thercaftcr, she accepted a nursing position at St. Mary’s Hospital in Waterbury, Connecticut beforc giving birth to her daughtcr, Lauren, one ycar later. Aftcr the birth, she developed an interest in cxploring non-traditional approaches to controlling pain. She did coursc-work in the fields of bio- feedback and ncuro-linguistic programming. (PSR at $ 205) Throughout thc 1990's , she owned a private center for thc trcatincnt of those suffering from chronic pain referrcd to her by doctors and dentists. (PSR at $ 204, and letter o annexed as part of collective Exhibit B). Shc was good at hcr work and she worked tirelessly. Her practice grew, in both raw numbers of clients, and in scope. Because of her background in both nursing and disciplines focused on human performance and potential, shc bcgan to reccive offers to train staff from large organizations in thc upstatc New York oroa in which shc lived and worked. Shc did such work for, among otlicr entities, Children’s Hospital at Albany Medical Center, the Ncw York State Department of Criminal Justice, American Express, Saint Cabrini Nursing Hoinc, and the New York Statc Dcparhnent of Hcaltli. (PSR at 203)
2
The family was intact until 1991 at which point Nancy separated front her first husbaRd, Michael, a physician. (PSR '}| l S6) At that time, her daughters were 14 and 11, respectively.
In 1997, Ms. Salzman received a particularly lucrative and challenging contract to provide staff training to the energy giant, Consolidated Edison, which was looking for ways to maximize the productivity of its workforce in several of its facilities and departments, including the Indian Point 2 nuclear power plant. Although she was flourishing professionally beyond all of her expectations, the opposite was true of her personal life. After five years of marriage, Nancy separated in 1997 from her second husband, Edward Pike, and was later divorced. (PSR $ 188) After this second failed marriage, she began to doubt her ability to have a successful relationship. When her self- esteem was at one of the lowest ebbs of her life, she had the misfortune of being introduced to Raniere She introduced him to Nancy as a “uniquely intelligent” entrepreneur interested in making her acquaintance. letter attached as part of collective Exhibit B)'
C. Nancy Meets Raniere and a Business Relationship is Formed and Grows
Raniere was young, clearly interested in Nancy, and keenly interested in hearing about her work and methods. At the meeting, he offered to help her find solutions to some of the complex problems which she had been hired to solve, including some questions that confronted her in her Con Edison project. Almost immediately they began an intimate physical relationship (initiated by him) and he used that relationship to begin working her into his plans. Only now that the depths of his severely hurtful depravity and abusiveness have been revealed to the light of day has Nancy realized that what he saw in her was a worker, able to do things he could not, and for which she would allow him to receive credit. Thus began a twenty year relationship characterized by intimidation and abuse.
Shortly after they met, Raniere began explaining his “revolutionary” theories for changing the world and, because she felt desperate for love and respect, she went along. Raniere was a facile speaker who belittled those who disagreed with him in ways that, for some peculiar reason, made the masses who worshiped him both love and fear him. Nancy was no exception. Raniere perceived everyone who opposed him as a schemer and traitor trying to destroy him because of fear of his great genius. Everything that went against him in life (including his own prior criminal behavior, and
3
In hindsight introduced them to her great regret. Noting that “Keith is exceptionally smart and knows how to indoctrinate and manipulate people,” she continues as to Nancy in particular:
Raniere had many victims but one of his first victims was Nancy. He used Nancy’s belief in his goodness to ride on the tailcoats of her hard work, dedication and skills for 20 years. He used her to promote himself and kept her working all the time to keep the company and community together. He
kept her occupied all the time and hid from her what he was doing while she was hard at work.
letter is annexed as part of collective Exhibit B.
forays into financial markets with other people’s money that ended disastrously to the tune of tens of millions of dollars) he interpreted as the consequence of conspiracies by his enemies to discredit him. He created rules of behavior and a nomenclature for what would become Nxivm and convinced his followers that everything he told them was true, and indeed the only correct path. If they did not understand the rules or failed to follow them, it was their “ethical breach,” and for their own good. Raniere corrected his followers through shunning, humiliation, and other punishments. He also enlisted the whole community in his punishments. As just one example, after Lauren became a Nxivm member, she would often be tasked with confronting her mother about her breaches, and to encourage her to acknowledge Raniere’s near infallibility.
With Nancy, correction also often took the form of gratuitous abuse and public humiliation. Like many others, she was forced to diet to meet his ideal of a perfect woman and, and no matter how thin she became, she was never thin enough. In the beginning, after meeting all of Raniere’s demands, she was told without explanation that he would not continue a physical relationship with her. That, however, was not enough for him. Although he refused her a physical relationship, he did not want her to have intimate relationships with others, claiming that doing so “was not in her best interest.” (PSR at $ 189) He directed her to report to him anyone with whom she considered having a relationship and each of these people were rejected by him for their supposed shortcomings. His dictates in such matters were supported by his acolytes, who carried out his every command. Nancy’s devotion to Raniere was such that she accepted his orders and has had no romantic relationship for the past twenty years.
In addition, although Nancy did exceptional work to ensure that Nxivm’s teachings would be well received and successful, she was never anything more than a tool for Raniere. She was discouraged from taking credit for her work and when she had the temerity to offer an opinion or speak, she was publicly shamed.
However, Raniere knew that there were limits to what Nancy would tolerate. Thus, when his depraved plan reached its crescendo in the creation of DOS, all of the members, including her daughter Lauren, were ordered to keep it secret from Nancy, and they did. DOS was at the heart of the government’s case, and it is conceded by the government that Nancy played no role in it, and that she was not aware of its existence until it was publicly revealed to the Nxivm community.
II. Ms. Salzman Fully Accepts Responsibility for her Offense Conduct
The crimes to which Nancypled guilty are indeed serious, and she fullyaccepts responsibility for her guilt. At the same time, her role in those crimes, and the treatment of others involved in them, should be considered by this Court in fashioning her sentence.
Nancy pled guilty to participation in a racketeering conspiracy and admitted to both of the specific racketeering acts alleged against her: To conspiring to commit identity theft
(Racketeering Act 2A) and to conspiring to alter court records in a federal civil proceeding (Racketeering Act 3).
(PSR at $$ 112-115) It bears noting that at the time of these acts, which occurred well over a decade ago, she was deeply under Raniere’s influence, and wrongly believed that whatever she did on his behalf was for the greater good. These facts are neither a defense nor a legal excuse for her wrongdoing, but are pertinent to the severity of the sentence merited.
Further, beyond her personal involvement in these offenses, Nancyaccepts responsibility for enabling the horrific crimes Raniere committed, even where she lacked any knowledge of their commission or nature. Indeed, she herself feels the weight of responsibility for not making herself more aware of the enormity of what “Vanguard” Raniere was doing at the helm of Nxivm, an entity that she had co-founded with him, and that was her life’s work.
As to identity theft, while she herself lacked the technical ability to invade the on-line accounts of others, Nancy agreed between 2006 and 2008 that other Nxivm actors would invade the privacy of perceived critics of the company to try to stop them from continuing their criticisms of the company, or to gain unfair advantage over them in ongoing litigations. For this wrongful conduct, she accepts responsibility.4
Among Raniere’s unscrupulous business tactics was the utilization of the great wealth of some of his followers to hire lawyers to misuse the court system, and thereby intimidate those he considered to be his enemies. As to conspiring to alter records, Nancy accepts responsibility for allowing others to alter videotapes that were turned over in civil discoverypractice without revealing the edits to anyone outside the company. States the PSR as to this offense, including the roles of others:
In June, 2008, Raniere tasked Mark Vicente, a high level Nxivm member, among others, to alter videotapes and to remove certain segments from them without having the videotapes appear altered. [Clare] Bronfman together with another co- conspirator helped Vicente with altering the videotapes to remove content, including segments in which Nancy Salzman made unsubstantiated health claims about Nxivm’s curriculum. These videotapes were then produced in discovery by Nxivm’s attorneys with the false claim that they were provided in “unedited fashion.”
4
There is a limitation here however, as the government has painted Nancy’s guilt of this offense with too broad a brush by including her in the retention of the Canadian investigation company, Canaprobe. (See, the August 18, 2021 letter of AUSA Tanya Hajjar, which states, “Nancy Salzman helped Nxivm retain private firms, including Interfor and Canaprobe, in order to investigate perceived enemies of Nxivm and Raniere.”) In fact, while Nancy was privy to and involved in the work done by Interfor, and knew the nature of the services that firm rendered, Nancy was never aware of Canaprobe’s retention by Nxivm, and neither played any role in its retention or direction, and had no knowledge of any services they rendered, despite the fact that records, about which she was ignorant, were recovered in her home at the time of her arrest.
(PSR at $ 115). Mork Viccntc has never faced prosccution for his lcadcrship and thc employment
of his technical cxpcrtise in thc commission of this offense.’
III. Important Post- trrest Facts Welgh in Favor of a h'on-Custodial Sentence
A. The Decision to Plead Guilty, Compliance tvitli Supervision and Assistance to the
Sincc licr arrcst, Nancy has suffcrcd both physically and emotionally. First, it was necessary for licr to intemalizc the rejection of a bclicf systcm she had lived by for twenty years. Though her conscientious bclief in some fcaturcs of Nxivm’s catcchism wancd with Raniere’s accclcrating mistrcatmcnt, cntircly repudiating that nystcm which she playod a ccntral role in formulating, mcmorializing, and tcaching, still rcquircd not only jcttisoning a philosophical framcwork shc had bclicvcd in, but repudiating belicfs still held by many of hcr closest liicnds. Through study and psychic rigor, she found the strcngth to rcpudiatc it all. She thus bccamc the first dcfcndant in the case to acccpt that many of the things she had bcen taught by Ranicrc were false, and that the man shc had thought and had taught others was “infallible,” was actually dccply flawed, and vicious to the core.
We do not aver that Nancy did not engage in actions which were hurtful to some who participated in Nxivm. Indeed, the government has delivered nine victim impact letters excoriating Nancy for conduct which she finds truly jarring. And while we have no wish to denigrate the sentiments expressed in the victims’ letters, we note that many of those who wrote left the organization over a decade ago, and were likely unaware of the level of abuse and mani ation Nanc endured from Raniere. But two of the letters in icular merit comment.
It l•8h wo riot th8tapproximately 17, people have received some sort at Nxivm and many of them found the training to be extremely helpfiil, including those who have written glowing endorsements of Nancy’s worl, and are collected for the Court’s reference as collective Exhibit C.
Thus, Nancy brought the same zeal and incisive thinking she employed in her life’s work to her examination of the discovery in the case. And while seeing in black and white what Nxivm had become was humiliating and frightening for her, she forced herself to be clear-eyed about the facts.
The consequence of these steps led her to plead guilty, notwithstanding the pressure and opprobrium directed at her by many former friends, including, of course, Raniere himself. Her decision and genuine remorse for her wrongful conduct had ancillary benefit for the Court and justice system at large, because, following that guiltyplea, others, most notably her daughter, Lauren, realized it was indeed possible to renounce Raniere, despite the many who still steadfastly remained faithful to him.
After pleading guilty, but before Raniere’s trial, Ms. Salzman made the decision to try to cooperate with the government.
Nnncy assisted where she could and provided valuable information that helped the government to prepare. In addition, and perhaps more importantly, she encouraged Lauren to plead guilty and to assist the government. While Lauren, of course, made this very important decision herself with the assistance of counsel, Nancy’s active encouragement played an important role in her decision.
Nancy was arrested on July 24, 2018. (PSR at p. 1) During the three years since, she has been subject to strict conditions of pre-trial release which have curtailed her freedom. Electronic monitoring has been applied throughout her supervision. For the first year of supervision, she was on home confinement, and for the two years since, she has been subject to curfew. Throughout this time, Nancy has always been compliant with all conditions of release. (PSR at $ 4)
B. Nancy’s Health Struggles have Accelerated Since Her Arrest
In concert with debilitating physical pain she endures at times, such insults pale beside the emotional anguish Nancy has endured since her arrest. First and foremost, she has struggled with the guilt of exposing Lauren to Raniere’s sadistic attentions. While Nancy had led a full life prior
to meeting Raniere, Lauren had not.
ancy deeply believes that the pain to which her daughter has been exposed is entirely her fault and regrets her role in that debacle every day of her life.
In addition, during the pendency of her case, the health of Nancy’s parents has failed, and her father recently passed away.
Nancy has dedicated herself to their care and to the mission of allowing them both the dream of dying in the home they have resided in for over 70 years, instead of in an institution. That goal was achieved with respect to her father, and his letter memorializxes the eternal gratitude he felt toward his daughter shortly before his death. Nancy was at his side until and the very end.
Now Nancy cares for her mother,
Nancy's mother is alone. would be gravely impacted by her incarceration.
CONCLUSION
and
It is respectfully submitted that no legitimate sentencing goal will be served by imposing a prison sentence uponNancy Salzman. Regarding general deterrence, those who learn ofher sentence will know that one who fully admits guilt, pleads guilty early in the case, and tries to help the government, will receive credit for doing so. Regarding individual deterrence, Nancy is a 66 year old woman with serious health problems and pressing obligations to her ill and elderly parent and family. Given her level of early acceptance, remorse, and success on supervision, she has shown she poses no danger to any individual or to the community at large. She has facilitated the guilty pleas of others, and is trying to plan for the life which lies ahead of her. She has herself assisted the government (though not “substantially” as a term of art) and encouraged her daughter to do so as well, and the latter became one of the government’s most powerful witnesses. And she has shown great remorse for having participated in the indicted crimes.
Based on all of the above, we respectfully request of this Honorable Court that she be sentenced principally to no term of incarceration, but instead to a period of home confinement, to be followed by further period of supervised release.
Respectfully Submitted,
David Stern / Robert A. Soloway
RAS:sc encl
