Comments10/20/2017
The main source for the NY Times article was Sarah Edmondson, secondarily Soukaina Mehdaoui, Jennifer Kobelt, Anthony Ames, Mark Vicente, and Catherine Oxenberg. Mr. Parlato was simply mentioned as breaking the story in Frank Report, and being in legal disputes with the Bronfman sisters (following Raniere's orders).
The charges against Mr. Parlato fall into two categories: those related to a $1 million transfer from the Bronfman sisters to him about a decade ago, and those related to a number of corporations in Mr. Parlato's real estate business.
There is a genuine dispute about compensation for work Mr. Parlato did on behalf of the Sara and Clare Bronfman on a California real estate development in 2008. His work clearly saved them $10-26 million. He was supposed to be compensated by a share of profits from the development project he salvaged, but he was fired for no cause except implying Mr. Raniere wasn’t the smartest man in the world before receiving compensation. A $1 million advance to pay taxes on an unrelated project is the subject of the dispute. The $1 million was placed in escrow when the dispute arose, where it remains today. It is very hard to see how Mr. Parlato’s conduct could be construed as fraud or theft, while that of Mr. Raniere and the Bronfmans seems to be, at best, unethical and much closer to fraudulent. The whole dispute would best be considered a civil action, not criminal.
There DOES seem to be an open and shut case that Clare Bronfman has given blatantly contradictory testimony, under oath in cases related to the development project. When it was to her or Mr. Raniere’s benefit, she testified in some cases that there was a written contract for Mr. Parlato’s involvement. When it was to her or Mr. Raniere’s benefit, in other cases, she testified that there was NOT a written contract.
Mr. Parlato has created a number of corporations, as is common in the real estate business. He has created perhaps more than average, in part to evade serial litigator Shmuel Shmueli. While Mr. Parlato made no particular attempt to hide his ownership of the corporations and created them for legitimate business reasons, he is charged with using them to evade taxes. These charges have nothing to do with NXIVM, although Bronfman-funded “opposition research” may have been fed to prosecutors to get the charges placed.
For comparison, the following is a probably-incomplete list of corporations under Keith Raniere's control:
26 Realty Property Management, LLC
A Cappella Innovations, Inc.
Aletheia LLC
Alpha Development Group
Anima Inc.
Axiology, Inc. (Nevada: March 18, 2008)
Buyers Advocate, Inc. (Delaware: June 28, 1999)
Center for Ethical Justice LLC (Delaware: October 7, 2007)
Consumers Advocate, Inc.
Consumers Buyline, Inc.
Crosspoint Communication, Inc.
Ethilogia
Elite Housing Corporation
Elite Marketing Professionals, Inc. (Delaware; August 26, 1 999)
Essence Interactive
Ethletics LLC
Ethical Principles Inc.,
Ethical Publishing LLC (Delaware: August 26, 1999)
Ethical Value Exchange, Inc.
Events for Humanity, Inc. (Delaware: November 2, 2007)
Executive Housing & Properties, Inc. (Delaware: January 28, 2004)
Executive Housing & Properties, Inc. (New York State: January 9, 2004)
Executive Success Programs, Inc. (Delaware: July 20, 1998)
Executive Success Programs, Inc. (New York State: May 6, 2002)
First Principles Inc. (Delaware)
Grow Sport, Ltd. (Great Britain)
House of Equus LLC
In Lak Ech
International Center for Change, Inc. (New York State: October 14, 1992)
J. Cricket LLC
JM Tax Consulting
Jness
Karmar
Krunch Corporation
Las Casitas Rental
Moving Pix LLC
My Home, Inc.
Nataraja Center for Movement Arts
NXIVM Corporation (Puerto Rico: October 25, 2005)
NXIVM LLC, (NYS)
NXIVM Properties LLC, (NYS),
NX Trust
Occam’s Razor LLC
Our Evolution LLC
Peak Physique, Inc.
PERSENSEO, Inc. (Delaware)
POIESIS, Inc.
Precision Development, LLC (Nevada)
Rainbow Cultural Garden, Inc. (Delaware: September 7, 2007)
Rainbow Cultural Garden LLC
Remick Consulting (Delaware)
Rochester Media Management LLC
Signature Event Marketing Group
Slate River Farm, Inc.
Slate River Mobile LLC (Delaware)
Slate Sista Farm LLC
Spirit@19, Inc. (Delaware)
Sunshine Properties LLC
The Art of Movement, Inc. (Delaware: April 12, 2004)
The Athletics Foundation
The Dalai Lama Trust
The Ethical Foundation, Inc. (Fictitious)
The Ethical Foundation, Inc. (Massachusetts: January 22, 1979)
The Ethical Humanitarian Foundation
The Ethical Science Foundation (Delaware)
The First Foundation, Inc.
The Raniere Group, Inc. (Delaware: April 12, 1994)
The Think Fund, Inc. (Nevada: October 10, 2001)
The World Ethical Foundations Consortium
Truth LLC (Delaware: August 23, 2007)
Ultima ® (New York State: May 6, 2008)
Veinte Seiz LLC f7k/a Blue Skies LLC
Veinte Siete LLC f/k/a Charly’s Wings LLC
Village Hall LLC
Whare LLC
World Audience Productions LLC