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Seagram’s Liquor Heiress Charged in Nxivm Sex-Trafficking Case Seagram’s Liquor Heiress Charged in Nxivm Sex-Trafficking Case
(about 3 hours later)
Clare Bronfman, an heiress to the Seagram’s liquor fortune, pleaded not guilty on Tuesday in federal court in Brooklyn after her arrest on conspiracy and racketeering charges in connection with her role at Nxivm, a self-help group that prosecutors call a pyramid scheme and former members say is a cult.Clare Bronfman, an heiress to the Seagram’s liquor fortune, pleaded not guilty on Tuesday in federal court in Brooklyn after her arrest on conspiracy and racketeering charges in connection with her role at Nxivm, a self-help group that prosecutors call a pyramid scheme and former members say is a cult.
Ms. Bronfman was released on a $100 million bond — roughly half of her net worth, according to her lawyer, Susan Necheles — and, after a sometimes contentious hourlong bail hearing, was ordered placed under house arrest by United States District Judge Nicholas G. Garaufis. Ms. Bronfman will have to wear an ankle monitor at her New York apartment under the terms of her release and must return to court on Friday with assets totaling $50 million to put up as security for her bail.Ms. Bronfman was released on a $100 million bond — roughly half of her net worth, according to her lawyer, Susan Necheles — and, after a sometimes contentious hourlong bail hearing, was ordered placed under house arrest by United States District Judge Nicholas G. Garaufis. Ms. Bronfman will have to wear an ankle monitor at her New York apartment under the terms of her release and must return to court on Friday with assets totaling $50 million to put up as security for her bail.
Ms. Bronfman was one of four people arrested in New York State on Tuesday after the unsealing of an updated seven-count indictment against Keith Raniere, leader of the now defunct-group, and five others in his “inner circle,” federal prosecutors said in the indictment.Ms. Bronfman was one of four people arrested in New York State on Tuesday after the unsealing of an updated seven-count indictment against Keith Raniere, leader of the now defunct-group, and five others in his “inner circle,” federal prosecutors said in the indictment.
Mr. Raniere, 57, was arrested earlier this year in Mexico and brought to New York to face federal sex-trafficking charges. Prosecutors said he and one of his followers, Allison Mack, 35, an actress known for her work in “Smallville,” coerced female members to have unwanted sex with him and branded them with a symbol containing his initials. Mr. Raniere is being held without bail in Brooklyn to await trial.Mr. Raniere, 57, was arrested earlier this year in Mexico and brought to New York to face federal sex-trafficking charges. Prosecutors said he and one of his followers, Allison Mack, 35, an actress known for her work in “Smallville,” coerced female members to have unwanted sex with him and branded them with a symbol containing his initials. Mr. Raniere is being held without bail in Brooklyn to await trial.
As Ms. Bronfman appeared in Federal District Court in Brooklyn, three other leaders in Nxivm (pronounced Nex-e-um) were arrested near the group’s former headquarters near Albany and brought before Magistrate Judge Daniel Stewart to answer to the charges contained in the racketeering conspiracy indictment. The judge set bail at $25,000 for Kathy Russell, 60, Nxivm’s longtime bookkeeper, and $5 million each for its longtime president, Nancy Salzman, 64, and her daughter, Lauren Salzman, 42.As Ms. Bronfman appeared in Federal District Court in Brooklyn, three other leaders in Nxivm (pronounced Nex-e-um) were arrested near the group’s former headquarters near Albany and brought before Magistrate Judge Daniel Stewart to answer to the charges contained in the racketeering conspiracy indictment. The judge set bail at $25,000 for Kathy Russell, 60, Nxivm’s longtime bookkeeper, and $5 million each for its longtime president, Nancy Salzman, 64, and her daughter, Lauren Salzman, 42.
Ms. Bronfman is the daughter of the late liquor magnate Edgar Bronfman. She is described in the indictment as a member of Nxivm’s executive board and one of the group members “accorded special positions of trust and privilege” by Mr. Raniere for carrying out “his directives.”Ms. Bronfman is the daughter of the late liquor magnate Edgar Bronfman. She is described in the indictment as a member of Nxivm’s executive board and one of the group members “accorded special positions of trust and privilege” by Mr. Raniere for carrying out “his directives.”
Past defenders — including Ms. Bronfman, in an internet post last year — called the group a dynamic self-improvement and fellowship organization. But prosecutors maintain it was a moneymaking criminal enterprise that relied on theft, intimidation and coercion to stay afloat, even as it forced some recruits into sexual slavery.Past defenders — including Ms. Bronfman, in an internet post last year — called the group a dynamic self-improvement and fellowship organization. But prosecutors maintain it was a moneymaking criminal enterprise that relied on theft, intimidation and coercion to stay afloat, even as it forced some recruits into sexual slavery.
The updated indictment charges the six defendants with money laundering, extortion, obstruction of justice, forced labor, sex trafficking, identity theft and harboring of undocumented immigrants.The updated indictment charges the six defendants with money laundering, extortion, obstruction of justice, forced labor, sex trafficking, identity theft and harboring of undocumented immigrants.
But in arguing for her client’s release before trial, Ms. Necheles said none of the three charges leveled specifically at Ms. Bronfman, including identity theft and money laundering, were violent, unlike the forced-labor and sex-trafficking charges against other defendants.But in arguing for her client’s release before trial, Ms. Necheles said none of the three charges leveled specifically at Ms. Bronfman, including identity theft and money laundering, were violent, unlike the forced-labor and sex-trafficking charges against other defendants.
Prosecutors accused Ms. Bronfman of conspiring to steal email user names and passwords of Mr. Raniere’s critics in order to monitor their communications. She was also charged with helping to smuggle an undocumented immigrant into the United States for Mr. Raniere’s financial gain and taking part in a scheme to run up charges on a credit card that belonged to one of his former sexual partners who had died, prosecutors said.Prosecutors accused Ms. Bronfman of conspiring to steal email user names and passwords of Mr. Raniere’s critics in order to monitor their communications. She was also charged with helping to smuggle an undocumented immigrant into the United States for Mr. Raniere’s financial gain and taking part in a scheme to run up charges on a credit card that belonged to one of his former sexual partners who had died, prosecutors said.
Critics of Nxivm have said it was Ms. Bronfman’s millions that allowed Mr. Raniere to operate freely until his arrest in Mexico. One self-described former member, Toni Natalie, who sat in the courtroom on Tuesday to watch the proceedings, said afterward that she never knew Ms. Bronfman personally. “I’ve only felt the power of her money,” she said.Critics of Nxivm have said it was Ms. Bronfman’s millions that allowed Mr. Raniere to operate freely until his arrest in Mexico. One self-described former member, Toni Natalie, who sat in the courtroom on Tuesday to watch the proceedings, said afterward that she never knew Ms. Bronfman personally. “I’ve only felt the power of her money,” she said.
“I would like them to feel the weight that they put on other people,” said Ms. Natalie, who has said she is an ex-girlfriend who saw Mr. Raniere evolve from a charismatic marketing executive to a controlling leader who demanded followers’ obedience.“I would like them to feel the weight that they put on other people,” said Ms. Natalie, who has said she is an ex-girlfriend who saw Mr. Raniere evolve from a charismatic marketing executive to a controlling leader who demanded followers’ obedience.
The hearing for Ms. Bronfman shed few new details on Nxivm’s inner workings, but gave a glimpse of her considerable wealth. Ms. Necheles said Ms. Bronfman was worth around $200 million, with about half tied up in trusts supervised by Goldman Sachs, and the remainder in real estate in New York, California and Fiji, where she bought an island for $47 million. The hearing for Ms. Bronfman revealed few new details about Nxivm’s inner workings, but gave a glimpse of her considerable wealth. Ms. Necheles said Ms. Bronfman was worth around $200 million, with about half tied up in trusts supervised by Goldman Sachs, and the remainder in real estate in New York, California and Fiji, where she bought an island for $47 million.