NXIVM's connections to state, federal, and international government

Frank Parlato, a former publicist for NXIVM, laments that, “None of the branding and blackmail would have happened if the government wasn’t so incompetent.” But perhaps the government wasn't so much incompetent as complicit, as the corporation's political connections on state, federal, and international levels might suggest.

“It honestly surprised me that Keith [Raniere] was arrested,” said Chet Hardin, a journalist who has followed the NXIVM story for years and was quoted in TheAlt.com. “It could be that his old allies aren’t in power anymore but the Times Union ran a story about the group that detailed allegations of child rape and there was crickets from the government, so what happened?”

Many allege that not only the government but also our legal system have allowed the upper eschelon of NXIVM to exert incredible power, especially over people it considers to be enemies. “I don’t think anyone can understand how much she suffered because of NXIVM,” Hardin said, referring to a former girlfriend of founder Keith Raniere, named Toni Natalie, “but the legal system allowed them to abuse her to no end after she left. If Toni was filing a bankruptcy, they were there challenging it. They can document dump all this pointless stuff, all these meaningless legal actions and motions. She’s not a rich person but she still has to respond and it’s been a drain on her resources for decades–the legal system allowed NXIVM to perpetrate this.”

And if NXIVM was benefitting from its connections to members of government, many believe that result was well-planned. Rick Ross of The Ross Institute (which tracks cult-like groups) was quoted in Religion News Blog as saying, “I have heard that Sara and Clare Bronfman for some time have been making donations to political campaigns in the hope of ultimately … garnering influence for their mentor, Keith Raniere and his organization, NXIVM.” Both Sara and Clare Bronfman, heiresses to the Seagrams fortune, are heavily involved in NXIVM and have provided incredible amounts of financial support.

Whistleblower Joseph O'Hara, involved in a civil suit against NXIVM, alleges in the complaint that the corporation also flouts tax laws: “Based upon information and belief, the NXIVM/ESP-related business entities also do not issue W-2 Forms and/or 1099 Forms with respect to the various commissions and salaries that they pay to their respective staff — and/or with respect to the various nonbusiness related expenditures that they make on behalf of Raniere/Vanguard.”

According to Little Sis, NY Magazine asks and answers this pertinent question about NXIVM: “Why should we pay attention to this psycho factory? Because it has well-placed, well-heeled members and appears to be actively pursuing an entrée into political fund-raising.”

Bill and Hillary Clinton have been recipients of much of that fund-raising. All told, NXIVM executives and their families donated close to $30,000 to Hillary Clinton's 2008 presidential campaign. And the Bronfman sisters are members of the Clinton Global Initiative, where annual donations are required for membership.

Clare Bronfman also contributed $2,400 to Senator Gillibrand's 2010 campaign. It was Gillibrand's father, Doug Rutnik, who worked as an attorney for NXIVM and was paid $25,000 per month. However, he paid his earnings back as a result of an aggressive lawsuit against him, filed by NXIVM when he allegedly wanted to quit working for the company.

Litigation has often been used to punish whistleblowers or just members who wanted to leave the organization. Several journalists have been sued by NXIVM under the Computer Fraud and Abuse Act. The company claims these journalists gained access to the NXIVM website by using the password of a former client. These lawsuits have been allegedly financed by the Bronfman sisters. Richard Johnson, writing for Page Six, reports, “Court records show that the group, said to have spent more than $1 million a month on legal fees, has been involved in more than 50 lawsuits over the years.”

Clare Bronfman is acting as head of NXIVM in the wake of Raniere's arrest and absence.

Note: FCIC = Financial Crisis Inquiry Commission

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