Nxivm loses assets claim | The Fall Of NXIVM
Skip to content
  • Home
  • The Book
  • About
    • Toni Natalie
    • Chet Hardin
  • The Coverage
  • Contact

The Fall of NXIVM

  • Home
  • The Book
  • About
    • Toni Natalie
    • Chet Hardin
  • The Coverage
  • Contact

The Coverage Archives

A library archiving NXIVM related coverage throughout the years.

Categories: Clare Bronfman · Edgar Bronfman · Executive Success Programs · Joe O'Hara · Joseph O'Hara · Keith Raniere · Nancy Salzman · NXIVM · Pam Cafritz · Rick Ross · Toni Natalie

Nxivm loses assets claim

Published by Times Union on September 13, 2005

By Dennis Yusko

ALBANY – A federal judge denied a motion on Monday by Nxivm Corp. to freeze the assets of Albany businessman Joe O’Hara, and the company withdrew its lawsuit against him and submitted it in state Supreme Court in Manhattan. Nxivm and 11 staffers alleged in a suit filed in August in U.S. District Court in Albany that O’Hara, the former owner of sports teams in Albany, unlawfully acted as their attorney, and used the position to improperly acquire $317,000 in payments and $2 million in loans from them between 2003 and 2005.
O’Hara argued in legal responses last week that Nxivm’s claims were incorrect and dishonest, and accused the company, founded by Keith Raniere and Nancy Salzman of Halfmoon, of tax fraud.

On Monday, U.S. District Court Judge Gary L. Sharpe rejected the suit’s restraining order and injunction request seeking to put O’Hara’s assets on hold.

“I’m pleased with the outcome, and it’s not unexpected given the facts in this matter,” O’Hara said. “My concern, of course, is that Keith Raniere and Nancy Salzman will pursue this matter the same way they are pursuing (other legal cases), and that they’ll appeal today’s denials up to and including the U.S. Supreme Court.”
Nxivm (pronounced “NEX-ee-um”) already has a few cases pending before federal district courts in Albany, including a bankruptcy case against Raniere’s ex-girlfriend, and an attempt to knock criticism of it off a critic’s Web site.

Nxivm will not appeal Monday’s rulings, its attorney, Judd Burstein, said. It withdrew the suit from federal court in Albany and immediately submitted it in the state Supreme Court in Manhattan, he said.

“We think the judge’s decision is as wrong as it can be, but we’re not going to waste time-fighting over that,” said Burstein, who practices law in Manhattan.

The goal now is to get the case to trial as soon as possible, he said. Nxivm prefers to litigate in New York City, where one of the 11 plaintiffs resides, Burstein said.

“I have an overwhelming case supported by extraordinary, documented evidence. My dog could try this case against a jury and find this case against Mr. O’Hara,” Burstein said.

Neither O’Hara nor his attorney, William J. Dreyer, responded to the change of venue.

O’Hara is not licensed to practice law in New York, and he denied Nxivm’s charge that he represented himself as an attorney. Rather, Nxivm employed him as a consultant from 2003 until recently, when he resigned based on discomfort with the company, he said.

“I never practiced law in New York state, nor do I intend to,” said O’Hara, former owner of the Capital Region Pontiacs basketball team and former president of Albany Professional Football, which owned the Albany Firebirds.

Nxivm, also called Executive Success Programs, holds self-improvement seminars off New Karner Road in Colonie.

It and 11 employees, including Clare and Sara Bronfman, the daughters of Edgar Bronfman Sr. of the Seagram’s fortune, and Pamela Cafritz, daughter of Washington, D.C., socialites William and Buffy Cafritz, sued O’Hara for allegedly embezzling six-figure sums and lying about collateral for $2 million in loans from the Bronfmans.

It seeks damages and punitive costs.

The suit also names Albany attorney Douglas Rutnik and O’Hara’s ex-wife, Denise Polit, as co-defendants, saying O’Hara received several thousands of dollars in kickbacks from them after Nxivm hired them based upon his advice.

Rutnik and Polit knowingly benefited from O’Hara’s fraudulent activities, the suit claims.

One scheme Nxivm accuses O’Hara of improperly profiting from is the company’s formation of a nonprofit, tax-exempt organization dedicated to scientific advancement called The Ethical Foundation.

It says O’Hara recommended to Nxivm that Polit operate the organization and then received kickbacks.

O’Hara calls the charges false. He responded that the $2 million loans were arranged by Salzman, and payments aren’t due until Dec. 31, 2006.

And, in a legal affidavit submitted last week, he alleges that Nxivm intended to use The Ethical Foundation as a vehicle to perpetrate “a massive tax-fraud scheme” not related to scientific research.

His concerns were exacerbated when he learned that Raniere and Salzman allegedly had convinced Clare and and Sara Bronfman to transfer approximately $22 million out of private accounts to the foundation, O’Hara stated.

All Nxivm funds given to him for the foundation have been transferred to the state Attorney General’s Office, O’Hara said. The office did not return a call seeking confirmation of that.

Also, unreachable Monday was Edgar Bronfman Sr., who once took a Nxivm course, but in October 2003 told Forbes Magazine that he thought Nxivm was “a cult” and had stopped speaking with his daughters.
Nxivm applied to build a 65,000-square-foot headquarters in Halfmoon, but the plan hasn’t advanced in years.

Click here for original

Support ethical journalism. If you hit a paywall, please pay; our journalists are our first line of defense against disinformation. Thank you to Poynter Institute, Albany Times Union, The Buffalo News, and The New York Times — and so many others for your truthfulness, accuracy, and fact-based work.

Post navigation

Previous PostNew vision for mind in eye of the beholder
Next PostRuling lets Web site critical of NXIVM stay online

    Categories

    • Allison Mack (14)
    • Andrew Cuomo (1)
    • Anthony Ames (2)
    • Barbara Bouchey (11)
    • Barbara Jeske (1)
    • Bonnie Piesse (1)
    • Brandon Porter (1)
    • Brendan Lyons (1)
    • Catherine Oxenberg (5)
    • Chet Hardin (24)
    • Christine Marie (1)
    • Clare Bronfman (46)
    • Consumers' Buyline (12)
    • Dalai Lama (4)
    • Damon Brink (2)
    • Danielle Roberts (3)
    • David Soares (10)
    • Dennis Yusko (3)
    • Donald Trump (1)
    • DOS (3)
    • Eastern District (12)
    • Edgar Bronfman (4)
    • Emiliano Salinas (2)
    • Executive Success Programs (17)
    • Frank Parlato (49)
    • Frank Parlato Jr. (50)
    • Frank Report (50)
    • G. Steven Pigeon (5)
    • George Santos (1)
    • Gina Hutchinson (1)
    • Gina Melita (1)
    • Heidi Hutchinson (1)
    • Hillary Clinton (3)
    • Holly Trexler (2)
    • India Oxenberg (2)
    • Interfor (6)
    • Jack Casey (4)
    • James Odato (5)
    • Jennifer Kobelt (1)
    • Joe Bruno (5)
    • Joe O'Hara (18)
    • John Tighe (3)
    • Joseph O'Hara (17)
    • Joseph Tully (6)
    • Juval Aviv (9)
    • Karen Unterenrier (2)
    • Keith Raniere (87)
    • Kristin Keeffe (17)
    • Kristin Kreuk (2)
    • Kristin Snyder (8)
    • Lauren Salzman (5)
    • LeBaron (3)
    • Margaret Singer (1)
    • Mark Vicente (6)
    • Mary Jane Pino (1)
    • Mexico (6)
    • Michael Sutton (2)
    • Moria Kim Penza (4)
    • Nancy Salzman (45)
    • Nicki Clyne (9)
    • NXIVM (118)
    • O'Connell & Aronowitz (3)
    • Pam Cafritz (12)
    • Pamela A Nichols (3)
    • Paul A. Grenga (2)
    • Paul DerOhannesian (1)
    • Penn & Teller (1)
    • Rex Smith (1)
    • Richard Mays (5)
    • Rick Ross (28)
    • Roger Stone (11)
    • Roger Stone (1)
    • Sally Brink (1)
    • Sara Bronfman (28)
    • Sarah Edmondson (6)
    • Senior U.S. District Judge Nicholas Garaufis (5)
    • Soukaina Mehdaoui (1)
    • Steve Rombom (1)
    • Steven Pigeon (15)
    • Suneel Chakravorty (1)
    • Susan Dones (8)
    • Suzanna Andrews (2)
    • Svetlana Kotlin (1)
    • The Niagara Reporter (2)
    • The Program (14)
    • Times Union (5)
    • Toni Natalie (52)
    • Western District of New York (4)
    • Yuri Plyam (3)

    Publications

    • Times Union (40)
    • The Buffalo News (11)
    • Reddit (8)
    • New York Post (7)
    • Metroland (5)
    • Niagara Gazette (4)
    • Niagara Falls Reporter (4)
    • New York TImes (3)
    • Kernwatch (2)
    • Artvoice (2)
    • Vanity Fair (2)
    • Pink Shade With Erin Martin (2)
    • The Sanctuary for Independent Media (2)
    • Courthouse News (2)
    • Poynter (2)
    • Daily Mail (2)
    • Oxygen - True Crime (2)
    • Lockport Union-Sun & Journal (2)
    • Cult Education Institute (1)
    • Forbes (1)
    • Cult News -Cult Education Institute (1)
    • New York Mag - Intelligencer (1)
    • The Village Voice (1)
    • Chicago Tribune (1)
    • LittleSis.org (1)
    • SwamiVivekananda.net (1)
    • Internet Archive (1)
    • Casetext (1)
    • Niagara Post (1)
    • Toronto Star (1)
    • Chicago Sun-Times (1)
    • Jezebel (1)
    • MTV News (1)
    • Columbia Journal Review (1)
    • Melville House (1)
    • The Daily Gazette (1)
    • The Nation (1)
    • Man Making (1)
    • WNYT (1)
    • Syracuse.com (1)
    • New York Daily News (1)
    • Page Six (1)
    • NYup.com (1)
    • Democrat & Chronicle (1)
    • Frank Report (1)
    • Slate (1)
    • Vice (1)
    • ABC 13 WHAM (1)
    • BBC (1)
    • Time (1)
    • Spectrum News (1)
    • ET (1)
    • WAMC (1)
    • Radar Online (1)
    • Roberta Glass True Crime Report (1)
    • Matt D'Elia Is Confused (1)
    • The Collaborative (1)
    • Parallax Views w/ J.G. Michael (1)
    • THE CUT (1)
    • House of Mystery Radio Show NBC News Radio (1)
    • ELLE (1)
    • PREVAIL by Greg Olear (1)
    • Fox News (1)
    • Seven Days (1)
    • gothamist (1)
    • CISION PR Newswire (1)
    • Wikipedia (1)
    • CNN (1)
    • Florida Bulldog (1)
    • Yahoo (1)
    • The Vow Part Two - HBO (1)
    • News 10 -ABC Albany New York (1)
    • One American Podcast (1)

    Bylines

    • Dennis Yusko (16)
    • Robert Gavin (12)
    • Chet Hardin (7)
    • James M. Odato (6)
    • incorruptible_bk (6)
    • Rick Pfeiffer (5)
    • Jennifer Gish (4)
    • Emily Saul (4)
    • Aaron Besecker (3)
    • Frank Parlato Jr. (3)
    • James Odato (3)
    • Frank Parlato (3)
    • Dan Herbeck (2)
    • Erin Martin (2)
    • Jon Campbell (2)
    • Kristen Hare (2)
    • Chris Spargo (2)
    • Melissa Roberto (2)
    • Andrew Denney (2)
    • Gina Tron (2)
    • Phil Fairbanks (1)
    • James Heaney (1)
    • Agnes Palazzetti (1)
    • Carl Allen (1)
    • Carolyn Raeke (1)
    • Charles Anzalone (1)
    • Douglas Turner (1)
    • Robert J. MacCarthy (1)
    • Elizabeth O'Mara (1)
    • Stephanie Desmon (1)
    • Gene Warner (1)
    • Andrew Rusiniak (1)
    • Michal Kuzma (1)
    • David Orenstein (1)
    • Lillian Boncore (1)
    • John Hochman M.D. (1)
    • Michael Freedman (1)
    • Cult Education Institute (1)
    • Nancy A. Fischer (1)
    • Gail Franklin (1)
    • Rick Forgione (1)
    • Jeane MacIntosh (1)
    • Intelligencer (1)
    • CHRIS THOMPSON (1)
    • Thomason Dialog (1)
    • Steve Schmadeke (1)
    • Mike I Niman (1)
    • Geoff Kelly (1)
    • Kevin Connor (1)
    • Suzanna Andrews (1)
    • Joseph J. O'Hara (1)
    • Bernard Schenkler, Esq. (1)
    • William F. Savno, Esq. (1)
    • Lenny Palumbo (1)
    • Niagara Post (1)
    • Laura Kane (1)
    • Michael Calleri (1)
    • Doug Barry (1)
    • Max Evry (1)
    • Sara Morrison (1)
    • Sal Robinson (1)
    • Justin Mason (1)
    • William D. Cohan (1)
    • Mark Sommer (1)
    • Tony Farina (1)
    • Barry Meier (1)
    • Kumi Tucker (1)
    • Geoff Herbert (1)
    • Andrew Keshner (1)
    • Priscilla DeGregory (1)
    • The Tribune News Services (1)
    • Sarah Trefethen (1)
    • Leon Krauze (1)
    • Sarah Berman (1)
    • Amanda Ottaway (1)
    • Colin Moynihan (1)
    • Jasmine Aguilera (1)
    • Lia Eustachewich (1)
    • Reuven Fenton (1)
    • Nick Rummell (1)
    • Jaclyn Cangro (1)
    • Stacy Lambe (1)
    • Joe Donahue (1)
    • Ebony Bowden (1)
    • Roberta Glass (1)
    • Ati Abdo MacDonald (1)
    • Matt D'Elia (1)
    • David Howard King (1)
    • J.G. Michael (1)
    • Kate Sheehy (1)
    • Katie Heaney (1)
    • Alan Warren (1)
    • Mike Browne (1)
    • Rose Minutaglio (1)
    • The Sanctuary for Independent Media (1)
    • Kevin O'Toole (1)
    • Greg Olear (1)
    • Paul Heintz (1)
    • Vanity Fair (1)
    • Maki Becker (1)
    • Patrick Lakamp (1)
    • Chris Churchill (1)
    • Ronald Sullivan Law, PLLC (1)
    • Thomas J. Prohaska (1)
    • Sonia Moghe (1)
    • The Associated Press (1)
    • SenseAccording9978 (1)
    • Bret Stephens (1)
    • Dan Christensen (1)
    • The Vow Part Two - HBO (1)
    • James Moses (1)
    • Giuliana Bruno (1)
    • Ayla Ferrone -Fitzpatrick (1)
    • Chase Geiser (1)
    • Rick Alan Ross (1)

Tell us your story

Do you have a story to share about Keith Raniere, NXIVM, DOS, Consumers' Buyline Inc, or National Health Network? Contact us here. This is confidential. Your information will not be shared without your permission.

About the authors

Toni Natalie spent eight years with Keith Raniere, as his girlfriend and business partner. She watched as he  transformed himself from multi-level marketing guru into the cult leader known as Vanguard. When Toni finally left him, he threatened her: “I will see you dead or in jail.” He was half right.

Chet Hardin is the only journalist to play a midnight game of volleyball with actress Allison Mack, Seagram heiress Clare Bronfman, and the now-notorious Keith Raniere.

Contact details

Toni Natalie
[email protected]

Follow on Twitter: @thefallofnxivm

Buy The Program

© The Fall of NXIVM • 2017 to 2025