In federal court in Brooklyn, Nancy Salzman, also known as “Prefect,” the former president and co-founder of Nxivm, and a Clifton Park resident has been sentenced to 42 months imprisonment and ordered to pay a $150,000 fine by United States District Judge Nicholas G. Garaufis for racketeering conspiracy, including predicate acts of conspiracy to commit identity theft and conspiracy to obstruct justice.  Salzman pleaded guilty in March 2019.

“In her misguided loyalty and blind allegiance to Keith Raniere, the defendant engaged in a racketeering conspiracy designed to intimidate Nxivm’s detractors and that inflicted harm on Nxivm’s members,” stated Acting U.S. Attorney Kasulis.  “Today’s sentence holds the defendant accountable for her crimes and we hope that it brings some measure of closure to the vulnerable women who were victimized and abused.”  Kasulis also expressed her appreciation to the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.

“Serving as Raniere’s right hand for more than a decade, Nancy Salzman’s conduct supported Nxivm’s objectives to recruit victims, stave off critics and alter evidence connected to a federal lawsuit. Today’s sentence does little to erase the suffering of Nxivm’s victims, but it serves as another reminder of the government’s commitment to seeing this case through to the end,” stated FBI Assistant Director-in-Charge Driscoll.

Between August 2005 and November 2008, Nancy Salzman, along with Raniere, participated in the unlawful surveillance and investigation of perceived critics and enemies of Raniere and Nxivm.  As part of the scheme, Nancy Salzman agreed to unlawfully surveil these perceived enemies in an attempt to gain advantage over them and stop them from criticizing the company.  On March 27, 2018, a search warrant was executed on Salzman’s residence.  Law enforcement agents recovered a box containing purported private banking information of many individuals perceived to be critics and enemies of Raniere, including journalists, judges and an expert on cults.

Raniere was convicted by a federal jury of racketeering and racketeering conspiracy, sex trafficking, attempted sex trafficking and sex trafficking conspiracy, forced labor conspiracy and wire fraud conspiracy.  On October 27, 2020, Raniere was sentenced to 120 years’ imprisonment.  On September 30, 2020, Nxivm executive board member Clare Bronfman was sentenced to 82 months’ imprisonment for identity theft and immigration offenses. On April 19, 2019, Kathy Russell, a bookkeeper for Nxivm, pleaded guilty to visa fraud and is awaiting sentencing.