How NXIVM, a so-called self-help company, crumbled after former members exposed it as a cult that abused sex slaves

Kelly McLaughlin,Nicole EinbinderOct 1, 2020, 04:36 IST

Allison Mack leaves Federal court Tuesday, April 24, 2018, in the Brooklyn borough of New York.AP Photo/Frank Franklin II

NXIVM was formed by Keith Raniere and Nancy Salzman in the 1990s and billed itself as a self-help multi-level marketing company.
The company ceased operations last year after a New York Times exposé alleged that female members were used as sex slaves within the group.
The exposé prompted a federal investigation, and several members, including Raniere and "Smallville" actress Allison Mack, were charged with federal crimes.
Raniere was found guilty of sex trafficking and other charges last year.

When NXIVM first formed in the 1990s, it was billed as a self-help multi-level marketing company that offered professional development seminars.

But over the three years, the organization has fallen apart after a New York Times exposé alleged that female members were branded and used as sex slaves by the group's founder, Keith Raniere.

The exposé prompted a federal investigation and the arrests of several members, including Raniere and "Smallville" actress Allison Mack.

A number of defendants ultimately pleaded guilty and admitted to allegations made in The Times' piece, including blackmail and enslaving members.

NXIVM has since shut down, Raniere was found guilty of sex trafficking and related charges and is in jail awaiting his sentencing.

On Wednesday, Clare Bronfman, a multimillionaire heiress to the Seagram's liquor fortune who was also a leader in NXIVM, was sentenced to 81 months in prison.

Here's everything you need to know about NXIVM and the criminal case against the organization.

Keith Raniere launched NXIVM as a self-help company in the 1990s.

The NXIVM Executive Success Programs sign outside of the office at 455 New Karner Road on April 26, 2018 in Albany, New York. Photo by Amy Luke/Getty Images

The meaning of the company's name, which is pronounced like the heartburn medication Nexium, is unclear.

The exterior of the NXIVM Executive Success Programs office at 455 New Karner Road on April 26, 2018 in Albany, New York. (Photo by Amy Luke/Getty Images

Journalists started labeling the company as a pyramid scheme in the early 2000s.

Attorneys representing NXIVM leader Keith Raniere, Mark Agnifilo, right, and Paul DerOhannesian, II, center, leave following Raniere's arraignment in federal court on Friday, April 13, 2018, in New York. AP Photo/Kevin Hagen

Cult experts told local media that Raniere was probably running a cult in 2012.

The exterior of the former townhome of NXIVM founder Keith Raniere at 3 Flintlock Lane in Clifton Park, New York on Thursday, May 3, 2018. Photo by Amy Luke/Getty Images

October 17, 2017: The New York Times published an exposé about NXIVM’s branding ritual and sex slave allegations.

Actress Catherine Oxenberg, left, with Stanley Zareff and Toni Natalie, talks to the press following the arraignment of NXIVM leader Keith Raniere in federal court on Friday, April 13, 2018, in New York. AP Photo/Kevin Hagen

The exposé prompted an investigation by the Department of Justice.

Attorneys representing NXIVM leader Keith Raniere in a sex trafficking case, Mark Agnifilo, second from left, and Paul DerOhannesian, second from right, prepare to hold a news briefing outside Brooklyn Federal Court. AP Photo/Bebeto Matthews

March 26, 2018: Raniere was arrested and charged with sex trafficking after fleeing to Mexico following The Times' exposé.

In this courtroom sketch Keith Raniere, second from right, leader of the secretive group NXIVM, attends a court hearing Friday, April 13, 2018. Elizabeth Williams via AP

March 30, 2018: "Smallville" actress Kristin Kreuk explains reports that she was part of NXIVM.

Kristin Kreuk

April 20, 2018: "Smallville" actress Allison Mack was arrested and and charged with sex trafficking and forced labor.

Allison Mack leaves Federal court Tuesday, April 24, 2018, in the Brooklyn borough of New York. AP Photo/Frank Franklin II

Mack pleaded not guilty to charges.

Allison Mack leaves Brooklyn federal court in New York, Monday, Jan. 28, 2019. AP Photo/Seth Wenig

April 21, 2018: The New York Post reported that NXIVM moved its operations to Brooklyn.

Clare Bronfman, left, leaves federal court, Tuesday, July 24, 2018, in the Brooklyn borough of New York. AP Photo/Mary Altaffer

May 4, 2018: Raniere pleaded not guilty and his attorney said "everything was consensual."

Actress Catherine Oxenberg, left, arrives at federal court with Stanley Zareff and Toni Natalie, who is Keith Raniere's ex girlfriend, for the arraignment of NXIVM leader Raniere on Friday, April 13, 2018, in New York. AP Photo/Kevin Hagen

May 30, 2018: Mack told The New York Times that she instituted the branding ritual.

Television actress Allison Mack leaves federal court in New York, Thursday, Dec. 6, 2018. AP Photo/Seth Wenig

June 12, 2018: NXIVM suspended all operations.

The exterior of the NXIVM Executive Success Programs office at 455 New Karner Road on April 26, 2018 in Albany, New York. Photo by Amy Luke/Getty Images

July 24, 2018: Four more people, including heiress Clare Bronfman were arrested and charged with racketeering and conspiracy for their roles in NXIVM.

Clare Bronfman leaves Brooklyn federal court in New York, Monday, Jan. 28, 2019. Court papers say a trust largely funded by Seagram's liquor fortune heiress Bronfman is bankrolling the defense for her co defendants in a sex trafficking case. AP Photo/Seth Wenig

March 13, 2019: Nancy Salzman pleaded guilty, saying in court that she tracked and monitored women as part of NXIVM.

Nancy Salzman, exits following a hearing on charges in relation to the Albany-based organization Nxivm at the United States Federal Courthouse in Brooklyn at New York. REUTERS/Brendan McDermid

March 14, 2019: Prosecutors alleged that Raniere had sex with a 15-year-old girl and charged him with child pornography.

Mark Agnifilo and Paul DerOhannesian, attorneys representing Keith Raniere and Allison Mack, speak to reporters following a status conference where Raniere was again denied bail, at the U.S. District Court for the Eastern District of New York, June 12, 2018 in the Brooklyn borough of New York City. Photo by Drew Angerer/Getty Images

March 27, 2019: Bronfman fainted in court after being asked if Michael Avenatti was her lawyer.

Clare Bronfman, center, a member of NXIVM, an organization charged with sex trafficking, arrives at Brooklyn Federal Court, Monday, April 8, 2019, in New York. AP Photo/Mark Lennihan

April 2, 2019: Lauren Salzman pleaded guilty, admitting she enslaved a woman for just over two years.

Lauren Salzman, a co defendant in the sex trafficking and racketeering Nxivm cult, departs the Brooklyn Federal Courthouse, following a hearing in New York. REUTERS/Brendan McDermid

April 8, 2019: Mack reverses her not guilty plea and pleads guilty to one count of racketeering conspiracy and one count of racketeering.

Actress Allison Mack leaves Brooklyn federal court Monday, April 8, 2019, in New York. Mack pleaded guilty to racketeering charges on Monday in a case involving a cult like group based in upstate New York. AP Photo/Mark Lennihan

April 19, 2019: Bronfman pleads guilty for conspiring to conceal and harbor an undocumented immigrant and for fraudulent use of identification.

Clare Bronfman, center, a member of NXIVM, an organization charged with sex trafficking, arrives at Brooklyn Federal Court with her lawyer Mark Geragos, Monday, April 8, 2019, in New York. AP Photo/Mark Lennihan

May 7, 2019: Raniere's trial begins in Brooklyn's Federal District Court.

Led by John Marzulli (L), Public Information Officer for the U.S. Attorneys Office of the Eastern District of New York, staff and members of the prosecution team push carts full of court documents related to the U.S. v. Keith Raniere case as they arrive at the U.S. District Court for the Eastern District of New York. Photo by Drew Angerer/Getty Images

June 19, 2020: Raniere was convicted in the sex-trafficking case against him.

Keith Raniere, center, sits with attorneys Paul DerOhannesian, left, and Marc Agnifilo during closing arguments at Brooklyn federal court, Tuesday, June 18, 2019 in New York. Elizabeth Williams via AP

January 28, 2020: More than 80 people filed a lawsuit against NXIVM, accusing the group fo operating a Ponzi scheme.

In this April 13, 2018 courtroom sketch, Keith Raniere, center, leader of the secretive group NXIVM, attends a hearing at court in the Brooklyn borough of New York. Associated Press

September 30, 2020: Clare Bronfman was sentenced to nearly 7 years in prison for her role in NXIVM.

Clare Bronfman, an heiress of the Seagram's liquor empire, following her arraignment on charges of racketeering and conspiracy in relation to the Albany-based organization Nxivm at the United States Federal Courthouse in Brooklyn at New York, U.S., June 24, 2018. REUTERS/Brendan McDermid

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