United States v. Raniere

Citation384 F.Supp.3d 282
Decision Date29 April 2019
Docket Number18-CR-204-1 (NGG) (VMS)
Parties UNITED STATES of America, v. Keith RANIERE, Defendant.
CourtUnited States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)

Moira Kim Penza, Tanya Hajjar, Alicia Nicole Washington, Karin K. Orenstein, Kevin M. Trowel, Mark Joseph Lesko, Shannon Cassandra Jones, United States Attorneys Office, Brooklyn, NY, for United States of America.

Avraham C. Moskowitz, Moskowitz & Book, LLP, Marc A. Agnifilo, Jacob Kaplan, Teny Rose Geragos, Brafman & Associates, P.C., New York, NY, Paul DerOhannesian, II, Danielle Renee Smith, DerOhannesian & DerOhannesian, Albany, NY, for Defendant.

MEMORANDUM & ORDER

NICHOLAS G. GARAUFIS, United States District Judge.

Defendant Keith Raniere has been indicted on charges arising from his involvement in several hierarchical pyramid-structured organizations he founded. (Second Superseding Indictment ("Indictment") (Dkt. 430) ¶¶ 1-49.) These organizations included Nxivm, which purported to offer self-help courses, and "DOS," a secret society that purported to be a women's empowerment group. (Compl. (Dkt. 1) ¶ 17; Indictment ¶¶ 1-3, 42.) The Indictment charges him with racketeering (or "RICO") conspiracy, in violation of 18 U.S.C. § 1962(d) ("Count One") (id. ¶¶ 13-26); and with racketeering, in violation of 18 U.S.C. 1962(c) ("Count Two") (id. ¶¶ 16-40). It also charges Raniere with participation in a forced labor conspiracy, in violation of 18 U.S.C. § 1589(a) ("Count Six") (id. ¶ 44); wire fraud conspiracy, in violation of 18 U.S.C. § 1343 ("Count Seven") (id. ¶ 45); and sex trafficking offenses, in violation of provisions of 18 U.S.C. § 1591 ("Count Eight," "Count Nine," and "Count Ten") (id. ¶¶ 46-48).

Before the court are Raniere's motions to dismiss various counts and predicate racketeering acts in the Indictment, for a bill of particulars, for prompt disclosure of exculpatory materials pursuant to Brady v. Maryland, 373 U.S. 83, 83 S.Ct. 1194, 10 L.Ed.2d 215 (1963), to preclude the Government's proposed experts, and for an order allowing foreign witnesses to testify via live videoconferencing. (Keith Raniere Mot. to Dismiss Indictment, for a Bill of Particulars, for Brady Materials, and for Foreign Trial Testimony ("Raniere Mot.") (Dkt. 456).) The court DENIES Raniere's motions for the following reasons.

I. BACKGROUND
A. The Government's Factual Allegations1
1. Nxivm and DOS

The Government alleges in its complaint that, in or about 1998, Raniere founded Executive Success Programs, Inc. ("ESP"), a series of workshops designed (according to its promotional literature) to "actualize human potential." (Compl. ¶ 3.) In or about 2003, Raniere founded an organization called Nxivm, which served as an umbrella organization for ESP and other affiliated entities. (Id. ) Nxivm promoted itself as a "professional business providing educational tools, coaching and trainings to corporations and people from all walks of life," and described its philosophy as "a new ethical understanding" that allows "humanity to rise to its noble possibility." (Id. )

Nxivm was headquartered in Albany, New York, and recruited members from around the world, including from the Eastern District of New York. (Id. ¶ 5.) It offered classes in various cities within the United States and abroad, which cost up to $ 5,000 for a five-day workshop. (Id. ¶ 6.) Nxivm encouraged its participants to continue attending classes and to recruit others into Nxivm in order to be promoted within the organization and thereby reach certain "goal levels." (Id. ) The Nxivm curriculum allegedly taught, among other things, that women had inherent weaknesses including "overemotional" natures," an inability to keep promises, and embracing the role of victim. (Id. ¶ 17.)

In 2015, Raniere created a secret society called "DOS,"2 which is structured like a pyramid with levels of "slaves" headed by "masters." (Id. ¶¶ 11, 13.) DOS slaves were expected to recruit slaves of their own, who in turn would owe service to their own masters and to masters above. (Id. ¶ 13.) All DOS participants were women except for Raniere, whose status as the highest DOS master was allegedly concealed from newly recruited slaves, other than those directly under Raniere. (Id. ¶ 14.)

DOS masters recruited slaves mostly from Nxivm. (Id. ¶ 15.) Masters targeted dissatisfied women by telling them that DOS would change their lives and that, to join DOS, they would need to provide "collateral" to ensure they would not leave the group or tell others about it. (Id. ¶¶ 15-19.) Collateral included sexually explicit photographs and videos; rights to financial assets; videos made to look to look candid in which the prospective slaves told damning stories (true or untrue) about themselves, friends, or family members; and letters making damaging accusations (true or untrue) about friends and family members. (Id. ¶¶ 16, 18.)

After joining DOS, slaves were required to provide additional collateral every month; all DOS slaves were ultimately made to provide more collateral than had initially been described to them. (Id. ¶¶ 18-19.) Slaves were also obligated to perform "acts of care" for and pay "tribute" to their masters by bringing them coffee, buying them groceries, making them lunch, carrying their luggage, cleaning their houses, and retrieving lost items for them, among other things.3 (Id. ¶ 20.) Allegedly, DOS members understood that the slaves' acts of care should amount to the master having the work of at least one full-time employee. (Id. )

Beyond acts of care, slaves were regularly given assignments by their masters. (Id. ¶ 22.) Some masters allegedly gave their slaves assignments that either directly or implicitly required them to have sex with Raniere. (Id. ) Other assignments required slaves to adhere to extremely low-calorie diets and to document the food they ate, which was meant to accommodate Raniere's sexual preference for thin women. (Id. ) Other women were assigned to periods of celibacy. (Id. ) Slaves who were assigned to have sex with Raniere believed that not doing so would risk release of their collateral. (Id. ¶ 23.)

Allegedly, DOS masters profited from directing slaves to have sex with Raniere by receiving the acts of care that came with continued status and participation in DOS, and by receiving increased status and financial opportunities within Nxivm more broadly. (Id. ¶ 24; see Indictment ¶ 4.) Additionally, Raniere promised career opportunities to the slaves who had sex with him and with whom he wanted to have sex. (Compl. ¶ 24.)

The Government's complaint further alleges in detail that Raniere and co-conspirators engaged in sex trafficking and a forced-labor conspiracy with respect to Jane Doe 1 between February 2016 and May 2017 (Compl. ¶¶ 42-51), and sex trafficking with respect to Jane Doe 2 between November 2016 and May 20174 (id. ¶¶ 52-57).

2. The Alleged Enterprise

According to the Indictment, in leading Nxivm, DOS, and other affiliated pyramid-structured entities (the "Pyramid Organizations"), Raniere relied on an inner circle of individuals who carried out his directives and held high positions in the Pyramid Organizations. (Indictment ¶¶ 1-3.) This inner circle (the "Enterprise") was allegedly a criminal enterprise, as defined in the RICO statute, see 18 U.S.C. § 1961(4).5 (Id. )

The Enterprise operated within the Eastern and Northern Districts of New York and elsewhere, including overseas. (Id. ¶ 5.) Its alleged purpose was to obtain financial and personal benefits for its members, including increased power and status within the Enterprise, by promoting Raniere and recruiting others into the Pyramid Organizations. (Id. ¶ 4.) Its members accomplished this by, among other things, "[p]romoting, enhancing and protecting the Enterprise by committing, attempting and conspiring to commit crimes, including but not limited to visa fraud, identity theft, extortion, forced labor, sex trafficking, money laundering, wire fraud, tax evasion, and obstruction of justice" (id. ¶ 6(a)); "[d]emanding absolute commitment to Raniere," including by "exalting" his teachings and ideology and not tolerating dissent (id. ¶ 6(b)); "[i]nducing shame and guilt" to influence members and associates of the Enterprise (id. ¶ 6(c)); "[o]btaining sensitive information about members and associates of the Enterprise" to control them (id. ¶ 6(d)); "[r]ecruiting and grooming sexual partners for Raniere" (id. ¶ 6(e)); "[i]solating associates and others from friends and family and making them dependent on the Enterprise for their financial well-being and legal status in the United States" (id. ¶ 6(f)); "[p]rotecting and attempting to protect Raniere and the Enterprise by ... gaining political influence and evading regulatory agencies" (id. ¶ 6(g)); "[u]sing harassment, coercion and abusive litigation to intimidate and attack perceived enemies and critics of Raniere" (id. ¶ 6(h)); and "[e]ncouraging associates and others to take expensive Nxivm courses, and incur debt to do so, as a means of exerting control over them and to obtain financial benefits for the members of the Enterprise" (id. ¶ 6(i)).

B. Procedural History
1. Charges

The Indictment contains eleven counts. (Indictment.) When the Indictment was filed on March 13, 2019, Raniere, Bronfman, Mack, Russell, and Lauren Salzman were joined in a single count charging a racketeering conspiracy in violation of 18 U.S.C. § 1962(c), predicated on acts indictable under thirteen criminal statutes (twelve of them federal), spanning from approximately 2003 to March 2018 ("Count One"). (Id. ¶¶ 13-15.) Count One does not specify who agreed to commit which acts, or when each act, was committed, but does state that each Defendant agreed that a conspirator would commit at least two predicate acts. (Id. ¶ 15.)

Raniere, Bronfman, Mack, and Lauren Salzman were also charged with racketeering in violation of 18 U.S.C. 1962(c) ("Count Two"). (Id. ¶¶ 16-40). This count is predicated on fourteen acts spanning from roughly to 2003 a...

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