NEW YORK (AP) — An heiress to the Seagram's liquor fortune and three
other people were arrested on Tuesday in connection with the
investigation of a self-improvement organization accused of branding
some of its female followers and forcing them into unwanted sex.
Clare
Bronfman, 39, a daughter of the late billionaire philanthropist and
former Seagram chairman Edgar Bronfman Sr., surrendered to the FBI and
pleaded not guilty to racketeering charges.
She was freed from
custody following a late-afternoon court appearance where she pledged to
post a $100 million bond to ensure her return to court.
U.S.
District Judge Nicholas Garaufis set the high amount after hearing
prosecutors label her a flight risk and learning she has a net worth of
roughly $200 million, including a stake in an island resort in Fiji.
Bronfman,
who appeared in court wearing flip-flops and a T-shirt, didn't comment
as she left a federal courthouse in Brooklyn. She was to remain under
house arrest following her release.
A former competitor in
international equestrian show jumping competitions, Bronfman is accused
in an indictment of taking a number of steps to help NXIVM's founder and
leader, Keith Raniere, exercise control over members of the upstate New
York group, including identity theft, interception of electronic
communications and money laundering.
She was part of an "inner
circle" of loyalists who "committed a broad range of serious crimes from
identity theft and obstruction of justice to sex trafficking, all to
promote and protect Raniere and NXIVM," U.S. Attorney Richard Donoghue
said in a statement.
Raniere was arrested in Mexico this year and
was brought to the U.S. to face charges that he, along with an adherent,
the TV actress Allison Mack, coerced followers into becoming slaves to
senior members.
In a statement, a lawyer for Bronfman, Susan
Necheles, called the charges "the result of government overreaching and
charging an individual with crimes just because the government disagrees
with some beliefs taught by NXIVM and held by Clare."
"We are confident that Clare will be exonerated," she said.
Also
arrested Tuesday were Nancy Salzman, who was the organization's
longtime president; her daughter, Lauren Salzman; and a former
bookkeeper for the group, Kathy Russell. All three were released on bail
without entering pleas.
Despite criticism for years by
ex-followers who called NXIVM a cult and a pyramid scheme, the
organization's intense self-improvement classes had, at one point,
earned it thousands of adherents, including some with Hollywood ties.
They included Nicki Clyne, an actress who appeared on "Battlestar
Galactica"; Bronfman's sister Sara Bronfman; a son of former Mexican
president Carlos Salinas de Gortari; and India Oxenberg, a daughter of
"Dynasty" actress Catherine Oxenberg.
In an indictment,
prosecutors say Mack, who played a teenage friend of Superman in the CW
network's "Smallville," helped Raniere recruit women to a secret
sub-society within NXIVM whose members were branded by way of a surgical
tool with a symbol that resembled his initials. Women were expected to
be subservient to "masters," prosecutors said, including giving in to
demands for sex.
The arrest of Bronfman, who has long been
affiliated with NXIVM, wasn't a surprise. At a court hearing in June, a
judge rejected an attempt to get Raniere released on $10 million bail
paid for by Bronfman after prosecutors labeled her a co-conspirator.
In
earlier court filings, the government detailed how Bronfman gave away
tens of millions of dollars of her fortune to support Raniere and his
group, including paying for private air travel at a cost of $65,000 a
flight. It also said Bronfman has "paid for numerous lawyers to bring
suits against Nxivm critics."
In a website post last year,
Bronfman called the secret society a "sorority" that "has truly
benefited the lives of its members, and does so freely." She added, "I
find no fault in a group of women (or men for that matter) freely taking
a vow of loyalty and friendship with one another to feel safe while
pushing back against the fears that have stifled their personal and
professional growth."
Raniere and Mack have also denied the
allegations. In their court papers, the defense lawyers have said the
supposed victims of the group were never abused and were in fact
"independent, smart, curious adults" searching for "happiness,
fulfillment and meaning."
Raniere, Mack and some of the other defendants were expected to appear together at a pretrial hearing on Wednesday in Brooklyn.