6.Sentencing Decision and Imposition of Sentence

THE COURT: Thank you.

Before coming to an analysis on the 3553(a) factors it is important to say a word about what I will be considering in that analysis.

First I've reviewed the parties' sentencing submissions. I have read the 56 letters submitted in support of Mr. Raniere. Many of these letters express genuine belief that NXIVM and Raniere played a positive role in people's lives. Of course, I have also reviewed the many victims' letters that have been submitted. And I've listened carefully to the victims' statements made here today in court. I have heard and considered counsels' arguments and I have also considered the testimony introduced at Mr. Raniere's trial.

After a six-week trial over which I presided, the jury found Mr. Raniere guilty of Racketeering Conspiracy, Racketeering, Forced Labor Conspiracy, Wire Fraud Conspiracy, Sex Trafficking Conspiracy, and two counts of Sex Trafficking. Mr. Raniere was convicted of all 11 Racketeering acts submitted to the jury; to wit, Conspiracy to Commit Identity Theft and Unlawfully Possess Identification and Jane Doe 1; two acts of Sexual Exploitation of Minor, Jane Doe 2; Possession of Child Pornography; Conspiracy to Commit Identity Theft; Conspiracy to Alter Records for Use in an Official Proceeding; Conspiracy to Commit Identity of Jane Doe 3; Trafficking and Document Servitude of Jane Doe 4.; State Law Extortion; Sex Trafficking and Forced Labor of Jane Doe 5; and Conspiracy to Commit Identity Theft of Jane Doe 7.

THE COURT: The context in which Mr. Raniere committed these egregious crimes is by now well known. Mr. Raniere is the founder of an organization called NXIVM, a self-styled executive coaching and self-help organization that functioned as a pyramid scheme in which members paid thousands of dollars for various workshops and new members were recruited via the promise of payments or services for enrolling others into the scheme. Mr. Raniere made members of NXIVM call him the Vanguard and he maintained a rotating group of fifteen to twenty female NXIVM members with whom he had sexual relationships. These women were not permitted to have sexual relationships with anyone but Mr. Raniere or to discuss with others their relationship with Mr. Raniere.

In 2015, Raniere created a secret society called DOS or the Vow. As the PSR explains: DOS was comprised of all female masters who were NXIVM members who recruited and commanded groups of all female slaves. When identifying prospective slaves, masters often targeted women who were experiencing difficulties in their lives, including dissatisfaction with the pace of their advancement in NXIVM. Each DOS slave was expected to recruit slaves of her own, who in turn owed service not only to their masters but also to masters above them in the DOS pyramid. Raniere alone formed the top of the pyramid as the highest master. Other than Raniere, all participants in DOS were women. Raniere's status as head of the pyramid was concealed from all newly recruited slaves, other than those directly under Raniere. DOS masters persuaded slaves to join DOS by falsely describing it as a secret women's empowerment group and that the goal of DOS was to eradicate weaknesses in its members. Prospective slaves were required to provide collateral to prevent them from leaving the group or disclosing its existence to others. Collateral included sexually explicit photographs and videos of themselves, rights to financial assets, and videos or letters of true or not true confessions that would be damaging to the prospective slave's family members and friends.

After joining DOS, slaves were required to provide additional collateral, including sexually explicit photographs, and to pay tribute to their masters, including by performing tasks that would otherwise be compensable. In addition, several DOS slaves were directed to have sex with Raniere to maintain membership. In other words, DOS operated to abuse and exploit young women for sex, labor, and financial gain.

I now turn to the Section 3553(a) factors. The nature and circumstances of Mr. Raniere's conduct, as well as his history and characteristics and the need for his sentence to reflect the seriousness of the offense, all warrant a significant sentence. The evidence before me makes clear that Mr. Raniere's conduct was particularly egregious because he targeted and exploited girls and young women. He continued this abuse over the course of many years. And his abuse inflicted unimaginable trauma and damage on his victims. Take, for instance, his sexual exploitation of Camila. Mr. Raniere first met Camila when she was 13 years old. In their first conversation alone, they spoke about how Camila had just placed second in her eighth grade spelling bee contest.

Mr. Raniere began a sexual relationship with Camila two years later, when he was 45 and she was 15. He took naked pictures of 15-year-old Camila, something she describes as being "seared into my memory." Years after they met, Mr. Raniere told Camila he knew she was "special" ever since they first met each other when she was 13.

Mr. Raniere exerted control over this child in every way imaginable. As she puts it, "he used my innocence to do whatever he wanted with me not just sexually but also psychologically. He manipulated me into what he wanted, for his own reasons and for his own pleasure." Mr. Raniere directed Camila to overstay her visa, thereby giving him additional leverage over her, and he put her up in an apartment where he would, "come in the house, have sex, and leave." He controlled and manipulated her in every way. He told her he needed a "vow of absolute obedience," and that she had "to be happy whenever you are with me because my time means that much." In one message, Mr. Raniere wrote her: "If you want me to come tonight, I will under these conditions: There will be no talking. You will meet me at the door in the outfit you think I would find sexiest. You will arouse me, we will make love for my satisfaction and pleasure. You will do everything you can to provide that. I will finish and leave. Do you agree yes or no?"

When Camila had a relationship with another man, Mr. Raniere "punished her emotionally, psychologically, and sexually." He branded her. As Camila tells the Court: "I hold scars on my body from him that can never be erased. They carry immense emotional and psychological pain. They are a reminder of his cruelty and manipulation. He knew exactly what he was doing, even asking me at some point if having his initials on my body would keep me from being with other people. He drew pleasure from knowing he had marked me. I was his. Even when I got a tattoo to cover his mark, it was not enough to disguise the pain and shame it reminds me of." Mr. Raniere's abuse of Camila was cruel to the point of inhumane. He made her ask his permission for almost everything, including to contact her family and to cut her hair.

At one point, Camila messaged Raniere, "I feel like I have a gun pointed at me and I'm just trying to say what you want to hear so you won't shoot but I don't know what it is you want to hear." Simply put, the harm he inflicted upon her is incalculable.

Mr. Raniere had many other victims. Mr. Raniere, along with others, trafficked Daniela into the United States, and she began working for Raniere. Mr. Raniere initiated a sexual relationship with Daniela when she was 18 years old; as he did with many of the girls and women he had sexual relationships with, Mr. Raniere instructed Daniela to keep their relationship a secret. When Daniela developed feelings for another man, Mr. Raniere told her parents that she had committed an "ethical breach."

To punish Daniela, Mr. Raniere ordered that she be confined to a room in her parents' home without human contact. At Mr. Raniere's instruction, Lauren Salzman, one of the "First Line" DOS members, threatened Daniela that if she left the room, she would be sent to Mexico without any identification documents.

Like his treatment of Camila, Mr. Raniere's treatment of Daniela was particularly cruel because of the psychological harm he inflicted on her at such a young age. Forced to remain in her room for months and months on end, Daniela testified that one of the worst aspects of her kidnapping was the feeling that, "I'm in a world where nobody cares that I'm losing my life," and thinking that "it was clearly never going to end."

It is necessary for me to mention at this juncture a letter submitted in support of Mr. Raniere that I received from Hector, the father of Daniela and Camila. I am frankly baffled why anyone thought this letter would help Mr. Raniere. In the letter, Mr. Fernandez waxes nostalgic about how Mr. Raniere helped him run a marathon, before turning to slandering his own daughter, Daniela, calling her a liar and a thief, and implying she had no one but herself to blame for what happened to her. Let me be clear: I find Mr. Fernandez's letter, in support of the man who abused his own daughters, a disgrace.

And, to Daniela, who is here today in the courtroom, let me also be clear: What happened to you is not your fault, and I am deeply impressed with your courage and resilience. And that goes for all the victims who have spoken today, either in-person or by video or audio.

Turning back to Mr. Raniere, his operation of DOS to exploit women was ruthless and unyielding. One "slave" was ordered to "seduce" Mr. Raniere by sending him naked photographs of her every day. She was later taken to his house where he performed unwanted oral sex on her and took more photographs of her. Mr. Raniere blindfolded another "slave," and tied her down to a table while a third person performed unwanted oral sex on her. Several former DOS "slaves" testified that they were terrified to leave or speak out against DOS out of fear that their collateral would be released. All the while, Mr. Raniere also benefitted financially, as DOS slaves were coerced into providing labor and services for their "masters" and Mr. Raniere. Mr. Raniere perpetrated these crimes over the course of many years, and his conduct harmed a great many people. More than 90 individuals have submitted victim impact statements to the Court in connection with this sentencing, describing the harm that his criminal conduct inflicted on them.

What is clear to me, from all of this, is that the offenses of which the jury convicted Mr. Raniere are cruel, perverse, and extremely serious. They targeted the most vulnerable among his community, and they inflicted untold damage. As one of Mr. Raniere's victims wrote: "I can never fully explain how much damage Keith Raniere has caused me and so many others. The psychological impact of his twisted teachings permeate my brain even after two-plus years of consistent therapy. His sexual abuse and humiliation of me, lives in my body and wreaks havoc with my soul if I am not completely diligent. Nightmares fill my head almost weekly, and the things he taught me to think about myself have made me neglect my health and cause myself undue pain on countless occasions."

Taking account of the nature of the offenses of conviction, as well as Mr. Raniere's history and characteristics and the seriousness of his offenses, makes abundantly clear that a significant sentence is not just appropriate, but necessary.

In determining an appropriate sentence, I also consider the need for the sentence that I impose to reflect the seriousness of the offense, promote respect for the law, and provide general and specific deterrence. I find that a review of these factors also counsels in favor of a significant sentence. Despite everything that has happened and despite the countless victims who have given voice to their great pain, Mr. Raniere remains unmoved. Indeed, he maintains his innocence.

To him, the brave victims who have spoken out about the abuse suffered at his hands including those who spoke today are liars. The women who have courageously testified to his sexual exploitation of them are liars, too; in fact, they all just wanted to be with him. And the six-week trial he was afforded before a jury of his peers was simply inconsequential. Mr. Raniere has therefore not only failed to demonstrate remorse for his conduct, but he also maintains to this day that he has done nothing wrong. As recently as November 2019, he described DOS as "good; not just good and even noble, but great and vitally important for women and humanity."

Having presided over his trial, and having sat here today and listened to Mr. Raniere's victims, I find it deeply troubling that he thinks of DOS in those terms. To make matters worse, he and his counsel, funded by an unlimited war chest courtesy of co-conspirator Clare Bronfman, are engaged in a public relations campaign to cast doubt on the integrity of the judicial system and the jury verdict. Ultimately, Mr. Raniere's lack of remorse, coupled with his view that the conduct for which he was convicted was actually "noble," strongly suggests the need for a significant sentence. The need to promote respect for the law and for deterrence warrants a significant sentence in yet another respect. In his attempts to silence his critics and maintain control of his criminal enterprise, Mr. Raniere repeatedly obstructed justice and demonstrated a disregard for the rule of law. In one instance, he worked to alter videotapes that were produced in discovery in a federal lawsuit.

When DOS victims began to speak out publicly, Mr. Raniere worked to silence them, including orchestrating a threatening letter to be sent to the victims through counsel in Mexico. In every aspect of his conduct, Mr. Raniere has acted as though the law does not apply to him. Unfortunately for him, that is not the case.

I have considered the range of sentences that are available, and the range suggested by the Sentencing Guidelines. I have also considered the need to avoid unwarranted sentence disparities between Mr. Raniere and other defendants who have been convicted of similar conduct. Finally, I have considered the appropriateness of imposing a fine, as I am obligated to do subject to 18 U.S.C. Section 3571, unless I find that Mr. Raniere is unable to pay. Section 3571(b) permits me to impose a fine on each count of up to $250,000, for a total of $1,750,000. In addition to the factors I noted already, Section 3572(a) sets out additional factors that I must consider in determining whether to impose a fine and, if I do, what the amount should be. These factors include Mr. Raniere's ability to pay and the financial burden that a fine will impose on him or anyone else. They also include the expected cost to the Government of his sentence. The Guidelines fine range for Mr. Raniere's offenses is between $50,000 and $250,000. I find that Mr. Raniere has the ability to pay a significant fine. As I have already explained, I find the seriousness of Mr. Raniere's conduct and the extreme harm he has caused justify a serious sentence.

As one aspect of that sentence I am imposing the statutory maximum fine of $1,750,000 payable immediately. I direct the Government to place a lien on the estate of Pamela Cafritz, to which Mr. Raniere is alleged to be the sole inheritor, to secure payment of the fine.

Are you ready to be sentenced?

THE COURT: Please stand with your lawyers.

Applying the statutory factors to this case, I find a significant sentence to be plainly justified. As I have explained, each of the Section 3553(a) factors counsel in favor of such a sentence. Though I have highlighted today particularly egregious aspects of Mr. Raniere's campaign of manipulation, exploitation, and abuse, no words can adequately communicate the lasting pain, trauma, and hardship he has caused so many.

I, therefore, sentence Mr. Raniere as follows: On Count 1 for Racketeering Conspiracy, 40 years in the custody of the Attorney General to be served concurrently with the sentence on Count 2 and consecutively with all other sentences imposed. On Count 2, for Racketeering, 40 years in the custody of the Attorney General, to be served concurrently with the sentence on Count 1 and consecutively with all other sentences imposed.

On Count 6, Forced Labor Conspiracy, 20 years in the custody of the Attorney General, to be served consecutively with all other sentences imposed. On Count 7, for Wire Fraud Conspiracy, 20 years in the custody of the Attorney General, to be served consecutively with all other sentences imposed. On Count 8, for Sex Trafficking Conspiracy, 40 years in the custody of the Attorney General, to be served concurrently with the sentences on Counts 9 and 10, and consecutively with all other sentences imposed. On Count 9, Sex Trafficking of Jane Doe 5, 40 years in the custody of the Attorney General, to be served concurrently with the sentences on Counts 8 and 10, and consecutively with all other sentences imposed.

On Count 10, for Sex Trafficking of Jane Doe 8, 40 years in the custody of the Attorney General, to be served concurrently with the sentences on Counts 8 and 9, and consecutively with all other sentences imposed.

I am imposing 40-year concurrent sentences on Counts 1 and 2, a 20-year sentence on Count 6, a 20-year sentence on Count 7, and 40-year concurrent sentences on Counts 8, 9, and 10, for a cumulative sentence of 120 years.

I also impose sentences of supervised release, to be served concurrently with one another. On Count 1, five years; Count 2, five years; Count 6, 3 years; Count 7, 3 years; Count 8, life; Count 9, life; Count 10, life.

Additionally, I impose a $250,000 fine on each count of conviction, for a total of $1,750,000, payable immediately; a $700 Special Assessment, also due immediately; and a $15,000 assessment pursuant to the Justice for Victims of Trafficking Act of 2015. Any claims of restitution under 18 U.S.C. Section 3664(d)(5) must be submitted within 90 days of today's order.

You may be seated. I'm going to impose certain specific terms is for your supervised release. They are as follows:

The defendant shall comply with any applicable state and/or federal sex offender registration requirements, as instructed by the probation officer, the Bureau of Prisons, or any state offender registration agency in the state where he resides, works, or is a student. The defendant shall participate in a mental health treatment program, which may include participation in a treatment program for sexual disorders, as approved by the U.S. Probation Department.

The defendant shall contribute to the cost of such services rendered and/or any psychotropic medications prescribed to the degree he is reasonably able, and shall cooperate in securing any applicable third-party payment. The defendant shall disclose all financial information and documents to the Probation Department to assess his ability to pay. As part of the treatment program for sexual disorders, the defendant shall participate in polygraph examinations to obtain information necessary for risk management and correctional treatment.

The defendant shall not associate with or have any contact with convicted sex offenders unless in a therapeutic setting and with the permission of the U.S. Probation Department. The defendant shall not associate with children under the age of 18, unless a responsible adult is present and he has prior approval from the Probation Department. Prior approval does not apply to contacts which are not known in advance by the defendant where children are accompanied by a parent or guardian or for incidental contacts in a public setting. Any such non-pre-approved contacts with children must be reported to the Probation Department as soon as practicable, but no later than 12 hours. Upon commencing supervision, the defendant shall provide to the Probation Department the identity and contact information regarding any family members or friends with children under the age of 18, whom the defendant expects to have routine contact with, so that the parents or guardians of these children may be contacted and the Probation Department can approve routine family and social interactions such as holidays and other family gatherings where such children are present and supervised by parents or guardians without individual approval of each event.

If the defendant cohabitates with an individual who has residential custody of minor children, the defendant will inform that other party of his prior criminal history concerning his sex offense. Moreover, he will notify the party of his prohibition of associating with any children under the age of 18, unless a responsible adult is present. The defendant shall submit his person, property, house, residence, vehicle, papers, computers as defined in 18 U.S.C. Section 1030(e)(1) other electronic communications or data storage devices or media, or office, to a search conducted by a United States probation officer. Failure to submit to a search may be grounds for revocation of release.

The defendant shall warn any other occupants that the premises may be subject to searches pursuant to this condition. An officer may conduct a search pursuant to this condition only when reasonable suspicion exists that the defendant has violated a condition of his supervision and that the areas to be searched contain evidence of this violation. Any search must be conducted at a reasonable time and in a reasonable manner.

The defendant is not to use a computer, Internet capable device, or similar electronic device to access pornography of any kind. The term "pornography" shall include images or video of adults or minors engaged in "sexually explicit conduct" as that term is defined in Title 18, U.S.C. Section 2256(2). The defendant shall also not use a computer, Internet capable device or similar electronic device to view images of naked children. The defendant shall not use his computer to view pornography or images of naked children stored on related computer media, such as CDs or DVDs, and shall not communicate via his computer with any individual or group who promotes the sexual abuse of children.

The defendant shall also cooperate with the U.S. Probation Department's Computer and Internet Monitoring program. Cooperation shall include, but not be limited to, identifying computer systems, Internet capable devices, and/or similar electronic devices the defendant has access to, and allowing the installation of monitoring software/hardware on said devices, at the defendant's expense. The defendant shall inform all parties that access a monitored computer, or similar electronic device, that the device is subject to search and monitoring. The defendant may be limited to possessing only one personal Internet capable device, to facilitate our department's ability to effectively monitor his/her Internet related activities.

The defendant shall also permit random examinations of said computer systems, Internet capable devices, similar electronic devices, and related computer media, such as CDs, under his control.

The defendant shall report to the Probation Department any and all electronic communications service accounts as defined in 18 U.S.C. Section 2510(15) used for user communications, dissemination and/or storage of digital media files i.e. audio, video, images. This includes, but is not limited to, e-mail accounts, social media accounts, and cloud storage accounts.

The defendant shall provide each account identifier and password, and shall report the creation of new accounts, changes in identifiers and/or passwords, transfer, suspension and/or deletion of any account within 5 days of such action. Failure to provide accurate account information may be grounds for revocation of release. The defendant shall permit the Probation Department to access and search any accounts using the defendant's credentials pursuant to this condition only when reasonable suspicion exists that the defendant has violated a condition of his supervision and that the accounts to be searched contains evidence of this violation. Failure to submit to such a search may be grounds for revocation of release. Upon request, the defendant shall provide the U.S. Probation Department with full disclosure of his financial records, including co-mingled income, expenses, assets and liabilities, to include yearly income tax returns. With the exception of the financial accounts reported and noted within the presentence report, the defendant is prohibited from maintaining and/or opening any additional individual and/or joint checking, savings, or other financial accounts, for either personal or business purposes, without the knowledge and approval of the U.S. Probation Department.

The defendant shall cooperate with the probation officer in the investigation of his financial dealings and shall provide truthful monthly statements of his income and expenses. The defendant shall cooperate in the signing of any necessary authorization to release information forms permitting the U.S. Probation Department access to her financial information and records.

The defendant shall not have contact with any of the named victims of his offenses. This means that he shall not attempt to meet in person, communicate by letter, telephone, or through a third party, without the knowledge and permission of the Probation Department. The defendant shall not associate in person, through mail, electronic mail or telephone with any individual with an affiliation to Executive Success Programs, NXIVM, DOS or any other NXIVM-affiliated organizations; nor shall the defendant frequent any establishment, or other locale where these groups may meet pursuant, but not limited to, a prohibition list provided by the U.S. Probation Department.

You have the right to appeal your sentence and your conviction in the United States Court of Appeals for the Second Circuit. You should discuss with your attorneys at once whether you wish to appeal.

Is there anything else from the Government?