In 1998 a new multi-level marketing company entered the scene called NXIVM (pronounced “NEKS-ee-em”). They reportedly offered personal and professional self development seminars through an “Executive Success Program” of large-group awareness trainings.
NXIVM ceased operations in 2018 amid a scandal of brainwashing, blackmail, racketeering and sex-trafficking. This was a classic pyramid scheme, meaning there was nothing good to be found within the company or its trainings for anyone.
In August, HBO began a docu-series entitled “The Vow”, that sheds light on the case.
The Players and the Draw
NXIVM was founded by Keith Raniere. Raniere learned MLM strategy as an Amway associate during the 1980’s. He also spent time studying and learning about Scientology and neuro-linguistic programming. In 1990, he created Consumer’s Buyline, Inc. – his own MLM.
But by 1993, after 20 states launched investigations into the company, Consumers Buyline was shut down by federal investigators as a pyramid scheme. He tried launching a few other MLM’s, but they did not take off.
He had a chance meeting with nurse and trained hypnotist, Nancy Salzman. Together they created the Executive Success Program, which was later branded “NXIVM”.
Within NXIVM, his closest associate was actress Allison Mack, who was known for her role in Smallville. Allison Mack only joined the organization in 2010. In her role of recruiting new members she would use blackmail to coerce them into having sex with Raniere.
She was paid for her services by Raniere and later sentenced for racketeering, which she plead guilty to.
In the Beginning…
In the beginning, the organization seemed like any other MLM. It would bring members in for the Executive Success Programs (or ESP’s), and members would recruit other members into the program.
Raniere was able to draw a large number of well-known celebrities into the business, as well as a number of successful entrepreneurs, one of which was Edgar Bronfman, a Seagram’s heir. The association with well-known celebrities made everyday citizens want to be a part of the organization.
During the seminars, attendees were expected to call Raniere and Salzman “Vanguard” and “Prefect”, respectively. Within the organization, the idea behind the titles, was that Raniere was the leader of a philosophical movement and Salzman was his first student.
Turning Point . . . Or Tipping Point
In the early 2000’s cult allegations began to emerge. Although their training remains a trade secret, it reportedly used a technique that, within the organization, was called, “Rational Inquiry”. This supposedly helped to facilitate personal and professional development.
In October 2003 Forbes Magazine published an article about NXIVM and Raniere. In it, they quoted Edgar Bronfman, who had been invited to take one of the courses by his daughter, as saying, “it’s a cult”. Apparently Raniere and others at NXIVM though the article would be positive and were surprised when it was not.
The DOS
It wasn’t until 2017 that media articles were published detailing a subgroup called “Dominus Obsequious Sororium”, or DOS for short. “Dominus Obsequious Sororium” is a Latin phrase best translated to “Master over Slave Women”.
Media articles pictured the group as a “secret sisterhood” within NXIVM, in which female members were allegedly called slaves. They were further branded with the initials of Raniere and Mack, and subjected to corporal punishment from their “masters”. They were required to provide nude photos or other potentially damaging information about themselves as “collateral”. Law enforcement alleges they were forced into sexual slavery.
Actress Sarah Edmonston left NXIVM after she became inducted into DOS in her Albany, NY home. She shared the gruesome details of the ritual that took place during initiation.
Exposing the Truth
In December 2017 ABC’s 20/20 aired an exposé featuring many former NXIVM members, including Edmonston and other former members. Several reported financial and sexual predation by NXIVM leaders.
Other news programs followed, including a CBC podcast Uncover, which aired a segment entitled “Escaping NXIVM”.
Criminal Charges
In March 2018 Raniere was arrested and indicted on charges related to DOS and various sex trafficking offenses, conspiracy and conspiracy to commit forced labor.
On June 19, 2019 he was finally convicted of racketeering and sex trafficking.
Others closely associated with NXIVM and/or DOS have also been tried and charged in related offenses These include Salzman, Mack and others.
The Bottom Line
It’s interesting to me that things took so long to unravel and that the organization was able to operate for such a long time without being discovered for what it was.
It’s difficult to know if an organization is a pyramid scheme, not offering any real value, or something worthwhile. If you look into an organization, and the hair on the nape of your neck goes up, trust your instincts.
NOTE OF CAUTION: Just because fancy gurus or well-known celebrities are part of an organization, that does not mean it is worth spending your time or money on. What’s more, there could be more to it than meets the eye, and the price therein could be much more dangerous.
Well, this is a very good post you have here and I really like the fact that you’re able to give me this information about how it works. I have never heard about it even though they started out around the time I was born and I also agree that it stunned the whole country. Good information here. Thanks!
Hello there! Thank you very much for sharing this article. I’ve gone through it and I must say I really did enjoy the read. The article is well detailed and contains valuable information, you’ve done a commendable job. To be sincere, this is the first Time I’m hearing of NXIVM but from the details you dropped, it seems like I’ve known it for a long time. Wow, this article further proves that don’t join an organization because famous people are there or because you want to get close to famous people. Thank you for the eye opener
You are so welcome, Sophie!
Wow! So so disappointed on Allison Mack. I had her as one of my favorite female actress celebrity. I was a fan of her when I started watching Small Ville until now. But how could a bad MLM like this operate for a very long time undetected? So sad for those that have been sex trafficked. A very big lesson learnt here. Not every MLM business is genuine. So just like you’ve rightly said, when we feel uncomfortable at the thought of something, we should better leave. But this was done in other dimension by blackmailing people into it as part of their recruitment process. This is terrible. Thanks for the heads-up.
Hello there, thanks a lot for sharing this wonderful piece of information here with us. I must say i really did enjoyed going through your review as it contains valuable information’s one needs to he aware of before joining such organizations. I am happy i came across this in time so i will not fall a victim, i will share this with others as well, thanks
Hello there, thanks a lot for sharing this wonderful piece of information here with us. I must say i really did enjoyed going through your review as it contains valuable information’s one needs to he aware of before joining such organizations. I am happy i came across this in time so i will not fall a victim, i will share this with others as well, thanks
An outstanding text. This is one of the things we all have to count on when starting an online business because we never know what we are getting into. However, it is unfortunate that so many people were deceived, and it is even more unfortunate that the organizers even came up with such an idea. This is a good lesson that what celebrities do is not always the smartest choice and that we do not have to follow them blindly. Certainly this text draws attention to not embarking on a new business unless we are completely sure that it is not a scam. Thank you for that Marsha!
You are so very welcome, Jelena! As marketers, we need to watch what we are getting into.
An outstanding text. This is one of the things we all have to count on when starting an online business because we never know what we are getting into. However, it is unfortunate that so many people were deceived, and it is even more unfortunate that the organizers even came up with such an idea. This is a good lesson that what celebrities do is not always the smartest choice and that we do not have to follow them blindly. Certainly this text draws attention to not embarking on a new business unless we are completely sure that it is not a scam. Thank you for that Marsha!
Hello Marsha, I read your article, and I agree with your sensibility message. We must be careful where we invest our money. This story is a strong message and a good lesson to everyone that is in the online marketing business and not only. I shared your article because everyone must know what kind of fraudulent and pyramid schemes exist in this world where we live and work every day.
Thanks for sharing this article.
Best
Alketa
Alketa, thanks for the share. Yes, this is an important lesson.
Hi,
From my online studies about nxivm is a multi level marketing company that started operation in 2018, A man who claimed to be a self-help guru, but actually ran what authorities called a cult like secret society of sex slaves, was found guilty of racketeering and sex trafficking. The verdict ended a six-week trial that revealed haunting details about Keith Raniere and his Albany area group NXIVM, where followers were coerced into sex, blackmailed and branded with Raniere’s initials. Jurors in Brooklyn’s Federal District Court convicted him on all federal charges and he could now face life in prison.
Thank you.
Aluko.
Wow! This is definitely an interesting one to unearthen here and I honestly find this to be of value here. I actually value what has been shared here and it makes so much sense to me. I like the way this nxivm was finally exposed and the true intentions showed out to everyone out there. Thanks for this here
This article is detailed. I love it because you really worked on it and gave us adequate information. I learned that the fact that some well known individuals are involved in something does not mean it’s good, real or legitimate. Before you join any group, make proper enquiry and be sure of it. Thank you for this wonderful article
Wow, mind blowing story. Everyday hundreds of thousands of people are searching for personal and professional self development. The thought of getting involved in a life changing situation for the worst is terrifying. This article is proof you have to be careful who you trust and everything that glitters isn’t gold. Thanks for this insightful article.
Wow, I have not heard of NXIVM (thank you for the pronunciation) before, so this was a very informative and eye opening article. I was fascinated to read that the founders managed to keep the charade up for nearly twenty years. We are so often duped into thinking that because a celebrity of famous entrepeneur is supporting or buying something that it must be good.
You are so right, there could be more than meets the eye. Thank goodness the guilty parties have been convicted.
Gratitude to the article writers and publishers that managed to raise awareness for such disgraceful acts on NXIVM till action was taken. Although Keith Raniere is well thought, I do believe that he allowed for DOS to happen under his watch since none of his previous business had seen success. Maybe it was just his plan b to make things work. It’s best for users to do thorough research about the founder’s history before engaging on their platforms. Also, just avoid MLM at all costs. Nice detailed article.
So sad. The fall of NXIVM is really touching and pathetic. Such a controversial multi level marketing company. I am as surprised as you are. Why allow such a company to operate for 10years before bringing them down and revealing the skeletons in their cupboard? Well, good enough, their dirty secrets got exposed.
Hello there, thanks a lot for sharing this wonderful piece of information here. This is my first time hearing of NXIVM and Keith Raniere and it really saddens me to hear that there are platforms like this out there manipulating and exploiting people and I’m glad to hear that it has been rightfully shut down
This is a great article, though I was blank about it, through your writing of this article you have made it clear and more understandable how NXIVM went down after it was discovered about its dirty works, this information contained here will go a long way in helping people realize how dangerous it is to commit yourself into someone’s business without doing proper research about it especially if it’s online.
Wow, you’ve sturred my memory. I vaguely remember the 20-20 piece on this company. MLM’s and Pyramid schemes are very effective in generating income, especially for founders. If you are able to generate sufficient hype there is money to be made. Unfortunately, easy money attracts those with less than perfect intentions. This is clearly the case here.