In this 2003 cover story, Forbes first raised questions about Keith Raniere—who now stands trial for charges that include sex-trafficking and forced labor involving his alleged cult, Nxivm
eginning in 1998, Keith Raniere attracted thousands of acolytes to his self-help group’s headquarters near Albany, New York, with the promise of life-transforming classes. Raniere didn’t just promise to unlock clients’ greater potential; he claimed that his methods could abate symptoms of Tourette’s syndrome and even help kids speak up to 13 languages.
Raniere says there’s nothing in his operation that makes it a cult, and indeed, many enrollees see Executive Success as a good coaching program and nothing more. Enron’s Stephen Cooper puts himself in this category. Yet Raniere is an unlikely mentor to the wealthy and well-connected. A decade ago he ran an alleged pyramid scheme that collapsed after signing up at least 250,000 customers and bringing in more than $33 million in a year.
Once a day the attendees recite a 12-point mission statement written by Raniere. It is apocalyptic in tone, with the occasional grammatical error—his genius notwithstanding. The world is full of people who try to “destroy each other, steal from each other, down each other or rejoice at another’s demise.” Thus, he writes, “it is essential for the survival of humankind” that the world’s wealth and resources be controlled by “successful, ethical people”—i.e., those trained at Executive Success.
Raniere says by the end of 1993 he had sold $1 billion in goods and services, employed 80 people and had a quarter-million believers paying him $19 a month to hawk his goods. He claims he was worth $50 million. Yet he appeared to carry no money, says Bremner, adding that Raniere seemed to sleep all day, rolled into his office around 10 p.m. and sometimes held meetings at 1 a.m. Business flagged, debt ballooned and customers complained. Regulators in 20 states began to investigate.
Raniere and Salzman don't directly deny the assertions, but they say Natalie may have altered court documents—a charge Natalie says is outrageous. In January a U.S. judge said he found it"disturbing" to hear testimony that Raniere had had police sent to Natalie's mother's house and had made repeated threats to her and her family. Raniere has appealed several times, driving Natalie to the brink of a breakdown."I can't think. I can't work.
Sara Bronfman, Edgar Sr.'s 26-year-old daughter, says she started taking classes at the end of 2002 after her marriage fell apart.
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