An heiress to the Seagram Co fortune was released on a US$100 million bond following her arrest in a widening probe of a self-help organization that prosecutors say was a secretive cult that branded its victims and forced them to participate in sexual acts.
Clare Bronfman, the daughter of former Seagram chairman Edgar Bronfman, was one of four women on Tuesday charged in connection with the investigation of Nxivm, an Albany, New York-based multilevel marketing company founded by Keith Raniere.
The new charges add a bizarre twist to a sensational case that generated headlines with the April arrest of Allison Mack, 35, an actress who allegedly recruited slaves for Raniere.
A month earlier, Raniere, 57, was apprehended in Mexico and accused of sex trafficking and forced labor. He is being held without bail.
Both deny wrongdoing.
Dressed in a light, short-sleeved shirt, jeans and flip flops, Clare Bronfman, 39, pleaded not guilty to a charge of identity theft. She is not accused of sex trafficking, or forced labor crimes, and faces a maximum sentence of five years in prison.
Prosecutors said she was likely to flee though and asked for a sizable bond to ensure her appearance for trial. She has a private jet and a stake in a private island in Fiji, prosecutors said in a court filing.
Clare Bronfman’s lawyer, Susan Necheles, argued for a lower bail, saying her client surrendered and had been in constant contact with prosecutors.
She had been in Mexico with Raniere when he was arrested and flew back immediately, Necheles said.
“She is a very wealthy woman,” Necheles told the judge. “But even wealthy people should get bail.”
Clare Bronfman has more than US$98 million under her direct control and another US$100 million in two trusts, her lawyer said.
However, US District Judge Nicholas Garaufis in Brooklyn balked at the idea of releasing her on a US$25 million bond.
He said she could use her money “to get on a plane in Teterboro airport and fly off somewhere.”
In addition to the bond, Garaufis put Clare Bronfman under house arrest and ordered her to wear a monitor on her ankle. She was due back in court yesterday for a status conference, along with her codefendants.
Clare Bronfman is one of seven children. Her father captained Seagram’s expansion during his years leading the company.
She, Kathy Russell, 60, Lauren Salzman, 42, and Nancy Salzman, 64, were allegedly members of Raniere’s inner circle that recruited and groomed sexual partners for him.
US Magistrate Judge Daniel Stewart in Albany agreed to release Russell on a US$25,000 bond, and Lauren and Nancy Salzman each on a US$5 million bond.
Russell and Lauren Salzman have not met all the conditions of their bonds, the US Attorney’s office in Brooklyn said.
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