Well, at long last, the epic battle of NXIVM versus Susan Dones and Kim Woolhouse is over (For those who missed my earlier posts on this case, go HERE and HERE and HERE). And the result? A complete and utter ass-kicking verdict in favor of the two women!
The battle began on October 18, 2010 when NXIVM filed last-minute “adversary proceedings” in the just-about-to-be-discharged bankruptcy cases of Dones and Woolhouse. (Since Dones and Woolhouse had originally filed for bankruptcy on July 9, 2010, they would have been eligible for discharge only a day or so after NXIVM filed). Per those filings, NXIVM asserted various financial claims against the women; sought to have them return certain NXIVM-related property; asked the court to prevent them from saying anything publicly about NXIVM; and asked that their bankruptcies be denied.
Throughout the next 14 months, NXIVM used four major law firms and at least 7 attorneys in its efforts against Dones and Woolhouse. NXIVM’s Hall-of-Shame list of lawyers included the following: Stephen R. Coffey, Pamela A. Nichols and Richard H. Weiskopf/O’Connell & Aronowitz PC (Albany, NY); Robert D. Crockett/Latham & Watkins LLP (Los Angeles, CA); Paul D. Swanson and Tiffany H. Scott/Lane Powell PC (Seattle, WA); and Terrence J. Donahue/Eisenhower & Carlson PLLC (Tacoma, WA). The two women represented themselves.
And just like every other NXIVM lawsuit, this one had lots of twists and turns along the way. Some of the more notable ones are:
1. A change of law firms by NXIVM, which is the one of the things they do in almost every case and which usually guarantees at least a couple of months delay in the proceedings;
2. Two amended complaints, each of which included new allegations that required new responses and allowed for new motions to be filed, etc.;
3. Numerous discovery requests that were repetitious and that asked for documents and information that were totally unrelated to the case (NXIVM is incessant in its attempt to obtain phone records, text messages, emails, etc.); and
4. Numerous depositions of parties that have absolutely nothing to do with the bankruptcy case but that allowed NXIVM to go on “fishing expeditions” in the hope that it might find some reasons to sue other people.
When all was said and done, NXIVM claimed that Dones and Woolhouse had disseminated NXIVM’s confidential information; refused to return NXIVM’s training materials; damaged NXIVM’s business operations; included false oaths in their bankruptcy filings; concealed assets in their bankruptcy filings; and engaged in a civil conspiracy to harm NXIVM. In addition to seeking financial damages, interest, costs, and (of course!) attorneys fees for all of those alleged “bad deeds,” NXIVM also asked the court to issue a permanent injunction that would bar the women from distributing the infamous “I’ve had people killed for my beliefs” videotape (HERE) and require them to return all of their NXIVM materials.
At the outset, it appeared that Dones and Woolhouse would simply be the latest victims of NXIVM’s “terrorism by litigation” strategy. But a funny thing happened on the way to the trial…Dones and Woolhouse decided to fight back.
First, came their challenge to NXIVM’s way of issuing subpoenas to third party witnesses. That resulted in a rebuke from the judge about NXIVM’s “confusing and potentially abusive” tactics and a requirement that all such future subpoenas be approved, on a case-by-case basis, by him. Wait a minute, Batman…Now we can’t just depose anyone we want and ask them whatever we want?
Next, Dones and Woolhouse started issuing their own requests for documents and records, especially ones concerning NXIVM’s claims regarding disruption of business operations and lost revenues. WHOOOPS, Batman, we have a big problem here…The judge has ordered us to turn over our internal accounting records to Dones and Woolhouse. That would be like taking off our masks.
So, just five weeks before the trial was to begin, NXIVM dropped all of its claims for “monetary damages” against the two women. It also dropped its “civil conspiracy” claim because that also would have allowed Dones and Woolhouse to get access to information and records that NXIVM does not want to make public.
As a result of NXIVM’s sudden change of heart, the 2-day trial that took place back in September was limited to NXIVM’s request that Dones and Woolhouse be forced to return all of their NXIVM materials and that they be enjoined from distributing those materials to anyone else. But, once again, a funny thing happened on the road to justice…This time, the judge hearing the case, Brian D. Lynch, actually saw through all of NXIVM’s bullshit and nailed its ass to the wall. (Side comment: It’s too bad that our local bankruptcy court judge, Robert E. Littlefield, Jr. a/k/a Bobby Littleballs, has been unable or unwilling to do the same thing).
According to my sources in the legal community, most decisions in bankruptcy cases are pretty brief and very boring. Well, unfortunately for NXIVM, Judge Lynch’s decision in the Dones/Woolhouse case is neither of those things (HERE).
Written and structured like it anticipated an appeal, Judge Lynch’s decision includes a number of findings that will likely cause NXIVM some real problems in the future. Those include the following:
1. The infamous “Confidentiality Agreement”, which everyone who ever takes a NXIVM course is required to sign, only applies to “information provided to students by NXIVM instructors and contractors during formal classes and Instructions.” The court then went on to find that the “Confidentiality Agreement” does not cover “the entire scope of information about NXIVM, the business or its agents and affiliates.” Holy shit, Batman, that means that people can actually start telling the truth to one another about us! Our leaders are not going to be happy about this.
2. The videotape of the April 2009 meetings belongs to Dones. Because, however, she agreed at the outset not to distribute it, she is barred from doing so. Yikes, Batman, Raniere is really going to be pissed about this one.
3. Dones and Woolhouse (and, by extension, everyone else who was at the April 2009 meeting) did not try to extort money from NXIVM. Damn it, Batman, you know that this was Raniere’s #1 priority in this case.
4. Dones and Woolhouse did not do anything to injure NXIVM.
Holy fuck, Batman, we didn’t manage to convince the judge about this either?
5. Dones and Woolhouse did not use NXIVM’s training materials for their own purposes and/or in violation of the “Confidentiality agreement.” Another claim bites the dust…
6. The “Confidentiality Agreement” does not apply to Dones’ and Woolhouse’s emails. God damn, Batman, then why the hell did we bother paying all that money for copies of Joe Ohara’s emails?
7. Dones and Woolhouse did not hide any assets in their bankruptcy filings. OK…We all knew that we just made this one up.
8. Dones and Woolhouse did not refuse to return NXIVM’s materials – and it was, in fact, NXIVM that prevented this from happening. “The Court is left with the impression that NXIVM was less interested in getting the materials back than is using the turnover of the materials to gain an advantage regarding the other claims.” Fuck, Batman, I think this judge can see right through our disguises!
9. NXIVM is not entitled to reimbursement for its attorneys’ fees or costs. Better tell Sara and Clare to get out the old checkbooks, Batman.
10. Saving his best for last, Judge Lynch concludes his opinion with the following: “NXIVM’s pursuit of Woolhouse is another matter entirely and sheds light on its true motivations. Apart from participating in the April 2009 meeting with Raniere and joining in the subsequent email with the other participants, there is absolutely no evidence that she did anything to harm NXIVM. Her “sin” was to attempt to walk away after discovering that NXIVM was not what she thought or hoped. In return, she was labeled a “suppressive,” a term that NXIVM applies to former associates who leave the company or whom NXIVM perceives to be its enemies, and subjected to protracted litigation from two large law firms and a phalanx of attorneys. Despite multiple depositions and extensive discovery, they were never able to prove that Woolhouse did anything wrong. NXIVM’s treatment of Woolhouse in this adversary proceeding was, in a word, deplorable.” Uh-oh, Batman, I think this is where Raniere decides that we tanked this case on purpose and refuses to pay our outstanding fees.
Although elated by the decision, Dones and Woolhouse had to wait and see whether NXIVM would file an appeal. (This is, after all, the same bunch of idiots that appealed then denial of a Preliminary Injunction all the way to the U.S. Supreme Court). But, thankfully for them, the time to file any such appeal has come and gone.
After Judge Lynch issued his decision, the only issue left to be decided was how Dones and Woolhouse would remove NXIVM materials from their computer. NXIVM suggested that it would supply an IT specialist to do that – which would, of course, have given it access to everything on the computer in question. But the judge sided with Dones/Woolhouse and went with their suggestion that the hard-drive in the computer just be destroyed.
One of the interesting things that happened at the final hearing is that the judge granted NXIVM’s motion that he remove from the official file several of the documents that were attached to some of Dones’ and Woolhouse final filings. But, thanks to my trusty PACER account, I was able to pull down copies of those documents before they vanished.
So, a wonderful end-of-year victory for Dones and Woolhouse and a lump of coal for Raniere and his “phalanx of attorneys.” Let’s hope that this is just the beginning of the end for the NXIVM cult and all the harm and pain that it’s caused.
30 comments:
Judge Littlefield should be investigated by the FBI. That fucker is definitely sucking on the NXIVM tit.
Holy shit, John, you saved the best for last. Unbelievable that 2 pro se women kicked the shit out of Crockett and Coffey and all those other scummy lawyer leeches that NXIVM hired to take them down.
HaHaHaHaHaHaHaHaHaHaHaHaHaHHaHaHaHaHaHaHaHaHaHa
HaHaHaHaHaHaHaHaHaHHaHaHaHaHaHaHa!
YO, SUSAN AND KIM, YOU ROCK!
Hey, Sara, your boy Raniere got his ass kicked worse than Mommar. I wonder how the Libyans are gonna look at you now.
Some times I have fun adventures. This is a story of one of them.
I have a friend (who I will call Valerie for the sake of clarity) who, although we get along quite well, I find to be a bit credulous. I’m sure if you asked her, she’d tell you that, although we get along well, she finds me simplistic and reductive and closed off to possibilities beyond what can be seen and heard. This is an unfair characterization, but rooted in a larger ignorance of skepticism that we are slowly resolving through good-natured chats whenever we get together.
Because I’m, well… me, Valerie calls from time to time to ask my opinion on various matters. Not because she thinks I’m particularly brilliant, but because I am in real life more or less how I am online – full of opinions. She also knows that, as a skeptic, I am quite adept at poking holes in things. It was in this spirit that she invited me to attend an open house at the life-coaching workshop she had been attending for a while. She thought that maybe I would learn something new, or that (more likely), I would sit like a curmudgeon and get into a fight with the speaker. I promised her that I would be open minded (which was a bit of a cheat, because she and I have very different definitions for that term).
And so it was that I found myself attending a workshop for the Executive Success Program, led by none other than director and film-maker Mark Vicente. Yes… that Mark Vicente.
Now I very rarely walk into a meeting like that without knowing anything about the speaker or the product being flogged, because part of my definition of being open minded is understanding what critics have said. Let’s just say that I almost changed my mind about going:
But [inventor of the Executive Success Program Mr. David] Raniere, known as “Vanguard” to his faithful followers, apparently attempts to deflect any meaningful personal responsibility by blaming his failures on former business associates, the “negative thoughts” of others and “outside forces.”
Any time that the only information about your product that isn’t published by you comes from Rick Ross’ Cult Watch website, you know you’ve got problems. I’m going to leave the whole “Vanguard” nickname alone for now (but I suggest you click through, because the guy sounds like a real winner), but let’s just say that I was not expecting big things from mister Vicente. But I had promised Valerie I would attend, and so attend I did. While there, I jotted down a few thoughts.
Love Bombing
I interact with people a lot. I play regular shows with the band, I am invited to parties, I go to bars, I attend many types of social functions. I have a fairly large sample size to work with when it comes to Vancouverites’ behaviour when meeting others for the first time. I walked into the room (after taking off my shoes… weird, but whatever) and had been there for no more than 10 seconds before I was approached with big, friendly inviting smiles and sincere-sounding inquiries as to how I was doing by 4 or 5 people. Sure, friendliness is nice, but the kind of over-familiarity and faux sincerity on display was well above and beyond normal friendliness.
Of course this is a technique that has a name – it’s called “love bombing”, and is a technique used by cults to make the naive newcomer feel that they have found a group where they belong. Who wouldn’t want to be surrounded by happy, positive, and (let’s face it) good-looking people who all treat you like an old friend from the moment you walk in the door? It’s probably the nicest form of brainwashing you could imagine, unless you have Asperger’s in which case it’s probably one of the circles of Dante’s hell.
The Presentation
After being forced to pretend that I wasn’t creeped out by the effusive welcome from my new best friends in the whole world, we were invited to sit in the conference room. After a brief introduction by the local ESP group leader, Mark took the stage. I will give this to him – he’s a gifted speaker, who can sustain a narrative and walk you through a thought process in such a way as to make it seem as though all the ideas he’s sharing came from within your own head, and he was just helping to coax them out.
I’ve seen sales pitches before, and so the slick delivery didn’t bother me. What did bother me was his attempt to completely shut down the audience’s critical thinking abilities. The first instruction to the audience was “be open”, which was essentially begging us to pay no attention to the man behind the curtain. He listed a handful of “blocking strategies” which represented, basically, any strategy that involves critical thought. This included a straw man swipe as skeptics as “cynics” who refuse to accept any new ideas. When I was the only one to raise my hand when he asked if there was anyone who didn’t see themselves described on the list, he chuckled knowingly and said “you’re what we call ‘the defiant’” and added me to the list. I’m anything but defiant – I just don’t accept everything that a salesman tells me.
The Question
In the first half of the presentation, Mr. Vicente talked a lot about the things we do to interfere with our own success – that either through fear of succeeding or through old bad habits, we set ourselves up for self-sabotage. He kept bringing the discussion back to a central question: “what would you give up in order to stop blocking yourself?” What would you be willing to sacrifice if it meant that you could achieve your goals?
He then invited all of the “coaches” from the ESP program to introduce themselves to the group. The coaches themselves were the same over-friendly people from my ill-fated entrance. The presentations were all variations on a theme: “I knew what I wanted, but I didn’t know how to get it. Then I started doing the program. Now I am successful.” There is a slight problem, and maybe you can find it. Maybe if I give you a clue: all of them were in their mid-to-late 20s.
It has been my experience that, when you start your 20s, life isn’t that great. If you’re anything like me, you have lots of ambition but few skills and little experience to speak of. You try many things, and most of them fail. But as a handful of years pass, you become more competent, and things start to work out. That happens in the absence of taking a self-help program; it’s just how it works for ambitious, highly-educated, personable people. I thought of a great slogan for them: Executive Success Programs – the antidote to your first world problems!
We were exhorted to reconvene in small groups with whichever coach “resonated the most with you”, so I split off and joined the group discussion; another fun adventure that I will share with you in this afternoon’s post.
Sounds like they didn't have a case against either women to begin with which can be summed up in one word HARASSMENT
Just an FYI, I heard that it wasn't NXIVM who dropped their claims but it was the Judge at a hearing after NXIVM dropped their financial claims who threw out half the claims.
What Raniere did to these two women was pure EVIL. I hope he rots in HELL after his long time in jail... What a MOTHER FUCKER he is
In which our hero continues his narration of attending a workshop for a self-help program. Read Part 1.
What if everything you ever wanted… came in a ROCKET CAN? Okay, so this presentation wasn’t quite as entertaining as Powerthirst, but it amused me for the span of an evening. When we left off, the audience had just broken off into smaller groups to chat with the coaches.
What would you give?
The group discussion came back to the same central question that Mr. Vicente had kept posing, broken down into three (extremely leading) subquestions: 1) what would you like to achieve, 2) what would that accomplish for you, and 3) how much would you give up to achieve it? I call these leading questions because they prime you to accept that there is something on offer than can accomplish the transition from 1 to 2, in exchange for 3.
Those who know me in real life know that I’ve never shut up for longer than 30 seconds about anything. It’s an annoying habit, I know. But I managed, somehow, to summon the strength to keep my yapper shut through the entire group exercise. People shared wishes to be more confident, less afraid of success (priming is useful), more willing to try new things… the kind of nebulous and diaphanous ‘goals’ that can only be expressed in vague terms.
The problem with the question of “what would you give up” is that it is, to put it bluntly, stupid. There is a scene in an episode of the Simpsons where Mr. Burns, expressing regret for the way he’d lived his life, says “but I’d give it all up for just a little bit more.” That’s the question being asked – how much would you pay to have more that what you have? It’s a simplistic mathematical question that puts your head in a cloud of fulfilling your wildest dreams.
So I’d been keeping my mouth shut, until the coach turned to me and asked me the three questions. Not wanting to be rude (and feeling more than a little snarky), I answered honestly: my life is pretty good. I am content with the direction my life is currently taking, so I’m good without life coaching. Mark, watching from the door, was visibly unhappy with my answer.
The Product
So after the spiel with the groups, we were invited back in to talk about the miraculous panacea that is Rational Inquiry, the name for the technique ‘developed’ by Mr. Raniere. Mr. Vicente related a story about panic attacks that he used to have while stuck in traffic, but which were cured in a 45-minute consultation. A pretty impressive claim, but one that raises a disturbing question: why is he selling it to 20somethings with career problems? If you can cure panic attacks in 45 minutes, why aren’t you treating war veterans with PTSD? Maybe they aren’t quite as credulous…
“Rational Inquiry”, as it was presented, is a mish-mash of psychological concepts, borrowing heavily from Ajzen’s Theory of Planned Behaviour and Cognitive Behavioural Theory (CBT). Basically the idea is to identify precognitive triggers for unwanted behaviour (sometimes called ‘antecedents’) and to address and remove them. He used the shopworn example of the elephant tied to the flimsy rope as an example of the kinds of antecedents that would stop someone from pursuing success.
In order to give credit where it’s due, I am certainly not going to pooh-pooh Rational Inquiry out-of-hand. I don’t know nearly enough about the specifics of the method to say whether or not it’s valid. What I will say is that, unlike CBT or the Theory of Planned Behaviour, Rational Inquiry has undergone absolutely no clinical testing, has not been subjected to peer review, and is protected behind a wall of copyright. That cluster of facts suggests to me that, like other types of pseudoscience, Rational Inquiry is just a smokescreen that cannot deliver on its wild claims but hides behind anecdote and litigation.
The Aftermath
After the presentation was done, I chatted with Valerie and her friend who came along. I outlined my exact reasons, as described above, for my objections. The love-bombing; the stupid, leading questions; the pseudoscience and lack of testing; the suppression of critical thought – all of these things made me increasingly suspicious of the integrity of the program. A program, incidentally, which is draining Valerie’s bank account to the tune of $42/week (much more, incidentally, than I spend on electricity, internet, and transportation combined – what would you give up to completely waste your time?).
While I was talking (at long last – I had been keeping my opinions to myself for 2 straight hours), one of the coaches came over and began listening intently. I was confused by this, because I was basically pointing out all the ways in which he was propagating a scam. He didn’t seem to mind, so I kept discussing. I am reasonably certain that I didn’t change his mind, and Valerie was already a lost cause. However, I did manage to inoculate her friend, who was expressing skepticism beforehand but who couldn’t quite put her finger on why.
Concluding thoughts
Some people (Valerie included), think that to be a skeptic is to close yourself off from the more mysterious aspects of the world; that to be skeptical is to be cynical and dour about unfamiliar possibilities. I don’t blame her for this misconception, and to her credit it does not interfere with our friendship. What this evening demonstrated to me is that familiarity with the tools of skepticism does indeed close you off to things – fraud and pseudoscience. I used the word ‘inoculated’ above intentionally – a brain that is trained in the art of skeptical appraisal is a brain that is much more difficult to fool with fast talk.
Valerie is a fantastic person, and she told me in our subsequent conversation about the workshop that she feels like she is getting something out of the program. It was not my place to make her decision for her, and after giving her my opinion, I shut up. I am not sure whether or not she is truly getting something out of ESP, but after watching audience members signing forms with their credit card information in the lobby on the way out, I know for certain that skepticism, that night, saved me a bunch of money.
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http://ourredlands.com/tedxsanmigueldeallende-mark-vicente-brave-love
Mr. Vicente is Institutionalized cult member.
Before NXIVM he was a high ranking member of Ramtha's School of Enlightenment - here - http://en.wikipedia.org/wiki/Ramtha%27s_School_of_Enlightenment
He seemed like a nut case then and seems like a nut case now. Some day maybe Vicente will stop following others and seek inside who "he" really is - until that happens he's happy selling other people's bull shit
Someone must step in and stop this nxivm gang from ruining peoples lives.
OMG...The Mormon lawyer got taken down by two lesbian women. ROFLMAO!
Great post, John. Happy New Year Guys!!!
These women had no choice but to uphold the principles of truth and justice.
They took on the "school yard bully" knowing they could get the shit beat out of them.
Why, so hopefully others could be safe.
Through such things, adversity provids the resistance necessary to develop the strength to overcome such great a powerful obstacle.
Always remember you stood up and faced the Evil ones.
Your strength consisted of self-confidence, perseverance, and very importantly the self-knowledge that you will stand up for truth and justice.
NXIVM once again was using the legal system to harass and silence. In the end they lost and it has and will cost them in many ways for being so foolish.
Let this adversity be your guide to understanding where you mis-stepped as this is a part of life.
Seek out which qualities you can cultivate from this experience that will assist you in your souls journey - this is the reason you are here.
No one rejoices in the disappointments and heartaches of being defrauded nor in so many different ways. This is what Raniere, Salzman and others did. Than they took you to court to cover up their fraud. The good news - it didn't work and will back fire on them.
Those who are success-conscious, will turn such a situation into an opportunity to improve oneself. In the end - Good overcomes Evil
Let us all pay heed to the epic words of Nelson when we remember NXIVM's Goliath lawyer's loss to two pro se Davids:
http://www.youtube.com/watch?v=aIrhVo1WA78
And to those who are thinking about purchasing NXIVM's BS of placebo "joy", let us never forget the immortal words of Wesley of "The Princess Bride":
http://www.youtube.com/watch?v=urGVKx3H_Rk
Don't feel too sorry for the lawyers. They get paid win or lose. It's all billable hours to them. They are laughing all the way to the bank. The only losers are the NXIVM crowd, the idiot sisters and unfortunately, the two women who won in court. They won, but they will never recover the lost time and stress the invested in this noble battle.
Note to 6:11 PM:
Bullshit...Kim and Susan can rejoice for the rest of their lives knowing that they slew the evil dragon that is NXIVM. As we head into 2012, my ongoing concern is for poor Gaelen, the child who is being raised by a psychopath surrounded by a concubine of idiots. Good Lord, please save this child.
Hey...I found someone who NXIVM's inner core of "critical thinkers" may be able to win in a debate, or their band of lawyers might be able to win a pro se case, against:
http://www.youtube.com/watch?v=lj3iNxZ8Dww
The comments about the Vancouver meeting need to be posted somewhere so they are easy to find in a Google search so everyone seeking information about this groups gets another prospective.
The piece was well written, clear and gives seekers of information before signing the dotted line to join NXIVM a good picture of how they set up their information meetings to hook people emotionally to join the cult
This information is valuable and hopefully will not buried within the pages of this blog making it hard to find in a Google search. It's good for people to really understand how cults work - http://www.howcultswork.com/
Note to Anonymous 11:39 AM - GREAT IDEA.
Why the fuck hasn't any government agency put an end to all of this NXIVM bullshit. Has NXIVM bought off everyone?
I saw one of the infamous NXIVM coaches yesterday at Parkway Music in Clifton Park -- Siobahn Hotaling. She had on this stupid headset for her cell phone that made her look like some sort of space alien. She was looking at guitars. I hope whe was also inquiring about singing lessons. The clips of her on Youtube are excrutiatingly painful to listen to. She isn't really all that goofy looking for a rug muncher. I think she was the one what was giving John the evil eye at Cafe Mocha.
Thank you Vancouver Observer for not caving in as so many do. They hate being questioned but talk out of both sides of their mouth, claiming the program is all about "Inquiry".
Good hypothesis of RAT INQ- "a pseudoscience... smokescreen that cannot deliver on its wild claims but hides behind anecdote and litigation"
Oh so cleverly stupid on many levels (from having been indoctrinated at one time). Hard to believe the incredible claims of high IQ's. LOL!
If you carefully study your own life and those of achievers whom you admire, it is an absolute certainty you will discover that your greatest opportunities to grow and learn often occurred during times of failure.
Raniere doesn't believe in failure nor does he exam his own life - that would be too hard. If he did he would "own" his failure instead of blaming others and he would learn from them and change his ways. Instead he just gets worse.
He uses the cat box method - he covers up his failures. Problem is you need to clean the cat box out regularly. Not VanSmell - he need to "think" so his "others", just keeps adding litter to the box in an attempt to cover up his shit.
Rumor is his closes "chosen ones" whom he co-habitats with, all live in a big "pig pen liter box" that smells of his "cat like" urine and shit.
Might be time to clean your litter box out and exam your life Oh Smelly One
To those who cover up his shit - the time has come to admit to yourselves and the authorities what turds are buried in the liter box.
Some shit is coming to the surface anyway.
Happy New Year Vanturd - here's hoping you and your closes followers get arrested in 2012
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