Seagram’s Sisters Lawsuit Makes Start-up Funding Look Easy

March 26th, 2010. By AbiK

pssst…looking for some start-up funding? I may have your angel. The Seagram’s sisters—aka, Clare and Sara Bronfman. Yes, the daughters of mega mogul Edgar Bronfman, Sr. They’ve already plowed millions (we’re talking close to $100M) into an investment scheme of self-made self-help wannabe whiz, Keith Raniere—and lost them. Where was that psychic they were talking to? So maybe they’ll be looking for a new opp—esp. now that word on the street is that daddy Bronfman is a bit pissed.

Clare and Sara apparently got a bit “taken in” by Raniere and his NXIVM group-awareness seminar company. So much so that their daddy refers to it as a “cult”. Here’s what Clare Bronfman has to say about Raniere on her—rather low-budget-looking considering she could afford a web guy—website:

Keith Raniere – Keith is my teacher and my best friend. My life is so profoundly different from when I first met him words can’t describe my gratitude. The depth of his caring for the individual people, with whom he works, as well as humanity collectively, is remarkable to me. His dedication to helping people experience more joy in their lives through self discovery and understanding has been an incredible gift to so many of us. Through his ongoing commitment to live an ethical existence, dedicated to doing what is right for all of humanity, he continues to inspire me.

So what’s NXIVM? —if helps if you can first pronounce it, which the NY Post kindly shares as NEX-EEUM. NXIVM was founded by Nancy Salzman who seems to have a hefty CV though you’d be hard-pressed to actually find her credentials—i.e., the ones that include abbreviations like “B.A.”, “M.S.”, “PhD”, etc…and she is not to be confused with similiar-sounding-name motivational speaker, Nancy Saltzman, who does actually list those cluttery initials (and some awards and honors) on her site. But I digress.

Somewhere along the line Salzman hooked up with Raniere, who created the Rational Inquiryâ„¢ model “which allows you to re-examine and re-incorporate perceptions that may be the foundation of self-imposed limitations”. Right.

Lucky for us, the NXIVM homepage is “What is NXIVM?” Here’s an excerpt:

NXIVM is the turning point – a remarkable development in scientific and psychodynamic understanding, education, and technology that can facilitate this transition so the pattern of humanity’s rises and falls can actually be broken and transformed.

This is big sh-t here—we’re (or they’re) talking about NXIVM as a “place where humanity can rise to its noble possibility.” NOBLE! 

I suppose the Seagram’s sisters weren’t feeling noble enough with their trust funds so devotees of NXIVM they became…but then came Raniere’s also-self-made investment scheme—he was apparently trading commodities based on a mathematical plan he had concocted.

Long story short, it’s looking like the financial acumen gene fell a little further from the tree with this generation of Bronfman’s. Per the Post, money’s basically gone and a lawsuit’s been filed in L.A. stating that the sisters lost their $65M investment in the commodities scheme along with $26M for a real estate deal. What’s precious about this is that Raniere seemingly claims that somehow Edgar Bronfman is responsible for the loss—ie, according to the Post, Raniere said “there was a “conspiracy” and the “market was rigged” against him because the mogul didn’t want his girls involved with NXIVM.” 

Yeah, I’m sure Edgar Sr. wishes in his wildest fantasies he had that kind of sway over the commodities market.

Regardless, I’ve learned a few things from this when it comes to tapping into heiress trust fund money for your start-up. Here’s what you’ll need:

• A company logo (and any headlines) in a faux calligraphic font—if you’re at a loss, Lucida Calligraphy’s a safe bet—nothing too “real” or fancy or it just won’t telegraph as you’re clicking through your presentation
• PowerPoint slides with a screened background image of anything DaVinci—though his Vitruvian Man would be perfect; failing that, opt for parchment paper
• A business plan sprinkled with words like: Miracles…Internal Force…Untapped Potential…Emotional Strength…and Non-existent Barriers

Detecting a theme here? Well you should. It’s the “I’ve done some soul-searching and now hold the key to your complete fulfillment and the realization of your deepest wants and desires” business plan. And it covers a number of successful businesses—some more “legit” than others—including the Tony Robbins empire, Marianne Williamson, The Secret, just about every televangelist out there and—clearly of great import to the Seagram’s sisters—NXIVM.

And lest you be thinking that the Seagram’s sisters–or I should say their father—are the only ones to have some issues with Raniere, the Post article states he’s “a Brooklyn-born smooth talker who has been investigated for fraud in several states and is described in legal documents as a “compulsive gambler.” 

So let me know if you profit from my tips for tapping into the untapped potential of your under-resourced business plan. Hey, I may have an investment or two for you…  

Tags: Bronfman, Edgar Bronfman Sr, Keith Raniere, Nancy Salzman, NXIVM, Seagram's

This was posted on Friday, March 26th, 2010 at 11:46 am and is filed under Consumer Fraud, Emerging Issues, Financial, lawsuits, Securities, Totally Tortelicious . Feel free to respond, or trackback. Read our comments policy.