According to federal court papers obtained by Radar, a New Jersey judge ruled in favor of an investigative firm called Interfor and against NXIVM. The court ruling was long-anticipated, as the legal battle first began back in 2006.
“It is on this 26th day of August, 2019, ordered that judgement is entered in favor of crossclaimant Interfor, Inc. in the amount of $1,369,157.51 against crossclaim defendant NXIVM Corporation on Interfor’s crossclaim for contractual indemnification,” the United States District Court of New Jersey papers claimed.
The highly-anticipated ruling was delivered on NXIVM leader Keith Raniere’s 59th birthday on Aug. 26. As Radar readers know, Mack’s former cult leader was found guilty of seven felonies earlier this summer including sex trafficking and child exploitation.
Mack herself faces up to 30 years in prison for playing a high-level role in the corrupt organization. Her sentencing date originally scheduled for September 11 was postponed and has yet to be rescheduled.
According to the ruling, New Jersey judge Katharine S. Hayden claimed that NXIVM has until October 15, 2019 to file an opposition. According to local outlets in Albany, New York – close to the former NXIVM headquarters – Interfor is a New York-based company that NXIVM recruited back in 2004 to investigate cult expert Rick Ross.
Ross was the leader of the Cult Education Institute. NXIVM originally sued Ross in the early 2000s.
According to online reports, NXIVM is being ordered to pay up because it originally agreed to a “contractual indemnity clause” requiring the organization to take financial responsibility if Interfor were to be involved in any “claim, lawsuit, obligation, action, cause of action or cost or expense.”
At first, NXIVM assumed responsibility and paid over $160,000 as part of the agreement, The Albany Times Union reported. However, in 2007, the now-exposed cult refused to pay any additional amounts and claimed that Interfor performed work beyond what the parties intended on.
Interfor ended up filing a cross-claim against NXIVM and then settled with Ross.
Raniere’s sentencing date has yet to be finalized. However, the disgraced cult leader faces life in prison for his horrific treatment and abuse of women.