While some NXIVM -watchers have read Susan Dones five year old deposition (11/23/2010), the mention of it by a reader prompted me to take a good look at it.
It bears study for those considering following in her footsteps.
Dones was the owner of the Tacoma NXIVM center; a field trainer, proctor, salesperson and head trainer for NXIVM.
As such she had a marvelous insider’s view of the organization.
The next several posts are excerpts from her deposition.
She is being questioned by NXIVM attorney Robert Crockett.
Dones was trying to file bankruptcy and was being opposed by NXIVM.
She represented herself.
Part # 1 is on Tax Evasion
(Crockett) Q: Do you believe that NXIVM has a twisted view of ethics?
(Dones) A: I do.
Q: And how so?
A: Because they teach ethics, but in my opinion, a lot of things that they teach are not moral. … they’ll teach one thing, and then their behavior shows a completely different thing.
Q: … What do they teach that’s twisted?
A: Well, one of the things that they talk about is …taxes…
Q: Have you ever seen any written course material from NXIVM saying, “Don’t pay taxes”?
A: …. on one of the videos… Nancy Salzman talks about … not paying taxes….
Q: ….Have you ever seen any written materials handed out to students advocating nonpayment of taxes?
A: No, no written materials….. In the case of the Washington State Department of Revenue…. (Nancy Salzman) asked me if I paid my B&O taxes,* and I said, “Of course I pay my B&O taxes**. … Why are you even asking?” She said, “We’re having a problem with the state department of revenue, and I wanted to make sure that you paid your B&O taxes before we dealt with this because we didn’t want to get you in trouble.” And I said, “Well, what’s going on?” She said, “I can’t tell you at this particular time.” And then when we were through with that part of the conversation, she said, “Why do you pay your taxes?” like it was some bad thing to do. Barbara Jeske, [now deceased] the highest ranking member of NXIVM, brags about the fact that she’s off the radar with the IRS and has not paid taxes for years”….
Q: What other things did you observe that caused you to think that the behavior of the NXIVM officers deviated from what they actually taught?
A: I believe that NXIVM has collected cash that they don’t claim….. They have a cafe. … an unlicensed cafe at their training facility…. They collect cash… I’ve been told by several people that they don’t claim their cash….
Q: Who told you that?
A: One is Nancy Salzman. One is Barbara Bouchey.
Q: Nancy Salzman actually told you they don’t declare -they don’t pay taxes on the cash they collect from their little cafe?
A: Right. She also told me that they bring cash across the border from Mexico that they don’t claim.
Q: Nancy Salzman told you that?
A: Yes…..
Q: ….(Do) you believe that NXIVM has adopted (Barbara Jeske’s) views of government tax (evasion)?
A: No. I believe that Barbara Jeske has adopted Keith’s
Q: Has she told you that this is what Keith believes
A: Yes. –
Q: We don’t pay taxes?
A: Yes.
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