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United States of America v. Keith Raniere — Opinion Summary (2d Cir., Dec. 9, 2022)

Factual and Procedural Background

Keith Raniere founded NXIVM, a self-styled executive coaching and self-help organization, and later created a secret society called DOS, structured as a pyramid with Raniere at its head. DOS members (all women except Raniere) were organized into "masters" and subordinate "slaves." Recruits to DOS provided "collateral" (including sexually explicit materials, financial instruments, and letters with damaging allegations) to demonstrate commitment. DOS "slaves" performed "acts of care" and unpaid services for their "masters," and some were assigned to engage in sexual conduct with Raniere. The Government presented evidence that Raniere and his inner circle recruited and groomed sexual partners for Raniere and that women were coerced into sexual acts.

Following a six-week jury trial in the Eastern District of New York before Judge Nicholas G. Garaufis, Raniere was convicted of multiple crimes, including sex trafficking-related counts. The District Court entered judgment on October 30, 2020, sentencing Raniere principally to 120 years' imprisonment and imposing a $250,000 fine. Raniere appealed, principally contesting the meaning of "commercial sex act" in 18 U.S.C. § 1591(e)(3) — specifically whether "anything of value" requires a monetary or financial component or that the sexual exploitation be conducted for profit. The Second Circuit panel (Calabresi, Cabranes, Sullivan; opinion by José A. Cabranes) heard argument and issued this opinion affirming Raniere's sex trafficking convictions.

Legal Issues Presented

  1. Whether the statutory phrase "anything of value" in the definition of "commercial sex act" (18 U.S.C. § 1591(e)(3)) requires a monetary or financial component (i.e., whether a "commercial sex act" must involve an economic/monetary exchange or be conducted for profit).
  2. Whether the District Court erred in the jury instruction defining "commercial sex act" (including the District Court's use of the phrase "because of" and the explicit instruction that a thing "of value" need not involve a monetary exchange).
  3. Whether the evidence presented at trial was sufficient to sustain Raniere's sex trafficking convictions under 18 U.S.C. § 1591 — specifically, (a) whether evidence showed that "anything of value" was given or received in connection with a sex act, (b) whether such things were given or received "on account of" a sexual act (i.e., causally connected), and (c) whether the sex acts were coerced within the statutory definition.

Arguments of the Parties

Appellant's (Raniere's) Arguments

  • Raniere argued that "anything of value" in § 1591(e)(3) must mean economic benefits and therefore requires a monetary or financial component; thus, a "commercial sex act" should be limited to sexual exploitation for profit.
  • Raniere challenged the District Court's jury instruction, contending the court should have instructed using the statutory phrase "on account of" rather than "because of," asserting that "on account of" denotes a quid pro quo while "because of" denotes only a causal connection.
  • Raniere contended the evidence was insufficient to prove (i) that anything of value was given or received in connection with the sexual acts, (ii) that any such thing was given or received "on account of" (i.e., because of) a sexual act, and (iii) that the sexual acts were coerced as defined by the statute.

Appellee's (Government's) Arguments and Trial Presentation

  • The Government argued and presented evidence that "anything of value" encompasses non-monetary, intangible benefits — for example, privileged positions within the DOS hierarchy that conferred benefits such as free labor from "slaves" and special privileges tied to recruiting and maintaining status within the organization.
  • The Government presented testimonial and documentary evidence that DOS "masters" (including Allison Mack) obtained and maintained privileged positions and received benefits that were causally connected to assigning "slaves" to engage in sexual acts with Raniere.
  • The Government presented evidence of coercion, including testimony that recruits provided onerous "collateral" and that victims believed they would suffer significant harm (including reputational and financial harms) if collateral were released, and testimony that victims felt they had no choice in complying with assignments to have sex with Raniere.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Musacchio v. United States, 577 U.S. 237 (2016) Standard for reviewing sufficiency of the evidence after a jury trial: review facts in the light most favorable to the prosecution. Used to frame factual recitation standard and to explain that appellate review credits inferences favorable to the government when assessing sufficiency challenges.
Jackson v. Virginia, 443 U.S. 307 (1979) Standard for sufficiency review: whether any rational trier of fact could have found essential elements beyond a reasonable doubt. Quoted to explain the appellate sufficiency-of-the-evidence inquiry and the deference owed to the jury's verdict.
United States v. Napout, 963 F.3d 163 (2d Cir. 2020) Reiteration that facts are recited in the light most favorable to the government on appeal after a jury trial. Cited as an example of the court's practice in recounting trial evidence favorably to the prosecution.
United States v. Rosemond, 841 F.3d 95 (2d Cir. 2016) Support for viewing evidence in the light most favorable to the government on appeal. Cited to support the standard for recounting trial facts on appeal.
United States v. Bedi, 15 F.4th 222 (2d Cir. 2021) Instruction to begin statutory interpretation with the statutory text and to consider textual and structural clues. Invoked as the starting point for the court's textual analysis of § 1591(e)(3).
Wis. Cent. Ltd. v. United States, 138 S. Ct. 2067 (2018) Authority on statutory interpretation principles (quoted regarding textual analysis). Quoted as part of the court's methodology for construing statutory language.
Leocal v. Ashcroft, 543 U.S. 1 (2004) Principle of construing statutory terms in context and with regard to surrounding terms. Cited in the court's description of its interpretive approach.
Smith v. United States, 508 U.S. 223 (1993) Presumption that undefined statutory phrases are given their ordinary or natural meaning. Used to justify construing "anything of value" according to ordinary meaning where statute does not define it.
Friends of E. Hampton Airport, Inc. v. Town of E. Hampton, 841 F.3d 133 (2d Cir. 2016) If statutory language is unambiguous and scheme coherent, interpretation ends. Cited to explain that the court's textual inquiry ceases if language is clear and consistent with the statute.
Kingdomware Techs., Inc. v. United States, 579 U.S. 162 (2016) Supports the proposition that interpretation ends when statutory language is unambiguous. Quoted as part of the statutory-interpretation framework.
Matal v. Tam, 137 S. Ct. 1744 (2017) Rejects resort to legislative history when statutory language is unambiguous and coherent. Cited to justify focusing on text and not legislative history given an unambiguous reading.
Barnhart v. Sigmon Coal Co., 534 U.S. 438 (2002) Addresses when statutory language is coherent and interpretation ceases. Cited in support of stopping textual inquiry when language is clear.
Ali v. Federal Bureau of Prisons, 552 U.S. 214 (2008) The word "any" has an expansive meaning; used to support broad readings of statutory phrases using "any". Cited to support expansive interpretation of the repeated use of "any" in § 1591(e)(3).
United States v. Gonzales, 520 U.S. 1 (1997) Illustrates that "any" can be expansive and limitlessness in text where no restrictive language exists. Discussed (via Ali) as an example of the Supreme Court's approach to expansive readings of "any."
United States v. Cook, 782 F.3d 983 (8th Cir. 2015) Characterized the phrase "anything of value" in § 1591(e)(3) as "extremely broad"; supports inclusion of intangibles. Cited to support the court's expansive reading of "anything of value" and to note that "value" can be subjective.
United States v. Girard, 601 F.2d 69 (2d Cir. 1979) Holds "thing of value" covers intangibles (examples: amusement, sexual intercourse, promises, testimony). Used to demonstrate that "thing of value" historically includes intangibles such as sexual intercourse and promises.
United States v. Maneri, 353 F.3d 165 (2d Cir. 2003) Found that "thing of value" includes intangibles (opportunity for a sexual encounter) in sentencing-guidelines context. Cited to support that "thing of value" can include opportunities for sexual encounters and other intangibles.
United States v. Nilsen, 967 F.2d 539 (11th Cir. 1992) Discusses "thing of value" in a way that supports non-monetary readings. Invoked to support the proposition that monetary worth is not the sole measure of "value."
United States v. Petrovic, 701 F.3d 849 (8th Cir. 2012) Supports understanding "value" as subjective — focusing on what the recipient subjectively attaches value to. Cited to justify construing "value" as a subjective concept.
United States v. Williams, 705 F.2d 603 (2d Cir. 1983) Concludes "anything of value" in the bribery statute has been given a broad meaning and focuses on the subjective value attached. Used to bolster the view that "anything of value" should be given a broad meaning focused on subjective attachment.
Eckhart v. Fox News Network, LLC, No. 20-CV-5593 (S.D.N.Y. 2021) Civil case concluding "anything of value" can encompass promises to help with career advancement (in § 1595 context). Cited as an example of district-court decisions within the Circuit interpreting "anything of value" to include career-advancement promises.
Ardolf v. Weber, 332 F.R.D. 467 (S.D.N.Y. 2019) Cited as a civil case finding "anything of value" includes promises related to career advancement. Included among civil decisions supporting a broad reading of "anything of value."
Geiss v. Weinstein Co. Holdings LLC, 383 F. Supp. 3d 156 (S.D.N.Y. 2019) Another civil decision treating "anything of value" as encompassing non-monetary promises/benefits. Noted in a footnote as consistent with the court's interpretation.
Canosa v. Ziff, No. 18-CV-4115 (PAE), 2019 WL 498865 (S.D.N.Y. Jan. 28, 2019) Cited as a civil case concluding "anything of value" can include promises to help career advancement. Included as supporting authority from district courts in the Circuit.
Noble v. Weinstein, 335 F. Supp. 3d 504 (S.D.N.Y. 2018) Another civil case within the Circuit reaching similar conclusions about "anything of value." Referenced as part of the body of civil decisions consistent with the court's view.
United States v. Capers, 20 F.4th 105 (2d Cir. 2021) Standards for reviewing preserved challenges to jury instructions and for sufficiency-of-the-evidence review. Used to set out de novo review of preserved jury-instruction challenges and to describe the sufficiency review standard.
United States v. Binday, 804 F.3d 558 (2d Cir. 2015) Authority on when a jury charge fails to inform adequately or misleads the jury about the law. Cited for the standard applied to review the challenged jury instruction.
United States v. Al Kassar, 660 F.3d 108 (2d Cir. 2011) Explains that the court examines the instructions as a whole in reviewing jury-charge claims. Cited to explain the court's approach to assessing the challenged jury instruction.
United States v. Bala, 236 F.3d 87 (2d Cir. 2000) Related authority on evaluating jury instructions as a whole. Quoted by way of the Al Kassar line to frame instruction review.
United States v. Ho, 984 F.3d 191 (2d Cir. 2020) Explains the heavy burden on defendants when raising sufficiency challenges. Cited to underscore the difficult standard for overturning convictions on sufficiency grounds.
United States v. Atilla, 966 F.3d 118 (2d Cir. 2020) Advises that facts must be analyzed in conjunction and that appellate sufficiency review credits jury inferences. Cited to explain how the sufficiency test is applied to the totality of the government's case.
Rousey v. Jacoway, 544 U.S. 320 (2005) Interprets "on account of" to require a causal connection between the modified term and the specified factor. Applied to hold that § 1591(e)(3)'s "on account of" requires a causal connection between the sex act and the giving/receiving of anything of value.
Gross v. FBL Financial Services, Inc., 557 U.S. 167 (2009) Definition guidance: "because of" means "by reason of: on account of." Used to conclude that the District Court's use of "because of" (instead of "on account of") did not mislead the jury because the terms are virtually indistinguishable.

Court's Reasoning and Analysis

The court's analysis proceeded in structured steps anchored in textual statutory interpretation and conventional standards of appellate review:

  1. Starting point — textual analysis: The court began with the statutory text of 18 U.S.C. § 1591 and its definition of "commercial sex act" in § 1591(e)(3) as "any sex act, on account of which anything of value is given to or received by any person." Because "anything of value" is undefined in the statute, the court applied ordinary-meaning and textual-construction principles (citing Smith and other authorities) and considered structural clues, including Congress's repeated use of the word "any."
  2. Meaning of "any" and scope of "anything of value": The court emphasized that "any" is expansive (citing Ali) and that Congress used "any" three times in the definition, supporting an expansive reading. The court relied on prior Second Circuit authority (Girard, Maneri) and other circuits (Cook, Petrovic, Nilsen) to conclude that "thing of value" has historically covered intangibles as well as tangibles and that "value" is properly understood subjectively — focusing on the value the recipient attaches to what is received.
  3. Holding on monetary/financial component: Based on textual indicators and the cited authorities, the court concluded that "anything of value" need not have a monetary or financial component and that § 1591 does not require sexual exploitation to be conducted for profit. Thus, non-monetary benefits (e.g., privileged positions, free labor, career or relational advantages) can satisfy the statutory phrase.
  4. Application to Raniere's jury-instruction challenges: The District Court instructed the jury that a "commercial sexual act" is any sex act "of which anything of value is given to or received by any person" and additionally that a thing "of value" need not involve a monetary exchange. Raniere objected to the District Court's use of "because of" rather than "on account of," and to the explicit statement that a thing of value need not be monetary. The court found no error: "because of" is effectively synonymous with "on account of" (citing Gross), and the instruction's statement that value need not be monetary tracked the court's textual holding that the statute does not require a financial component.
  5. Sufficiency-of-the-evidence review (standards): The court reiterated the demanding standard applicable to sufficiency challenges: appellate review credits all inferences in favor of the prosecution and sustains the jury's verdict if any rational trier of fact could have found the elements beyond a reasonable doubt (citing Jackson, Musacchio, Capers, Ho, Atilla).
  6. Application — "anything of value": The Government presented evidence that DOS "masters" (including Allison Mack) obtained and maintained privileged positions and benefited from free labor and other advantages tied to their relationship with Raniere and to recruiting and assigning "slaves." The court held that such privileged positions and associated benefits could constitute intangible "value" under § 1591 and that the evidence was sufficient for a jury to find "anything of value" was given or received in connection with sexual acts.
  7. Application — "on account of" (causal connection): The court interpreted "on account of" to require a causal connection between the sexual act and the giving/receiving of anything of value (citing Rousey). Reviewing the trial evidence (e.g., testimony that Nicole understood making Raniere happy mattered to her relationship with Mack, that Mack directed Nicole to contact Raniere and assigned contacts and roles, that Nicole kept Mack apprised of the May 31 incident, and that privileges followed recruiting and retention), the court concluded that the Government offered sufficient evidence from which a reasonable jury could find a causal link between sexual assignments and receiving privileged positions/benefits.
  8. Application — "coercion": The court reviewed the statutory definition of coercion and "serious harm" (including nonphysical harms such as reputational or financial harms) and considered victim testimony that recruits provided collateral (e.g., damaging letters, sexually explicit materials), that victims understood collateral could be released if they broke commitments, and that victims felt they had no choice. The court concluded that a rational trier of fact could find coercion beyond a reasonable doubt.

Holding and Implications

Holding:

The court held that, for purposes of 18 U.S.C. § 1591, the phrase "anything of value" need not have a monetary or financial component, and sexual exploitation need not have been conducted for profit to qualify as a "commercial sex act."

Consequence for the case:

  • The Second Circuit affirmed the District Court's October 30, 2020 judgment as to Raniere's sex trafficking-related offenses: the sex trafficking conspiracy (Count 5), the sex trafficking of Nicole (Count 6), the attempted sex trafficking of Jay (Count 7), and the racketeering act of sex trafficking of Nicole (Act 10A).

Broader implications:

The opinion clarifies that § 1591's definition of "commercial sex act" encompasses non-monetary, intangible benefits (such as privileged positions, career or relational advantages, or free labor) and treats "value" as a subjective concept. The court's textual holding narrows arguments that § 1591 should be read to reach only monetary or profit-motivated sexual exploitation. The decision thus affirms that nonfinancial exchanges tied to sexual exploitation can satisfy § 1591 and that evidence of such exchanges and of coercion may be sufficient to sustain convictions under § 1591.

Disposition

For the reasons stated above and in the contemporaneous summary order, the Court AFFIRMED the District Court's judgment as to the specified sex trafficking counts and related racketeering act.


Note: This summary is based exclusively on the contents of the provided opinion and does not include material beyond the opinion's text.

United States of America, Appellee, v. Keith Raniere, also known as Vanguard, and Clare Bronfman, Defendants-Appellants, Allison Mack, Kathy Russell, Lauren Salzman, and Nancy Salzman, also known as Prefect, Defendants.

JOSÉ A. CABRANES, CIRCUIT JUDGE.

ARGUED: MAY 3, 2022

On Appeal from the United States District Court for the Eastern District of New York

Following a jury trial before the United States District Court for the Eastern District of New York (Nicholas G. Garaufis, Judge), Defendant Keith Raniere was convicted of numerous crimes related to his leadership of two organizations, a self-styled executive coaching and self-help organization called NXIVM and a secret society called DOS. On appeal, Raniere challenges his convictions for sex trafficking crimes, in violation of 18 U.S.C. § 1591. At the center of his appeal is the meaning of "commercial sex act," which Section 1591 defines as "any sex act, on account of which anything of value is given to or received by any person." 18 U.S.C. § 1591(e)(3). Raniere principally argues that to qualify as a "commercial sex act," there must be a monetary or financial component to the "[]thing of value" that is given or received and the relevant sexual exploitation must be for profit. He contends that evidence the Government submitted at trial showing that individuals received benefits, such as privileged positions within an organization, are insufficient to sustain his sex trafficking convictions. We conclude that Section 1591 requires neither that a "[]thing of value" have a monetary or financial component nor that the sexual exploitation be conducted for profit. Accordingly, we AFFIRM the October 30, 2020 judgment as it concerns Raniere's sex trafficking offenses: the sex trafficking conspiracy (Count 5), the sex trafficking of Nicole (Count 6), the attempted sex trafficking of Jay (Count 7), and the racketeering act of sex trafficking of Nicole (Act 10A).

TANYA HAJJAR, Assistant United States Attorney (Kevin Trowel, Assistant United States Attorney, on the brief), for Breon Peace, United States Attorney, Eastern District of New York, Brooklyn, NY, for Appellee United States of America.

JOSEPH M. TULLY, Tully & Weiss Attorneys at Law, Martinez, CA (Jennifer Bonjean, Bonjean Law Group, PLLC, New York, NY, on the brief), for Defendant-Appellant Keith Raniere.

Before: Calabresi, Cabranes, and Sullivan, Circuit Judges.

JOSÉ A. CABRANES, CIRCUIT JUDGE.

After a six-week jury trial, Keith Raniere was convicted in the United states District Court for the Eastern District of New York (Nicholas G. Garaufis, Judge) of numerous counts related to his leadership of two organizations: a self-styled executive coaching and self-help organization called NXIVM and a secret society called "DOs," an acronym for "Dominus Obsequious sororium," a phrase that roughly translates to "Lord/Master of the Obedient Female Companions." At trial, the Government presented evidence that

Raniere led both entities as pyramid organizations, and that he- alongside his "inner circle"-committed, attempted, or conspired to commit various crimes, including sex trafficking, forced labor, identity theft, wire fraud, racketeering, sexual exploitation of a minor, possession of child pornography, and obstruction of justice. During the lengthy trial, the Government also presented evidence that members of the organizations recruited and groomed sexual partners for Raniere, and that numerous women were coerced to engage in nonconsensual sexual acts with Raniere.

On appeal, Raniere raises numerous challenges to his various convictions. By summary order issued on the same day as this opinion, we dispose of most of Raniere's arguments (along with the appeal of Raniere's co-defendant, Clare Bronfman). We write separately here to address Raniere's arguments concerning his sex trafficking convictions under 18 U.S.C. § 1591.

Raniere's arguments turn on the meaning of "commercial sex act," which the statute defines as "any sex act, on account of which anything of value is given to or received by any person." 18 U.S.C. § 1591(e)(3). He principally argues that to qualify as a "commercial sex act," there must be a monetary or financial component to the "[]thing of value" that is given or received, and the sexual exploitation must be for profit. We conclude that the statute has no such requirement. Accordingly, we AFFIRM the District Court's judgment concerning his sex trafficking convictions.

In particular, through this opinion, we AFFIRM his convictions for the sex trafficking conspiracy (Count 5), the sex trafficking of Nicole (Count 6), the attempted sex trafficking of Jay (Count 7), and the racketeering act of sex trafficking of Nicole (Act 10A).

I. BACKGROUND

Because Raniere appeals his convictions following a jury trial, we recite the facts from the trial evidence "in the light most favorable to the prosecution." Musacchio v. United States, 577 U.S. 237, 243 (2016) ("The reviewing court considers only the 'legal' question 'whether, after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt.'") (quoting Jackson v. Virginia, 443 U.S. 307, 319 (1979)); see also, e.g., United States v. Napout, 963 F.3d 163, 168 (2d Cir. 2020) (noting that "[b]ecause appellants . . . appeal their convictions following a jury trial, we recount the facts viewing the evidence adduced in the district court in 'the light most favorable to the government, crediting any inferences that the jury might have drawn in its favor'" (quoting United States v. Rosemond, 841 F.3d 95, 99100 (2d Cir. 2016))).

In or around 2003, Raniere founded an organization called NXIVM, a self-styled executive coaching and self-help organization. New members paid thousands of dollars to attend self-help workshops. NXIVM members referred to Raniere as "Vanguard."

In 2015, Raniere created the secret society "DOS," which was structured as a pyramid, with Raniere at the head, followed by first-line "masters" and their subordinate "slaves." "Slaves" were expected to be obedient to their "masters."

Apart from Raniere, all DOS members were women. And Raniere's identity as the head of DOS was initially concealed from newly recruited "slaves," who were told that the organization was a "women's-only secret society."

DOS "masters" recruited slaves mostly from NXIVM and targeted women who were experiencing difficulties in their lives. To join, DOS recruits were required to provide "collateral" to prove their commitment to the organization. "Collateral" took many forms, including sexually explicit photographs and videos of themselves, rights to financial assets, and letters containing damaging accusations-whether true or untrue-about family members and friends.

DOS "slaves" were expected to provide their "masters" with services called "acts of care," which included buying them groceries, editing videos, cleaning, and organizing. Each "slave" was expected to provide about an hour of work per week for her "master" as her "normal contribution." In some cases, "masters" assigned their "slaves" to engage in sexual conduct with Raniere and implied that collateral might be released if the salves refused. DOS "slaves" were also required to be branded with a symbol that, unbeknownst to them, consisted of Raniere's initials. During the branding ceremony, participants were normally required to be nude and to say, "Master[,] please brand me. It would be an honor, an honor that I want to wear for the [re]st of my life."

Allison Mack-a DOS "master" and one of Raniere's codefendants who pleaded guilty to racketeering and racketeering conspiracy-recruited Nicole to join DOS as a "slave" in February 2016. As part of that process, Mack asked that Nicole provide "collateral." Nicole provided a series of letters she wrote falsely alleging sexual abuse by her father and other damaging accusations, as well as a sexually explicit video of herself. She was later required to provide additional "collateral," including credit card authorizations and the right to her grandmother's wedding ring.

The District Court ordered that during trial, certain witnesses were only to be referred to by first name or pseudonym.

Mack subsequently "assigned" Nicole to contact Raniere and tell him that she would do "anything that he asked." On May 31, 2016-while Nicole and Mack were together in Mack's house- Raniere called Mack, and Mack instructed Nicole to go outside so that Nicole would meet Raniere "across the grass" from the house's backdoor. Raniere subsequently blindfolded Nicole, led her into a car, and drove her to a house. He then led Nicole-still blindfolded- through some trees and inside a building. There, he instructed her to undress and tied her to a table. Another person in the room, whose identity was unknown to Nicole, performed oral sex on Nicole. Nicole subsequently told Mack about the incident, and Mack called Nicole "really brave."

Nicole had additional sexual encounters with Raniere during her time as a DOS "slave." Mack regularly required Nicole and other "slaves" to pose for nude photographs, including close-up photographs of their genitalia. Nicole also performed uncompensated work for Mack, including transcribing tapes and reviewing articles.

Mack also recruited another "slave," India, who in turn recruited a second-order "slave" named Jay. Jay provided "collateral" to India, including a sex tape and a video describing abuse to which she was subjected as a child. She provided further "collateral" on a monthly basis.

Jay was required to perform uncompensated services for Mack, including cleaning her house, doing her laundry, and picking up her groceries. She was also required to transcribe certain videos without compensation. In addition, Mack gave Jay a "special assignment" to "seduce" Raniere and "have him take a naked picture" of Jay; Jay understood this assignment to include having sex with Raniere. Jay refused to carry out the assignment and decided to leave DOS.

After Raniere and several members of his "inner circle" were indicted, each of Raniere's co-defendants pleaded guilty to various crimes. Following a six-week jury trial before Judge Garaufis, Raniere was convicted of: racketeering conspiracy (Count 1); racketeering (Count 2); forced labor conspiracy (Count 3); wire fraud conspiracy (Count 4); sex trafficking conspiracy (Count 5); sex trafficking of Nicole (Count 6); and attempted sex trafficking of Jay (Count 7). In support of their guilty finding for Count 2, the jury found that the Government had proved that Raniere had engaged in all of the alleged racketeering acts: four acts of conspiracy to commit identity theft, two acts of identity theft, conspiracy to unlawfully possess an identification document, two acts of sexual exploitation of a child, possession of child pornography, conspiracy to alter records for use in an official proceeding, trafficking for labor and services, document servitude, extortion, sex trafficking of Nicole, and forced labor. The District Court sentenced Raniere principally to 120 years' imprisonment and a $250,000 fine.

We refer to the counts as they appear on the verdict sheet.

Document servitude occurs when one:

knowingly destroys, conceals, removes, confiscates, or possesses any actual or purported passport or other immigration document, or any other actual or purported government identification document, of another person . . . to prevent or restrict or to attempt to prevent or restrict, without lawful authority, the person's liberty to move or travel, in order to maintain the labor or services of that person, when the person is or has been a victim of a severe form of trafficking in persons.
18 U.S.C. § 1592(a).


The racketeering act of sex trafficking of Nicole was referred to on the verdict sheet as Act 10A.

II. DISCUSSION

We dispose of most of Raniere's arguments on appeal in a summary order filed simultaneously herewith. We write separately in this opinion to address Raniere's argument that a "commercial sex act"-statutorily defined as "any sex act, on account of which anything of value is given to or received by any person," 18 U.S.C. § 1591(e)(3)- must involve the exchange of monetary or financial benefits. We first address the statutory text before turning to Raniere's specific challenges.

A. "Commercial Sex Act"

Congress enacted the statute at the center of this appeal, 18 U.S.C. § 1591, as part of the Trafficking Victims Protection Act of 2000 ("TVPA"), Pub. L. No. 106-386, 114 Stat. 1464 (2000). In passing the TVPA, Congress's purpose was "to combat trafficking in persons, a contemporary manifestation of slavery whose victims are predominantly women and children, to ensure just and effective punishment of traffickers, and to protect their victims." 22 U.S.C. § 7101(a).

In relevant part, Section 1591 provides for punishment of any individual: (a) Who[] knowingly

(1) in or affecting interstate or foreign commerce, . . . recruits, entices, harbors, transports, provides, obtains, advertises, maintains, patronizes, or solicits by any means a person; or
(2) benefits, financially or by receiving anything of value, from participation in a venture which has engaged in an act described in violation of paragraph (1),
[while also] knowing[] . . . that means of force, threats of force, fraud, coercion . . ., or any combination of such means will be used to cause the person to engage in a commercial sex act, ....
18 U.S.C. § 1591(a) (emphasis added).

Section 1591 goes on to define a "commercial sex act" as "any sex act, on account of which anything of value is given to or received by any person." Id. § 1591(e)(3) (emphasis added). The statute does not explicitly define the phrase "anything of value," and the scope of that phrase is the subject of the present appeal.

Raniere argues that Section 1591 "was designed to punish sexual exploitation for economic profit." Raniere's Br. 23-24; see also Raniere's Supp. Br. 9. He therefore concludes that the phrase "anything of value," as it is used in the statute, must mean "economic benefit[]." Raniere's Br. at 24. We do not agree.

We begin our analysis "with the statutory text, exhausting 'all the textual and structural clues' bearing on its meaning and construing each word 'in its context and in light of the terms surrounding it.'" United States v. Bedi, 15 F.4th 222, 226 (2d Cir. 2021) (footnote omitted) (first quoting Wis. Cent. Ltd. v. United States, 138 S.Ct. 2067, 2074 (2018); then quoting Leocal v. Ashcroft, 543 U.S. 1, 9 (2004)). Where, as here, a phrase is "not defined by statute, we normally construe it in accord with its ordinary or natural meaning." Smith v. United States, 508 U.S. 223, 228 (1993). If we find that a phrase is unambiguous and is "coherent and consistent" with the statutory scheme, then "the inquiry ceases." Friends of the E. Hampton Airport, Inc. v. Town of E. Hampton, 841 F.3d 133, 148 (2d Cir. 2016) (quoting Kingdomware Techs., Inc. v. United States, 579 U.S. 162, 171 (2016)); see also Matal v. Tam, 137 S.Ct. 1744, 1756 (2017) (rejecting a proposed "resort to legislative history" as unpersuasive because a court's "inquiry into the meaning of the statute's text ceases when 'the statutory language is unambiguous and the statutory scheme is coherent and consistent'") (quoting Barnhart v. Sigmon Coal Co., 534 U.S. 438, 450, 456 (2002)).

We start with the prefix "any" in the phrase "anything of value." "Read naturally, the word 'any' has an expansive meaning, that is, one or some indiscriminately of whatever kind." Ali v. Fed. Bureau of Prisons, 552 U.S. 214, 219 (2008) (cleaned up). Our understanding of "anything of value" is thus guided by the expansive meaning of "any." See United States v. Cook, 782 F.3d 983, 988 (8th Cir. 2015) ("The phrase 'anything of value' [in Section 1591(e)(3)] is extremely broad."). In addition, we observe that Congress's definition of "commercial sex act"-"any sex act, on account of which anything of value is given to or received by any person," 18 U.S.C. § 1591(e)(3) (emphases added)- uses the word or prefix "any" three times. Congress's repeated use of the word "any" in its definition "commercial sex act" further supports an expansive understanding of the specific phrase at issue here, "anything of value."

In United States v. Gonzales, 520 U.S. 1 (1997), the Supreme Court "considered a provision [18 U.S.C. § 924(c)(1)] that imposed an additional sentence for firearms used in federal drug trafficking crimes and provided that such additional sentence shall not be concurrent with 'any other term of imprisonment.'" Ali, 552 U.S. at 219 (quoting Gonzales, 520 U.S. at 4). "Notwithstanding the subsection's initial reference to federal drug trafficking crimes, [the Court] held that the expansive word 'any' and the absence of restrictive language left 'no basis in the text for limiting' the phrase 'any other term of imprisonment' to federal sentences." Id. (quoting Gonzales, 520 U.S. at 5).

We have previously had occasion, albeit in other contexts, to consider the remainder of the phrase. We have clarified in those other contexts that the phrase "thing of value" "is generally construed to cover intangibles as well as tangibles." United States v. Girard, 601 F.2d 69, 71 (2d Cir. 1979). In Girard, we observed that all of the following are "things of value": "amusement," "[s]exual intercourse, or the promise of sexual intercourse," "a promise to reinstate an employee," "an agreement not to run in a primary election," and "[t]he testimony of a witness." Id. (citations omitted). And in United States v. Maneri, we held that the phrase "thing of value" includes intangibles, specifically "the opportunity for a sexual encounter, in return for distributing child pornography" in the context of the advisory Sentencing Guidelines for 18 U.S.C. § 2252. 353 F.3d 165, 168 (2d Cir. 2003). Although the statutory phrase at issue here is "anything of value" and not a misspelled version, "any thing of value," our earlier holdings on "thing of value" remain instructive. Indeed, adding the expansive prefix "any" onto "thing" only underscores our understanding that "anything of value" should be broadly understood to include intangibles. A "thing of value" as it appears in Section 1591 may be intangible.

Finally, and consistent with our expansive understanding of the phrase thus far, we interpret the word "value" to refer to "a subjective, rather than objective, concept." Cook, 782 F.3d at 988 (quoting United States v. Petrovic, 701 F.3d 849, 858 (8th Cir. 2012)). Stated differently, in the ordinary sense, we construe the word "value" to "focus . . . on the value which the [recipient] subjectively attaches to what is sought to be received." Id. at 988-89 (quoting Petrovic, 701 F.3d at 858); see also United States v. Williams, 705 F.2d 603, 623 (2d Cir. 1983) (concluding that the phrase "anything of value," as it is used in the bribery statute, 18 U.S.C. § 201, "has consistently been given a broad meaning" and that the district court correctly construed the phrase "to focus on the value that the defendants subjectively attached to the items received"). This conforms with the dictionary definition of "value," which includes "relative worth, utility, or importance." 3 Webster's Third New International Dictionary 2530 (1976).

Bearing in mind these textual clues, we conclude that, as it is used in Section 1591, the phrase "anything of value" need not have a monetary or financial component. Nothing in the statutory text indicates such a requirement, and in fact, a natural reading of the broad language used in Section 1591(e)(3) forecloses such a reading. Put another way, for purposes of the statute, monetary worth is not the sole measure of "value." See United States v. Nilsen, 967 F.2d 539, 543 (11th Cir. 1992) (discussing the phrase "thing of value" as it is used in 18 U.S.C. § 876). Accordingly, we hold that for sexual exploitation to be actionable under Section 1591, it need not have been conducted- as Raniere argues it must-for profit.

A number of district courts within our Circuit have reached similar conclusions concerning Section 1591's definition of "commercial sex act" in civil cases brought pursuant to 18 U.S.C. § 1595, which provides for a civil cause of action for violations of the TVPA. In these cases, courts have concluded that the statutory phrase "anything of value" encompasses promises to help a person with career advancement. See, e.g., Eckhart v. Fox News Network, LLC, No. 20-CV-5593 (RA), 2021 WL 4124616, at *9 (S.D.N.Y. Sept. 9, 2021); Ardolf v. Weber, 332 F.R.D. 467, 478 (S.D.N.Y. 2019); Geiss v. Weinstein Co. Holdings LLC, 383 F.Supp.3d 156, 168 (S.D.N.Y. 2019); Canosa v. Ziff, No. 18-CV-4115 (PAE), 2019 WL 498865, at *22 n.26 (S.D.N.Y. Jan. 28, 2019); Noble v. Weinstein, 335 F.Supp.3d 504, 521 (S.D.N.Y. 2018).

B. Raniere's Arguments

Turning to Raniere's specific arguments on appeal as they concern his sex trafficking convictions, we find none of them persuasive.

a. Challenges to the Jury Instruction

Raniere first argues that the District Court erred in its instructions to the jury on the sex trafficking counts.

"We review de novo a properly preserved challenge to a jury instruction, reversing where the charge, viewed as a whole, either failed to inform the jury adequately of the law or misled the jury about the correct legal rule." United States v. Capers, 20 F.4th 105, 116 (2d Cir. 2021) (quoting United States v. Binday, 804 F.3d 558, 581-82 (2d Cir. 2015)). "In reviewing a jury instruction, we 'examine not only the specific language that the defendant challenges but also the instructions as a whole to see if the entire charge delivered a correct interpretation of the law.'" United States v. Al Kassar, 660 F.3d 108, 127 (2d Cir. 2011) (quoting United States v. Bala, 236 F.3d 87, 94-95 (2d Cir. 2000)).

We assume without deciding that Raniere preserved the relevant challenges to the jury instructions below.

The District Court instructed the jury on the "element" of sex trafficking as follows:

The third element that the Government must prove is that the Defendant knew that Nicole would be engaged in a commercial sexual act. A commercial sexual act is any sex act of which anything of value is given to or received by any person because of such sex act. It is not required that the victim actually performed a commercial sex act as long as the Government has proved that the Defendant recruited, enticed, harbored, transported, provided, obtained, maintained, patronized or solicited the victim for purposes of engaging in commercial sex acts . A thing "of value" need not involve a monetary exchange and need not have any financial component. The phrase "any sex act" should be given its plain meaning and may include any act performed with another for sexual gratification.

Jury Charge at 99-100, United States v. Mack, No. 18-CR-204 (NGG) (E.D.N.Y. June 18, 2019), ECF No. 728 (emphases added).

Raniere's initial objection is to the first italicized sentence above. In particular, he disputes the propriety of the District Court's usage of the phrase "because of" and argues that the sentence should have read: "A 'commercial sex act' is any sex act on account of which anything of value is given to or received by any person." Defendant Keith Raniere's Requests to Charge at 64, 86, Mack, No. 18-CR-204 (June 7, 2019), ECF No. 692-1 (emphasis added). He argues that the phrase "because of" "means only a 'connection to' or a proximate causational relationship to," whereas "on account of" "underscores a quid pro quo." Raniere's Supp. Br. 18.

We find no error in the District Court's use of the term "because of." Although the statute, 18 U.S.C. § 1591(e)(3), uses the phrase "on account of," we find no meaningful difference between that phrase and "because of." Raniere does not point to any authority supporting his view of the difference in meaning between "because of" and "on account of," which we understand to be virtually indistinguishable. Indeed, in a different context, the Supreme Court has noted that "[t]he words 'because of' mean 'by reason of: on account of.'" Gross v. FBL Fin. Servs., Inc., 557 U.S. 167, 176 (2009) (quoting 1 Webster's Third New International Dictionary 194 (1966)). As a result, the District Court's use of "because of" neither failed to inform the jury adequately of the law nor misled the jury about the correct legal rule.

Raniere next challenges the second italicized sentence in the above jury instructions: "A thing 'of value' need not involve a monetary exchange and need not have any financial component." He argues that a "commercial sex act" must involve the exchange of monetary of financial benefits. For the reasons stated in Section II.A of this opinion, ante, we reject his argument. As we have concluded, the phrase "anything of value" need not have a monetary or financial component, and the actionable sexual exploitation need not have been conducted for profit. The jury was neither misinformed nor misled about the law. Accordingly, we find no error in the District Court's instruction.

To the extent Raniere also contends that the second italicized sentence in the above jury instructions is duplicative because the first italicized sentence's reference to "anything of value" already implied that the thing of value need not involve a monetary exchange or have any financial component, we fail to see how any potential redundancy misled the jury about the correct legal rule.

b. Sufficiency-of-the-Evidence Challenge to the Sex Trafficking Counts

Next, Raniere challenges the sufficiency of the evidence presented against him at trial concerning his Section 1591 counts: sex trafficking conspiracy, sex trafficking of Nicole, and attempted sex trafficking of Jay.

When preserved, we review claims of insufficient evidence de novo. Capers, 20 F.4th at 113. When hearing a sufficiency challenge on appeal, we make a "limited inquiry tailored to ensure that a defendant receives the minimum that due process requires: a 'meaningful opportunity to defend' against the charge against him and a jury finding of guilt 'beyond a reasonable doubt.'" Musacchio v. United States, 577 U.S. 237, 243 (2016) (quoting Jackson v. Virginia, 443 U.S. 307, 314-15 (1979)). "All that a defendant is entitled to on a sufficiency challenge is for the court to make a 'legal' determination whether the evidence was strong enough to reach a jury at all." Id. at 244 (quoting Jackson, 443 U.S. at 319).

It is no surprise then that a defendant raising a sufficiency challenge "face[s] a heavy burden." Capers, 20 F.4th at 113 (quoting United States v. Ho, 984 F.3d 191, 199 (2d Cir. 2020)). Indeed, "we must sustain the jury's verdict if, crediting every inference that could have been drawn in the government's favor and viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt." Id. (cleaned up). We "may enter a judgment of acquittal only if the evidence that the defendant committed the crime alleged is nonexistent or so meager that no reasonable jury could find guilt beyond a reasonable doubt." Id. (quoting United States v. Atilla, 966 F.3d 118, 128 (2d Cir. 2020)).

In conducting our review, "[w]e must analyze the evidence in conjunction, not in isolation, and apply the sufficiency test to the totality of the government's case and not to each element, as each fact may gain color from others." Atilla, 966 F.3d at 128 (cleaned up). And "[w]e must credit every inference that the jury might have drawn in favor of the government, because the task of choosing among competing, permissible inferences is for the jury, not for the reviewing court." Id. (cleaned up).

i. "Anything of Value"

Raniere first argues that the Government failed to provide evidence that "anything of value" was received or given in connection with a sex act. We disagree.

The Government did in fact present evidence at trial that DOS "masters," including Mack, obtained "things of value" in connection with assigning their DOS "slaves" to engage in sexual acts with Raniere. For example, the Government presented evidence that Mack was able to maintain and strengthen her privileged position in the DOS hierarchy because of the relationship between Raniere and one of Mack's "slaves," Nicole. The Government also presented evidence that Raniere set an expectation that DOS "masters" would receive approximately 40 hours of "work" per week from their various "slaves." Gov. App'x 235 (testimony of Lauren Salzman, one of Raniere's co-conspirators who pleaded guilty to racketeering and racketeering conspiracy). Moreover, those "masters" who were able to recruit a sufficient number of "slaves" (and "slaves" of "slaves") would qualify for a "special position" and receive "special privileges" from Raniere. Id. Furthermore, the Government presented evidence that Raniere authorized certain payments to Mack for her work as "head trainer" at the same time that Mack encouraged a "slave," India, to "complete [an] assignment" involving "tak[ing] all her clothes off, while [Raniere was] clothed, pos[ing] in the most revealing way, and hav[ing Raniere] take a picture of her." Id. at 1269, 1271 (emails between Raniere and Mack).

Raniere argues that "[m]aintaining a spot in the first line" of DOS cannot constitute "anything of value" for purposes of Section 1591. Id. at 1047 (Government counsel's trial summation). But as discussed above, we reject the argument that only the exchange of things with monetary value can suffice for purposes of the statutory definition of "commercial sex act." A privileged position in an organization may constitute intangible "value." And indeed, here, evidence presented at trial demonstrated that the privileged position came with direct benefits, including free labor from the "slaves" who were expected to perform "acts of care" for their "masters."

The evidence regarding the giving or receiving of "anything of value" submitted at trial was neither nonexistent nor meager. We conclude that the evidence was strong enough to reach a jury and that Raniere was afforded at least "the minimum that due process requires." Musacchio, 577 U.S. at 243. We therefore decline to disturb Raniere's convictions on these counts. The Government did not fail to provide sufficient evidence that "anything of value" was received or given in connection with a sex act.

ii. "On Account of"

Next, Raniere argues that even if things of value were given or received, they were not given or received "on account of" a sexual act. The Government presented evidence that on May 31, 2016, Raniere blindfolded Nicole, ordered her to undress, and tied her to a table, after which a third person performed oral sex on Nicole in Raniere's presence. Raniere argues that the Government failed to present evidence that Mack-Nicole's "master"-received anything of value "on account of" the May 31, 2016 sexual act.

In another context, the Supreme Court has interpreted the phrase "'on account of' to "require[e] a causal connection between the term that the phrase 'on account of' modifies and the factor specified in the statute ...." Rousey v. Jacoway, 544 U.S. 320, 326 (2005) (interpreting 11 U.S.C. § 522(d)(10)(E)). Similarly, we interpret the statutory language in Section 1591(e)(3) to require a causal connection between the sexual act and the giving or receiving of anything of value.

With that in mind, we conclude that Raniere's sufficiency challenge lacks merit. At trial, the Government offered evidence from which a reasonable jury could have concluded that Mack's receipt of various things of value were causally connected to her assigning her "slaves" to engage in sexual acts with Raniere, including the May 31, 2016 incident. This included testimony that Mack directed Nicole "[t]o reach out to . . . Raniere," which Nicole first did in April 2016 by email. Gov. App'x 747-48 (testimony of Nicole). The Government also offered testimony that Nicole understood Mack's relationship with Raniere to be the "most important relationship" to Mack, and that, accordingly, Nicole understood that it was "important to [Nicole's] relationship with [Mack] to make [Raniere] happy" and that how Nicole "related to [Raniere] . . . reflected on [Mack]." Id. at 764-65 (testimony of Nicole). Nicole understood that she needed to be "well behaved" in front of Raniere. Id. at 765. And Nicole kept Mack apprised of her relationship with Raniere, including by informing her of the May 31, 2016 incident. Id. at 760. She further received encouragement from Mack to "make [Raniere's] life easier." Id. at 764.

The Government's evidence purporting to establish that Mack received things of value "on account of" her assigning "slaves" to engage in sexual acts with Raniere was neither nonexistent nor meager. Based on this evidence, a reasonable jury could conclude that Mack's privileged position in DOS was causally connected with her "assignment" of Nicole to Raniere for sexual purposes. As with the evidence that "anything of value" was received or given in connection with a sex act, the evidence relevant to whether Mack received things of value "on account of" her assigning "slaves" to engage in sexual acts with Raniere was strong enough to reach a jury. Thus, we conclude that Raniere had a meaningful opportunity to defend himself.

iii. "Coercion"

Finally, Raniere argues that there was no evidence that the sexual acts were "coerced" as required by 18 U.S.C. § 1591. The statute defines "coercion" to include "threats of serious harm," 18 U.S.C. § 1591(e)(2)(A), and the statute in turn defines "serious harm" to mean:

any harm, whether physical or nonphysical, including psychological, financial, or reputational harm, that is sufficiently serious, under all the surrounding circumstances, to compel a reasonable person of the same background and in the same circumstances to perform or to continue performing commercial sexual activity in order to avoid incurring that harm.

Id. § 1591(e)(5).

Nicole testified that she felt that she had "[n]o choice" in complying with Mack's instruction to "tell [Raniere] that [she] would do anything that he asked [her] to do." Gov. App'x 756 (testimony of Nicole). She further testified that she had submitted "collateral" to Mack in the form of, inter alia, letters implicating her family members in criminal activity, a sexually explicit video, and a letter about a prominent former romantic partner that could "ruin [Nicole's] career." Id. at 740. Nicole testified that she understood that breaking her "commitment" to DOS and her "master" would mean that her "collateral" would be released. Id. at 746.

Once again, Raniere has failed to persuade us that there is insufficient evidence to sustain his convictions. Any rational trier of fact could have found coercion beyond a reasonable doubt.

III. CONCLUSION

To summarize: We hold that to qualify as a "commercial sex act" for purposes of 18 U.S.C. § 1591, the "[]thing of value" given or received need not have a monetary or financial component. Thus, for sexual exploitation to be actionable under Section 1591, it need not have been conducted for profit.

For the foregoing reasons, and for the reasons explained in our summary order also entered today, we AFFIRM the District Court's judgment of conviction entered on October 30, 2020, as it concerns the sex trafficking conspiracy (Count 5), the sex trafficking of Nicole (Count 6), the attempted sex trafficking of Jay (Count 7), and the racketeering act of sex trafficking of Nicole (Act 10A).

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United States v. Raniere
(Dec 9, 2022)