Latest / The Dustlight Archives / NXIVM: Episode 4: The Bronfmans, Frank Parlato, and Money Laundering Part 1

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NXIVM: Episode 4: The Bronfmans, Frank Parlato, and Money Laundering Part 1 · The Dustlight Archives

• 0:02
  SPEAKER_00: It is time now to move ever higher up into the powerful families that controlled Nexium.
• 0:09
  SPEAKER_00: The Kafritz family have intelligence ties and have been moving in elite financial circles for the last 100 years.
• 0:19
  SPEAKER_00: But the Bromfmans, they've been doing it for at least 150.
• 0:25
  SPEAKER_00: Possibly quite a bit longer than that.
• 0:27
  SPEAKER_00: As when we first meet them, they are already wealthy Russian tobacco farmers with all of the documents leading back further in their history, either destroyed or buried deep in the vaults of complex NGOs.
• 0:42
  SPEAKER_00: Oftentimes on microfees, so degraded, so sensitive, that to cast a light on it would destroy them.
• 0:52
  SPEAKER_00: I would be lying if I didn't say I found it a little bit disconcerting that their name, even back then, translates from Yiddish to liquor man, given that liquor would become their main source of income once they crossed the ocean and came to the Americas.
• 1:09
  SPEAKER_00: And when they came, they would come with their four children, two servants and rabbi, funded and backed by Baron Maurice de Hirsch, a man who rivaled the Rothschilds in wealth, a man who didn't just fund migrations, but funded entire nations.
• 1:30
  SPEAKER_00: If the Kaffritz family controls the conference rooms of Washington, DC, the Bromfmans own the bedrock of Canada.
• 1:39
  SPEAKER_00: And where the Kaffritz family had intelligence connections, the Bromfmans have mercenary intelligence firms working for them and ties to three-letter US groups in organized crime to go back to their very inception.
• 1:56
  SPEAKER_00: Come with me as we travel higher and higher.
• 1:59
  SPEAKER_00: But don't forget that as the view gets better, the air gets thinner.
• 2:04
  SPEAKER_00: Welcome to the Dust Light Archives.
• 2:10
  SPEAKER_00: Alright, so the earliest Bronfmans that we can track down are Yakiel and Mendel Bronfman, and they lived in Bessarabia, which is modern day Moldova.
• 2:26
  SPEAKER_00: They were tobacco farmers, and they were successful elites who decided to cross the ocean in the late 1800s during a time when the czarist state had become hostile to Jews, and I wanted to try to figure out exactly what their situation was, and I didn't come to something that was totally satisfying for me, but to the best of my understanding, you know, there was real serious persecution of Jewish people going on in that time period.
• 3:05
  SPEAKER_00: They had in fact passed something called the May Laws a few years prior, which really restricted abilities on owning land, uh as well as making it illegal to work on Sundays and a few other things.
• 3:23
  SPEAKER_00: But at the same time, it it wasn't like they were fleeing the country either.
• 3:30
  SPEAKER_00: I mean, when they leave, when they do actually leave, they sell their property, and they have connected themselves with this organization called the Jewish Colonization Association, which at the time was the largest charitable trust in the world.
• 3:49
  SPEAKER_00: It was funded by that guy I was mentioning at the beginning, Baron Morris DeHirsch.
• 3:55
  SPEAKER_00: And you could kind of think of him and his organization as if like if there were two separate but similar movements happening in that time, you had the Ross Childs on the one side that were funding Zionism, and on the other side of it, you had this man and the Jewish Colonization Association that was funding something closer to an assimilationist project, but it's certainly an assimilationist project that feels a little bit like colonization on its own.
• 4:35
  SPEAKER_00: Like if Israel was the colonization of Palestine to a degree with all of this money behind it, like I said, it was the most well-funded charitable organization in the entire world at that point.
• 4:51
  SPEAKER_00: It was trying to put people in powerful positions connected with them, trying to make sure that they had a lot of land and taking people that were very wealthy to begin with a lot of the time.
• 5:03
  SPEAKER_00: In fact, if you were to compare the amount of money this organization had, it would be somewhere just shy of like$1.5 billion that they were handing out.
• 5:15
  SPEAKER_00: So, regardless of where they fall on the spectrum between, say, fleeing a pogrom and sort of making a very calculated move to another country, and I'm not sure exactly where they fall on that line.
• 5:31
  SPEAKER_00: They sell their property, and like I said in the intro as well, they take their four children, two servants, and their rabbi with them, and they head to Saskatchewan originally.
• 5:44
  SPEAKER_00: And you know, the JCA has set them up with a farm.
• 5:48
  SPEAKER_00: So at that point, they attempt to grow some tobacco, like they were doing in the old country.
• 5:54
  SPEAKER_00: But tobacco doesn't grow very well in cold climates, and so their first attempt at farming fails.
• 6:02
  SPEAKER_00: And then what they'll tell you in their biographies, and you know, if you look them up on Wikipedia or whatever, is that Yikiel became a railroad laborer for a while, which was really weird to me because because, like, you know, if you have four kids you're supporting by yourself, two servants, and then like it's so odd.
• 6:28
  SPEAKER_00: I guess this was something that was a fairly typical thing to do at the time if you had the money to do it, but you bringing your own rabbi, it's hard for me to believe that you know you have a crop failure, and you're like, uh, well, okay, I guess it's time to go uh do what the Chinese immigrants are doing and go work on a railroad for a few cents a day or whatever it was they were paying at the time.
• 6:56
  SPEAKER_00: So I kind of looked more into this, and there's a couple of different takes a person could have on this story.
• 7:04
  SPEAKER_00: As far as I can tell, my best guess is that they there were all sorts of stipulations that came with being given this land by the JCA.
• 7:14
  SPEAKER_00: The JCA had deals with the British government at the time and stipulations about who could get the money and in what situation, and you could only receive the money if you were either working the land or contributing to the infrastructure.
• 7:35
  SPEAKER_00: So I think this was less about making money than it was making sure that he wasn't going to lose his benefactor.
• 7:46
  SPEAKER_00: Then the other part of this that I think is relevant, because they did a few other things too.
• 7:53
  SPEAKER_00: Like after spending a little bit of time working on the railways, they started selling white fish.
• 7:59
  SPEAKER_00: They were selling horses too.
• 8:01
  SPEAKER_00: I think that there was definitely an aspect of money laundering involved in this.
• 8:08
  SPEAKER_00: The way the tax system worked at the time, if you had tried to leave Tsarist Russia, they would have demanded a lot of the money from the sale of your land.
• 8:22
  SPEAKER_00: The, you know, whatever it was you were not bringing with you, whatever it was you had stocked up.
• 8:26
  SPEAKER_00: Like they weren't just gonna let you leave.
• 8:28
  SPEAKER_00: So they they most likely snuck the money over.
• 8:31
  SPEAKER_00: And one of the beauties of the JCA is that you could actually do stuff like say give money to the JCA in Russia and then have them give you money orders.
• 8:45
  SPEAKER_00: So it wasn't like they were sneaking gold coins out and you know, hidden in the so the lining of their clothes or something like that.
• 8:54
  SPEAKER_00: It was more so like they probably they got a certificate for their money, they came over, and then they met up with the JCA in Canada.
• 9:03
  SPEAKER_00: Even at that point, though, you couldn't really declare it because if they were to just declare this money, now you would have a couple of different things happen.
• 9:12
  SPEAKER_00: You would have, first of all, the British government looking to get their cut, but then also like Russia had diplomats and embassies also present in this area.
• 9:28
  SPEAKER_00: If they realized you would take in money from their country, what they would probably do is they would basically do almost a borderline like protection racket type situation, like kind of like a, oh well, you're Russian and you just moved over here, so we'll protect you, but also where is our fee?
• 9:45
  SPEAKER_00: It definitely also would not be out of the question at all for the British government at the time if they found out they were sneaking money from Russia to put a lien on their property.
• 9:58
  SPEAKER_00: And so this could cause all sorts of trouble for them.
• 10:00
  SPEAKER_00: So the easiest, best thing to do would be to, you know, have cash-only businesses.
• 10:07
  SPEAKER_00: I think that's where the white fish and the horse selling come in and just declare it as income.
• 10:15
  SPEAKER_00: And I feel pretty confident saying this too, because I spent some time looking at the amount of money a person in that time period at that place could make doing these things, and it just doesn't match up at all with the amount of income they had or the amount of income they would declare.
• 10:34
  SPEAKER_00: And also the one thing that all of this all of these different pursuits would have in common that I think is the through line between them, which also certainly would apply maybe even more so to liquor than to any of these other ways of making money I have mentioned, is understanding supply chains, understanding how to move traffic between borders and how to get product through to different places, understanding how to work the system.
• 11:12
  SPEAKER_00: And so when they end up buying their first hotel, I really think it was probably less about even actually owning a hotel at the time than it was about the liquor, even at that point, because liquor is another very cash-only business, but there were a bunch of weird laws in Canada at the time surrounding liquor, and it was much easier for a person to have a no-hassel liquor license if they owned a few guest rooms that they rent out.
• 11:46
  SPEAKER_00: So Yekiel dies in 1919, and at that point his four sons take over the family business, and they move hardcore into selling liquor and having that be their main source of income, that in hotels to a lesser degree.
• 12:06
  SPEAKER_00: And at this point, you know, prohibition is right around the corner in America, and you have a lot of that specific sort of moral feeling floating around and laws to back it up.
• 12:23
  SPEAKER_00: And so, even then, I mean they were they were working the Canadian system for sure.
• 12:28
  SPEAKER_00: Like there was a rule that it was illegal to sell alcohol in the province they were living in, but what you could do is you could make alcohol and then you could move it to another province and you could sell it there.
• 12:47
  SPEAKER_00: So they were doing a lot of that, and they were also selling it as medicine.
• 12:51
  SPEAKER_00: Uh they went by this was before they would eventually become seagrum's and have seagrums be their main source of income.
• 13:00
  SPEAKER_00: At this time, they called themselves the Canada Pure Drug Company, and they would sell products like the Rockabi Cough Cure or the hilariously named liver and kidney cure, which seems like an incredible like winking nod to the fact that they knew exactly what they were doing, and the people buying it knew exactly what they were doing.
• 13:28
  SPEAKER_00: And so they buy a few more hotels over time, and as America passes prohibition laws, they hook up with the Meyer Lansky Syndicate and start doing this thing where they basically export their liquor to small French islands off the coast.
• 13:50
  SPEAKER_00: Uh Saint Pierre or Michelone were two of the big ones at the time.
• 13:55
  SPEAKER_00: And they had these giant temperature-controlled warehouses that they had built there, and then Meyer Lansky, and to a lesser state, the Costello Syndicate as well, would basically drive up to those islands in speedboats and then buy the liquor and then use speedboats to sneak them back into America.
• 14:18
  SPEAKER_00: And they were fairly brazen with what they were doing.
• 14:21
  SPEAKER_00: Like they had these massive warehouses, and some of them also existed just like right near the border, too, between Canada and the US, were called boozoriums.
• 14:33
  SPEAKER_00: They at one port one point were exporting more high-end whiskey to these little islands off the coast than in all of France put together.
• 14:47
  SPEAKER_00: And they would face some legal troubles for all of this.
• 14:51
  SPEAKER_00: Like in 1935, they were taken to court over their liquor trafficking activities, and actually burned a ton of paperwork and managed to get a rid of enough evidence that there was no proof there was any coordination between them and these mob syndicates in the U.S.
• 15:14
  SPEAKER_00: that were picking these giant liquor shipments up off of these islands.
• 15:18
  SPEAKER_00: And I'm sure it didn't hurt either.
• 15:20
  SPEAKER_00: That I mean, you you're you own all of these hotels and hotel bars that are near the border, and this offers, I mean, a ton of blackmail and social opportunity, which I think the Bronfman's, as far back as we can go and as well as up to the current day, have always been pretty good at navigating.
• 15:47
  SPEAKER_00: You know, people who are drinking tend to be a little bit more loose-lipped.
• 15:52
  SPEAKER_00: You can pick up information that way, especially during the time of prohibition and stuff.
• 15:57
  SPEAKER_00: You know, you get some of these lawmakers, they end up in your hotel or your bar, and you go, hey, I've got a VIP room in the back where we've got the good stuff, and you know, you get them in your pocket.
• 16:11
  SPEAKER_00: And so I definitely think there was quite a bit of that going on as well.
• 16:16
  SPEAKER_00: But as prohibition is winding down, oh, they would all get away with it, by the way.
• 16:20
  SPEAKER_00: They they would uh win their court case, none of them would face any charges.
• 16:27
  SPEAKER_00: But as prohibition was winding down, I think they wanted to distance themselves from being so openly affiliated with the mob.
• 16:37
  SPEAKER_00: And so that's when they bought Seagrim and Sons Company and Joseph Segrum and Sons Company.
• 16:44
  SPEAKER_00: This was a medicine and liquor business that had had a good reputation for like a hundred years at this point.
• 16:52
  SPEAKER_00: So it was a way of kind of detaching themselves from their own reputation and then being able to operate under a name that had a better one.
• 17:01
  SPEAKER_00: Also, at this point, this is kind of when Samuel Bromfman, the son that I think was a little bit more of a shark than the other ones, managed to really kind of push all of his brothers out of the business.
• 17:16
  SPEAKER_00: He really kind of took the reins at this point and became the head of Seagrams.
• 17:24
  SPEAKER_00: And he also became the head of the Canadian Jewish Council, which would allow him as well as later on, his own son Edgar, who became head of the World Jewish Council, to control and bury a lot of their family history.
• 17:47
  SPEAKER_00: This was one of the things I was kind of talking about in the intro, as far as their ability to obscure exactly how far their wealth goes back, or exactly how they got some of it.
• 18:02
  SPEAKER_00: It also really is the first big step in turning the Bronfman family into a full-on political entity, because you know, if you run the Canadian Jewish Council at this point, you are speaking for more than just yourself and more for than just your family.
• 18:19
  SPEAKER_00: You have the ability to negotiate even with countries, and you know, I don't think it takes a rocket scientist to imagine how running an organization that claims to represent all the Jewish people in Canada could benefit you.
• 18:35
  SPEAKER_00: And Sam did another thing too.
• 18:38
  SPEAKER_00: He created the CEMP trust.
• 18:41
  SPEAKER_00: Each of those letters is named after the first initial of one of his children, and he really did a lot to make this a very airtight trust.
• 18:54
  SPEAKER_00: I think his own fights with his brothers had taught him that when this amount of money is involved, family members can backstab each other, they can do all sorts of underhanded maneuvers, and he really built this trust to try to make that impossible.
• 19:15
  SPEAKER_00: And and largely he succeeded, to be honest.
• 19:18
  SPEAKER_00: Like this is the trust that Sarah and Claire Brockman would end up dipping into to fund Nexium nearly a hundred years later.
• 19:26
  SPEAKER_00: And then I don't know, we we have a bunch of other, you know, I don't I don't want to spend too much time on this family in their history because we've got other places to be, but they definitely have a lot of very interesting stories.
• 19:43
  SPEAKER_00: I mean, it at one point, like there was a guy named James Rutkin who was a high-level syndicate member who had done a ton of liquor trafficking for them that tried to sue them, and they basically just destroyed his life.
• 20:03
  SPEAKER_00: Like he ended up facing a ton of legal troubles having to do with tax evasion, ended up supposedly slitting his own throat in a jail cell.
• 20:14
  SPEAKER_00: You know, that sort of stuff.
• 20:16
  SPEAKER_00: But let's jump ahead.
• 20:17
  SPEAKER_00: Sam dies, and Edgar Sr.
• 20:20
  SPEAKER_00: takes over.
• 20:21
  SPEAKER_00: Obviously, at that point, he would have just been Edgar, but he will have a son eventually, so we're gonna call him Edgar Sr.
• 20:27
  SPEAKER_00: from this point on.
• 20:28
  SPEAKER_00: And in 1981, he buys a 25% stake in DuPont Chemicals.
• 20:37
  SPEAKER_00: And I mean, obviously this would have been prior to him buying it, but like DuPont is heavily involved in like the Manhattan Project.
• 20:45
  SPEAKER_00: Like, I mean, this is the this is the sort of thing we're talking about.
• 20:49
  SPEAKER_00: And between them and the Cafrets, I mean, you have families that have direct financial ties to DARPA and the Manhattan Project that both end up in this Nexium cult.
• 21:03
  SPEAKER_00: He gains control of the World Jewish Council, like I said, uh, that had networks all over the world.
• 21:10
  SPEAKER_00: It's a low-key intelligence network he is at the head of at this point.
• 21:15
  SPEAKER_00: And uh he was also tight with Adnan Khashoggi, the arms trafficker, there was kind of a proto Jeffrey Epstein.
• 21:25
  SPEAKER_00: And actually, funny enough, I'll say that there is it is disputed, but I feel comfortable saying this, and I'll explain why.
• 21:34
  SPEAKER_00: Adnan Khashoggi would be the person who introduced Edgar to the mother of Claire and Sarah Bromfman, the woods who would be in Nexium.
• 21:46
  SPEAKER_00: Now, the story if you go to his Wikipedia, or if you go to no, you have to go to his Wikipedia, actually.
• 21:53
  SPEAKER_00: Georgiana Webb, I believe, does not have a Wikipedia of she is Her birth name is Rita Webb.
• 22:02
  SPEAKER_00: And if you go to Wikipedia, what they will tell you is they will tell you that when Edgar was in Mirabla, Spain, he went to a bar and just met this local woman that caught his eye and that he fell in love with.
• 22:21
  SPEAKER_00: And I would tell you that I would be immediately suspicious of any time you hear a story like this because this is not actually like it's almost always a cover for something else anytime you hear a story like that.
• 22:37
  SPEAKER_00: And you don't have to dig deep in this case because Mirabella Spain, it was like a company town owned by Keshogi.
• 22:44
  SPEAKER_00: Like it was one of his main trafficking hubs.
• 22:47
  SPEAKER_00: It was one of the main places where he would throw these huge yacht parties.
• 22:52
  SPEAKER_00: And there are even like unauthorized biographies of this of the Bronfman family that will tell you Adnan Khashoggi introduced Rita Webb to Edgar on a yacht.
• 23:09
  SPEAKER_00: Actually, funny enough, a yacht that Donald Trump would later buy and currently owns.
• 23:18
  SPEAKER_00: But I think there's a lot of reasons to believe this.
• 23:20
  SPEAKER_00: I think, first of all, because we know that Edgar Bronfman and Adnan Khashoggi had relations.
• 23:28
  SPEAKER_00: I don't my understanding of Mari Bellas, Spain at that time is that certainly if you're anybody there, your wife is probably affected by Adnan Khashoggi.
• 23:38
  SPEAKER_00: But certainly if you are a billionaire vacationing there, there's probably a reason you chose that place in specific.
• 23:45
  SPEAKER_00: But also, the name change, too, is very uh typical of Adnan Khashoggi and his operations.
• 23:52
  SPEAKER_00: Like uh taking a girl named Rita and then giving her a name that is sounds a little bit more upper class, like Georgiana.
• 24:00
  SPEAKER_00: I would love to know more about what happened exactly here.
• 24:04
  SPEAKER_00: Spent a lot of time researching, and this is the information I was basically able to gather is so they get married shortly before the DuPont merger.
• 24:16
  SPEAKER_00: After the DuPont merger, they get divorced.
• 24:19
  SPEAKER_00: This I think is pretty easy to read.
• 24:22
  SPEAKER_00: The DuPonts are a famously conservative family.
• 24:26
  SPEAKER_00: They would want a married man on their board.
• 24:32
  SPEAKER_00: But where it gets a little bit more confusing to me is that after they get divorced, she becomes pregnant shortly after with the older of the two daughters, Sarah.
• 24:46
  SPEAKER_00: And then, like, three years later, like two and a half years later, becomes pregnant with Claire.
• 24:54
  SPEAKER_00: I don't know exactly how to read this because I don't know why he would continue exactly to be sleeping with this woman who was his ex-wife, given all of the risk inherent in that.
• 25:10
  SPEAKER_00: I think there's a couple of different factors here.
• 25:14
  SPEAKER_00: I think first of all, Edgar Sr.
• 25:15
  SPEAKER_00: was known for being pretty reckless or spontaneous in his private life, so it's not totally out of the question.
• 25:22
  SPEAKER_00: But also, I don't know exactly how tied into Adnan Koshogi this woman was.
• 25:28
  SPEAKER_00: I don't know how engaged in spy craft she was.
• 25:33
  SPEAKER_00: I think probably more than we know, certainly, especially given some of the things that will happen later.
• 25:41
  SPEAKER_00: But she ends up having Claire about three years after their divorce.
• 25:51
  SPEAKER_00: And then they get remarried in 1983.
• 25:56
  SPEAKER_00: They stay married for about a year, and then they get another divorce.
• 26:01
  SPEAKER_00: And I think this speaks pretty strongly to the idea that these children were born in some sort of spycraft-related entanglement or something.
• 26:12
  SPEAKER_00: Because the only reason you would get remarried after getting divorced as well is to make sure that these two girls ended up in the family trust, the CEMP trust I was mentioning before, because if they were not his legitimate children, if he did not get remarried, they would not have that.
• 26:33
  SPEAKER_00: So the only reason I imagine him giving such an incredible windfall to his ex-wife and two illegitimate children is because somebody was pulling the strings or there was something being held over his head.
• 26:49
  SPEAKER_00: And then, too, I think there's a lot to imply that they were that their mom was definitely involved in spy craft in that she moves to London when they're really small girls.
• 27:06
  SPEAKER_00: She moves to Kenya after that.
• 27:08
  SPEAKER_00: Like, I don't know, these sorts of weird international movements.
• 27:12
  SPEAKER_00: They live on like a plantation in Kenya for a long time.
• 27:16
  SPEAKER_00: They go to a special school.
• 27:18
  SPEAKER_00: And then around the time they hit their 20s, a little bit after they become adults, that's when they move to America and they really insert themselves into this family.
• 27:29
  SPEAKER_00: And I want to be clear as well, like this trust is massive.
• 27:34
  SPEAKER_00: I mean, you're talking like two to five million dollars a month per child.
• 27:40
  SPEAKER_00: And I think I kind of said or implied earlier that the fight between the Bromfman sisters and their dad, Edgar Sr.
• 27:51
  SPEAKER_00: struck me as K-fabe.
• 27:53
  SPEAKER_00: I think it's probably a little bit more complicated than that after doing some more research.
• 27:58
  SPEAKER_00: Like, I really think a key to a lot of this is this ironclad trust where he basically couldn't divest them from this.
• 28:09
  SPEAKER_00: And like basically about the only thing he could have done is to take them to court.
• 28:14
  SPEAKER_00: And if he were to take them to court, I mean at that point you're opening yourself up to discovery.
• 28:21
  SPEAKER_00: And I can't imagine, you know, what sort of skeletons could be dragged out of that closet, especially given their mom and her ties, and like it makes a lot of sense to me to a degree, especially because they they would do some weird stuff, like they would install a keylogger on their dad's computer at some point, which when I was looking at it totally as cafe was always really hard for me to read because it seemed like a genuine move, a shot across the bow or whatever.
• 28:54
  SPEAKER_00: And the more the more I have looked into this, I think that originally whatever they were doing in Nexium, their dad was totally fine with and even supported.
• 29:06
  SPEAKER_00: But at this, at some point around when he was speaking publicly against it in like 2003, some sort of interfamily dispute had happened.
• 29:18
  SPEAKER_00: One of the things that I think might be a genesis for some of that is so their dad used this like Masad firm, this very high-level Masad firm called Interfour, that was a basically like a mercenary intelligence company run by a guy who claimed to be one of the Massad assassins that killed people from Hamas after the 1972 Olympic massacre, and they like started paying this firm more money than their dad was paying them in order to get information on their dad.
• 29:58
  SPEAKER_00: And I just mean when you're dealing with this amount of money, like there is so much chicanery going on, you know.
• 30:04
  SPEAKER_00: I I've been really interested in trying to understand what exactly happened with the$150 million that most Nexium documentaries will tell you Keith Rainer scammed them out of.
• 30:20
  SPEAKER_00: And I think these financial shenanigans are so important to understand because, first of all, I mean, so much of our world runs on them, and the vast majority of people don't understand them at all.
• 30:33
  SPEAKER_00: I even wish I understood them better.
• 30:35
  SPEAKER_00: But also, it is kind of a really strong moment where the entire narrative you're told about Nexium really just flatly falls apart.
• 30:48
  SPEAKER_00: Like, first of all, they lost about$150 million, supposedly altogether.
• 30:53
  SPEAKER_00: And I've questioned that since day one, since I've started doing this, because I wasn't born yesterday.
• 31:00
  SPEAKER_00: And when you tell me that this just dumpy moron managed to scam these billionaire heiresses out of all of this money, I am immediately going to question it, even though basically every journalist or documentarian that has covered this, uh, every prosecutor that tried this didn't seem at all interested in looking at this very obvious angle.
• 31:29
  SPEAKER_00: But it gets divided a couple of different ways as supposedly what happened to this money.
• 31:35
  SPEAKER_00: And I believe you can break just about all of this down in a way that makes a lot more sense in the official story.
• 31:42
  SPEAKER_00: Like, first of all, they will claim that Keith Rainier told them he was a genius and that he had discovered some way to manipulate the stock market, and through that lost like$66 million of their family's money.
• 32:00
  SPEAKER_00: And I think one of the most obvious ways you can tell this is complete bullshit is that if you figure like a good trader will lose like 30% of the time.
• 32:15
  SPEAKER_00: An average trader, you know, just flip a coin and pick a trade.
• 32:19
  SPEAKER_00: You should be at about 50% of the time.
• 32:23
  SPEAKER_00: Basically, every investment they made lost always 100% of the time.
• 32:30
  SPEAKER_00: And this whole thing really isn't hard to figure out, especially when you just understand a couple of very basic financial maneuvers that extremely wealthy people will do in order to wash money.
• 32:46
  SPEAKER_00: And you understand that they were literally their broker was a company called Refco that would get in trouble for doing these exact things, and doing these exact things to a degree where it was blatantly illegal, because you can really basically kind of do these things, and it's totally fine.
• 33:06
  SPEAKER_00: Like one of them would be if a person wants to move money from one place to another, you have trader A pick some sort of market, in this case, like they they did a lot of light fruit oil and silver markets, and you have them buy a like let's say short a bunch of silver futures, like 18 months from now.
• 33:31
  SPEAKER_00: So there's not a lot of activity there, like most of the financial activity that's going to happen is going to not be in futures anyway.
• 33:38
  SPEAKER_00: Certainly futures that far ahead, definitely not.
• 33:41
  SPEAKER_00: Like, and like let's just say as an example, you have Trader A go in and buy$20 million worth of shorts on silver futures, so they're betting that the price of silver will go down, and then you have somebody else 18 months in the future, and then you have somebody else buy silver future stocks 18 months in the future, so saying that they are betting on the price of silver going up, and then if you are in a bull market, as soon as that alters 1% in favor of a buyer, you have the person who bought the money now able to actually kind of ransack the account of the sellers unless they do things to prevent it, because now the broker wants more money as a security deposit.
• 34:41
  SPEAKER_00: And if the broker does not receive that extra money for that security deposit at that point, they're going to try to give the broker everything they can out of your account.
• 34:52
  SPEAKER_00: You can actually simplify this even more by creating this thing called a stop loss, which basically says, okay, so in this silver future, I've bought 18 months in the future, goes up five cents in this case because you bought shorts.
• 35:07
  SPEAKER_00: Uh, trader A bought shorts.
• 35:08
  SPEAKER_00: So if you go once it's at$15 now at$1505, I want you to just sell everything so I don't lose any more money.
• 35:21
  SPEAKER_00: You know, there are legitimate, non-illegal reasons a person could set up a stop loss, but it's also a very easy way to just kind of push a ton of money over to this other buyer.
• 35:33
  SPEAKER_00: You can be fairly certain when you're doing this sort of financial transaction.
• 35:38
  SPEAKER_00: One, because it can take place over the course of a couple of seconds, and two, because these are kind of empty rooms.
• 35:45
  SPEAKER_00: These aren't places where most people are trading.
• 35:49
  SPEAKER_00: And you can actually simplify this even further by actually having the person on the other end, say if you have a stop loss at$15.05 and you're at 15, if they buy enough stocks, they can push that stock up to$15.05, at which point, you know, all of your money just goes to them.
• 36:10
  SPEAKER_00: I don't know.
• 36:11
  SPEAKER_00: I hope I explained that all right.
• 36:12
  SPEAKER_00: I hope it makes some sense to you.
• 36:16
  SPEAKER_00: Basically, the long and the short of it is, I believe, based on the fact that Nexium lost about a hundred percent of the time, the fact that they were using this broker called Refco that would later on get in trouble for basically facilitating these financial maneuvers I was talking about by holding money on both ends of the trade so that they could throw them up at the same time and within a matter of seconds transfer the money from one place to another, literally just hooking up buyers and sellers.
• 36:51
  SPEAKER_00: And that just makes a whole hell of a lot more sense to me than that they just met some doofy jackass who claimed that it he could hack the stock market and then lost every time.
• 37:07
  SPEAKER_00: So they're basically moving money out of this trust, the$66 million they claim they lost, into probably like shell companies that are buying on the other end, would be my guess, which very well could have contributed to the family rift, by the way.
• 37:24
  SPEAKER_00: Because I do imagine, unless their dad was in on it, he is not going to be thrilled about this.
• 37:31
  SPEAKER_00: And then also at the same time, too, by the way, if you do this, you get to claim a$66 million loss on your taxes, which then gives you all sorts of income tax benefits, so you also get to work the system that way.
• 37:47
  SPEAKER_00: And then, so what I think happened with a lot of the rest of the money is you have about$10 million that is spent on that company Interfor that I mentioned, and they would basically be a the intelligence arm of Nexium, like they were running all sorts of blackmail operations, you know, we can get a little bit more into that in the future as well, and um doing really aggressive lawsuits and stuff like that, and so you know, you're paying them for their services, but then you're also buying a bunch of like real estate or like an$11 million private jet and buying them through shell companies so that they're not attached to Nexium.
• 38:34
  SPEAKER_00: This is one of the funniest things to me, by the way, about the story we're told about Nexium and Keith Rinary is this idea that he was this man owned nothing.
• 38:47
  SPEAKER_00: That like literally the Bronfman's or the Bronfman's shell companies had their names on most of this stuff, and the stuff that they didn't have it on, other wealthy people in this group did.
• 39:02
  SPEAKER_00: And you watch his documentaries and they'll be like, Heath Rainier was such a mastermind, he knew not to have his name on anything.
• 39:10
  SPEAKER_00: And it's like, no motherfucker, like he didn't have anything.
• 39:14
  SPEAKER_00: Not having your name on something means you don't have it.
• 39:17
  SPEAKER_00: And so anyway, they would they would they would buy a ton of property through these shell companies or a jet, and then they would lease it to Nexium.
• 39:26
  SPEAKER_00: So, you know, they're having their shell company lease something they own back to them, which then allows them to transfer more money from this trust outwards into you know whatever they want that is completely outside of the rest of the family's purview.
• 39:46
  SPEAKER_00: I think one of the reasons they might have decided to burn down Nexium when they did was that their father Edgar Sr.
• 39:53
  SPEAKER_00: died in 2013.
• 39:56
  SPEAKER_00: And this did change some of the dynamics as far as the trust goes, because when the trust is being reconfigured since the person who owned it is now dead, it opens up new legal options to be able to cut somebody out or to attack them.
• 40:16
  SPEAKER_00: Like I said, this trust was still built really airtight, but there was ways to do it.
• 40:22
  SPEAKER_00: You could say declare your sisters mentally unfit because they are in a cult, and you know, you'd have to go through a legal battle and stuff, but if you could manage to win that legal battle, that would really limit discovery in a way where it would have been much more open if it was Edgar Sr.
• 40:44
  SPEAKER_00: And you know, it's actually possible to cut them out of it, like it's a moment where their financial future is less certain than it was prior.
• 40:52
  SPEAKER_00: All right, and I guess that is where I am going to cut it off for today because I have still got so much to cover.
• 41:05
  SPEAKER_00: Just it ran longer than I expected, and there's still just so much to cover, you guys.
• 41:12
  SPEAKER_00: So we're gonna split this into a two-part episode.
• 41:17
  SPEAKER_00: Please, if you haven't already, review me, give me five stars.
• 41:22
  SPEAKER_00: I really appreciate everybody's encouragement and support.
• 41:28
  SPEAKER_00: And I am hoping to start a Patreon pretty soon for anybody who would like to help give me a little bit of breathing room to do this work.
• 41:39
  SPEAKER_00: I'm also thinking about some stuff to put on there that you know would be a nice reward for doing that.
• 41:48
  SPEAKER_00: And, you know, we'll go over sources and stuff next week once I finish this episode.
• 41:53
  SPEAKER_00: But thank you guys.
• 41:54
  SPEAKER_00: Have a have a good day.
• 41:55
  SPEAKER_00: See you next week.