Two women who were part of an alleged pyramid scheme that involved sex trafficking and racketeering each pleaded guilty to related charges Friday in a New York federal court.
Clare Bronfman, an heiress to the Seagram's liquor fortune, pleaded guilty to conspiracy to conceal and harbor people who were not in the United States legally for financial gain and fraudulent use of identification.
Kathy Russell pleaded guilty to one charge of visa fraud.
Bronfman and Russell were indicted in March on racketeering and racketeering conspiracy charges as part of the cult-like organization known as Nxivm, founded by Keith Raniere, who also was indicted and is now in federal custody. He faces sex trafficking and forced labor charges.
Bronfman was a member of the Nxivm executive board, according to a US Justice Department news release, and faces between 21 and 27 months in prison. Russell is Nxivm's former bookkeeper and faces between six and 12 months in prison.
Bronfman and Raniere were accused of committing identity theft by allegedly stealing the email user names and passwords of "perceived enemies" to monitor their electronic communications, according to a US Justice Department news release.
Russell and Raniere, the Justice Department said, tried to smuggle a person into the US through Canada after the person was denied entry. The Justice Department says Russell gave the person an identification card with the last name and birthday of a dead woman.
Bronfman, who will be sentenced July 25, tearfully read a statement in court during her plea hearing.
"Your honor, I was afforded a great gift by my grandfather and father. With the gift comes immense privilege, and more importantly, tremendous responsibility," Bronfman said. "It does not come with an ability to break the law, it comes with a greater responsibility to uphold it. I failed to uphold the following laws set forth by this country, and for that I am truly remorseful."
Russell, who will be sentenced July 31, said in court that she knowingly provided visa documents with false information in order to bring a woman into the US for work.
"I know what I did was wrong and I am very sorry for the trouble that I've caused," Russell said, tearfully.
Five Nxivm members were indicted and charged last year for crimes that included identity theft, extortion, forced labor, sex trafficking, money laundering, wire fraud and obstruction of justice. Bronfman, Russell and actress Allison Mack were among the five indicted and charged last year. (CNN)