A multimillionaire heiress to the Seagram liquor empire has been arrested and charged with running a criminal enterprise, as part of proceedings against members of the Nxivm “sex cult”.

The group garnered headlines for an initiation ritual that reportedly included branding founder Keith Raniere's initials on women, attempts to recruit celebrities, and accusations by prosecutors that members were turned into sex slaves for Mr Raniere.

Clare Bronfman, 39, a British-educated aspiring Olympic show jumper, was ordered by a judge in Brooklyn to be held under house arrest, on a $100 million bail.

Her lawyer, Susan Necheles, entered a not guilty plea on her behalf.

"Clare Bronfman did nothing wrong. Nxivm was not a criminal enterprise but instead was an organization that helped thousands of people," she said.

"The charges against Clare are the result of government overreaching and charging an individual with crimes just because the government disagrees with some beliefs taught by Nxivm and held by Clare.

“This is not how things should be done in America.

“We are confident that Clare will be exonerated.”