She was reportedly apprehended in NY by the Federal Bureau of Investigation, following the arrest of NXIVM leader Keith Raniere in March.
Authorities alleged earlier this year that the women - who were referred to as "slaves" by Raniere - were branded with his and Mack's initials in their pelvic region and forced into sexual intercourse.
'As alleged in the complaint, Keith Raniere created a secret society of women whom he had sex with and branded with his initials, coercing them with the threat of releasing their highly personal information and taking their assets, ' United States attorney Richard P. Donoghue said.
Smallville gave Mack her big break during its run from 2001 to 2011, playing journalist Chloe Sullivan. "I'm told that a lot of people were counting on Keith's arrest as a way to get Allison out", the insider tells HollywoodLife.com EXCLUSIVELY. "The victims were then exploited, both sexually and for their labor, to the defendants' benefit", said federal prosecutor Richard P. Donoghue. She's believed to have been the second-highest ranking member, beneath Raniere.
Founded in 1998, NXIVM promoted Raniere's teachings as a kind of mystical, executive coaching created to help people get the most out of life. "Slaves were expected to recruit slaves of their own (thus becoming masters themselves), who in turn owed service not only to their own masters but also to masters above them in the DOS pyramid".
Mack, 35, is alleged by prosecutors to have recruited slaves for pay, forcing the women to have sex with Raniere, and using explicit photos and damaging information to ensure their compliance.
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The judge deemed her a flight risk and denied her bail.
Investigators say Mr Raniere had a rotating group of 15 to 20 sexual partners, who were not allowed to discuss their relationship with him or have one with anyone else.
According to federal prosecutors, Mack has been indicted on charges related to sex trafficking and forced labour.
The secret group within NXIVM was called "DOS", or known as "Lord/Master of the Obedient Female Companions", within which Raniere was known as "The Vanguard".
Mack's fellow "Smallville" co star Kristin Kreuk was also accused of aiding sponsor girls as sex slaves into Nxivm.
In a statement attributed to Raniere on NXIVM's website, he proclaimed his innocence and said he believed the justice system would prevail.
Mack was with the 57-year-old Raniere when he was arrested near Puerto Vallarta, according to the Times-Union.