THE FRANKLIN COVER UP,CHILD ABUSE,SATANISM &
MURDER IN NEBRASKA
BY JOHN W. DECAMP
CHAPTER 7
MURDER IN NEBRASKA
BY JOHN W. DECAMP
CHAPTER 7
THE FRANKLIN
COMMITTEE
On Friday, November 4, 1988, four days before George Bush
was elected President of the United States, agents of the Federal
Bureau of Investigation, the Internal Revenue Service, and the
National Credit Union Administration (N.C.U.A) swooped down
on the north Omaha headquarters and branches of the Franklin
Community Federal Credit Union and its affiliate, the Consumer
Services Organization, and shut their doors.
It was a case of swindles on a vast scale.
At the time of the raid, the Franklin Credit Union listed $2
million in deposits, of which $1.2 million was in certificates
of deposit. Yet within a week of the doors being padlocked,
claims were filed for $15 million in CD's. Ultimately, close
to $40 million was determined to be missing from this credit
union that claimed to have a scant $2.6 million in total assets.
The obligations were listed on a second, secret set of books.
• • •
In Nebraska's unicameral Legislature, a handful of senators
moved to begin a probe into what happened to the Franklin
money. The two main initiators of this legislative investigation,
the one that would persist when law enforcement balked, were
Senator Ernie Chambers, Democrat of north Omaha, and Senator
Loran Schmit, Republican of Bellwood.
Senator Chambers represented the district where the Franklin
Credit Union was founded in 1968, by community activists,
with the proclaimed goal of making credit available for business and individuals in the African-American community of
north Omaha. (It was by qualifying as a "low income credit
union," that Franklin could sell certificates of deposit to nonmembers,
the means by which it swindled millions.) Larry
King became its manager in 1970.
Chambers was in receipt of numerous complaints against
King. People talked about his high spending ways, and about
the teen aged boys who got in and out of limousines with
King. During 1988, Chambers received some of the Foster
Care Review Board reports, that abused children had named
Larry King.
Senator Schmit, as a Republican, knew of suspicious behavior
by King out of town. In early years, Larry King was a
Democratic Party activist, and headed Black Democrats for
McGovern in 1972, but after he shifted registration in 1981,
King made his name in the GOP.
As Schmit's friend and personal attorney, I shared with him
my own recollections about how I had noticed the two faces
of Larry King, which I later summarized in writing: "I had
personally been a delegate to the Republican National Convention
in 1984 and 1988 and been a witness at the massive
spending and luxury at the Larry King parties in both Dallas
and New Orleans, and as chairman of the legislative Banking
Committee had observed with a jaundiced eye the Franklin
operation, which no information could be obtained on because
it was a Federal Institution."
At these two conventions, I attended the two biggest parties
ever sponsored by Larry King. It was the first of these that
brought King to my attention.
The year was 1984. I was attending the Republican National
Convention in Dallas, Texas, having been elected as a delegate
pledged to support Ronald Reagan. Nebraska was seated in
the front row in the convention hall. I had the first seat in the
row. The feeling of excitement and power was awesome.
The man sitting next to me, Senator Rex Haberman of Imperial,
Nebraska, informed me that the portly black man standing
at the podium as the convention was set to begin, was from Nebraska and was the fastest rising black star in the Republican
Party.
"Who the blazes is he?" I asked, "And how come I haven't
heard anything about him?"
"Larry King," Senator Haberman told me, "and you and I are attending his party tonight."
"I had planned on going to a good movie," I told Haberman.
"Can't," Haberman explained. "Not if you are going to be
a good Republican. You are from Nebraska and this is a party
being put on by a Nebraskan to honor another black Nebraskan,
DuBois Gilliam, who is going to be getting one of the highest
appointments any black person has ever gotten in government.
You've got to be there."
So, we went. I drove Rex out to the party, which was being
held at Southfork Ranch, famous as the setting for the TV
show "Dallas."
It was the most impressive party I have ever witnessed. The
attendance by top politicians was remarkable; names and faces
you only hear or see on television were there in number. At
the center of the excitement was Larry King. Draped over him
like a blanket throughout the evening was a heavyset woman,
who I learned was Maureen Reagan, the president's daughter.
From what I saw, this party had to have cost far more than
the one or two hundred thousand dollars I have heard as an
estimate. At a public meeting in 1990, I recalled my thinking
at the time: "I got to wondering: Here's this little credit union,
and here's Larry King, obviously in the highest reaches of the
Republican Party.... And I just wondered, how does he do
this supposedly on a salary of $16 thousand a year?"
Such conspicuous consumption as I had witnessed, earned
Larry King the tag "flamboyant" in just about any mention of
his name. The NeVA's civil suit against King, filed November
14, 1988 in the wake of the raid, put some price tags on his
life style. It itemized $4 million of King's personal expenditures,
paid out of credit union funds during the previous thirteen
months, including: $1 million in American Express bills,
$148,000 to Old Market Limousine, $70,000 to Floral Concepts, $61,000 to Master card, $39,000 to Citibank, $37,000 to
himself, $27,000 to Omaha Jewelry, and so on.
Why was I concerned? Because, from my experience as chairman of the Banking, Commerce, and Insurance Committee of the Legislature, I knew that with all the regulatory controls existing for a federally insured institution, it was impossible for such a theft to occur without cooperation by higher up officials. Larry King could only have accomplished this massive theft with the help or cooperation of regulatory officials or politicians at the highest levels. That meant that institutions of government must have been compromised.
Senator Schmit had his own reasons for thinking that a legislative probe of the Franklin collapse was in order. He had heard from friends of his in the black community, that Larry King spent money like a drunken sailor, but was not making any loans in the community.
When I discussed a possible investigation with Schmit, I had no idea that anything other than theft, and the possible protection of illegal financial transactions, would be involved. As the investigation was launched, no one, except possibly Senator Ernie Chambers, knew where it might lead.
After the first session, on December 12, 1988, Senator Chambers made a dramatic announcement about the probe. The investigation would go into not only financial wrongdoing, he said, but also the physical and sexual abuse of children by persons connected with Franklin. People holding official jobs might be affected, added Senator Schmit.
At the three and a half hour Executive Board hearing on December 19, 1988, Carol Stitt, Dennis Carlson, and Burrell Williams of the Foster Care Review Board summarized the abuse complaints centered around Franklin's top officer. They presented their files on the Webb foster home and on Loretta Smith.
CARLSON: The nature of these allegations are something that is going to shock the Committee. They deal with cult activities, they deal with sacrifices of small children, they deal with sexual abuse, and there's a correlation between these two different reports. We have, the Boys' Town report ... prepared by a worker from Boys' Town named Julie Walters, ... (which) contains the allegations of the children that were in the Webb foster home, Nelly primarily. Years later, well, two years later, we have Loretta Smith in.Richard Young Hospital who's making allegations against Larry King and as far as we know there is no relationship between Nelly and Loretta Smith. . .. Both reports talk about the Omaha Girls Club, both reports mention a specific individual who is the superintendent of schools....
SENATOR REMMERS: The question that came into mind, it's been in my mind since you've been testifying and I think you've answered part of it just now, is you're talking about about these abuses from children from Boys' Town and Girls' Club and so forth, now is there a common thread that goes over here to the Credit Union deal that we are investigating? In other words to the Franklin Credit Union? Is there a common thread there that kind of leads to that?
CAROL STITT: Well, the common thread is Larry King.
SENATOR REMMERS: Yes, that's what I mean. It all goes back to him? OK.
CAROL STITT: Yes, he seems to be more the organizer, or the high-class pimp, I mean if that helps fit this together.
Stitt also clarified what she had written in her June 1988 letter to Attorney General Spire, about a Kansas City connection of Larry King. She testified that she had cross-checked with the Kansas City detective, who reportedly inquired of Kirstin Hallberg about when Nebraska was going to crack down on King. The officer, said Stitt, "confirmed that Larry King had been there, had contributed money to a group home and when he left, three boys came forward and said that they had been abused by him while he was there."
The Executive Board also received from the F.C.R.B the handwritten report by Julie Walters, on her interview with the teen aged victims during 1986. In the December 21, 1988 Omaha World-Herald, reporter James Allen Flanery recounted a telephone interview with Walters at her home in another state, in which she told him how their testimony had seemed at first "too bizarre to be true." But the more experience she gained with troubled children, Walters added, "working in probation, I'm more sure than ever that there is more truth than not in their accounts. The conclusion I reached was the kids I spoke with were not lying."
What the senators heard at the closed December 19, 1988 meeting shook them to the bone. "The information brought tears to my eyes," Schmit said, according to the Lincoln Journal. "I do not cry easily and I was not the only person that was moved." Chambers echoed the witnesses' outrage about delays: "With this type of information it is inexcusable that action had not been taken of an investigative nature. People were not contacted that should have been. Leads were not followed up that should have been followed up. My feeling is that the whole thing is being sat upon and nothing was done."
The question of a cover-up of Franklin-linked crimes came up at the outset, in this way. Omaha Police Chief Wadman and state Attorney General Spire offered a lame protest. "Every step that should have been taken was taken," Wadman told the Journal. Spire said, "We did receive some sensitive information in July. My office acted promptly and professionally and nothing was sat on. I am confident that law enforcement-both federal and state-is doing its job in the situation.... "
The Legislature's Franklin committee hired its first investigator, former Lincoln policeman Jerry Lowe, in February 1989. Attorney Kirk Naylor came on as Special Counsel. On February 15, Lowe sent a memo to the committee on the results of his first comprehensive evaluation of the case, including its handling by law enforcement. Lowe wrote:
This matter is indeed a complex and complicated one, commencing with the closing of the Franklin Credit Union ... and mushrooming into a situation where additional allegations (other than the financial improprieties) have arisen, including influence peddling, child abuse and neglect, child sexual abuse, pornography, substance abuse, homicide, and inaction and possibly malfeasance on the part of law enforcement agencies, public agencies, and public officials for events dating several years back. More importantly, there seems to be a growing public perception that many of the affected agencies and/or officials are participating in a cover up.... The task which the Committee has undertaken will not be an easy one....
The allegations regarding the exploitation of children are indeed disturbing. What appears to be documented cases of child abuse and sexual abuse dating back several years with no enforcement action being taken by the appropriate agencies is on its face, mind boggling.
In this and other early reports, Lowe made clear that every aspect of the Franklin case was politically hot. Larry King had become wealthy and influential thanks to quite a number of "big people," he commented. Moreover, Lowe reported, there were indications that King was involved in guns and money transfers into Nicaragua, of involvement by the CIA, and possibly "a White House connection." There appeared to be "some type of connection between the money missing [from Franklin], the crisis in the Savings and Loans, and the funneling of money to Haiti and Nicaragua."
Lowe wrote that there was evidence Omaha Police Chief Robert Wadman had stayed at Larry King's residence in Washington, D.C.
Lowe retraced the leads contained in the documents assembled by the F.C.R.B. In March, he interviewed Loretta Smith three times. In April, he talked with Cornelia (Nelly) Patterson, who had taken back her original name after she escaped from custody of the Webb's.
Testifying on June 22, 1989, Attorney General Spire appeared still unchastened. Just as his office had dallied in the face of Carol Stitt's plea for action on complaints against Larry King the year before, Spire now said about Franklin-linked child abuse, that "based on conclusions and reports of the FBI, the Omaha Police, and the Nebraska State Patrol, all three of those have concluded that the reports do not have substance."
Someone was working at cross-purposes outside the hearing room, as well.
While the Legislature's Franklin committee was getting started at the end of 1988, the N.C.V.A selected a firm called Financial Advisory Group, of Council Bluffs, Iowa, to make its own determination about what had happened to Franklin's missing millions. FAG was a partnership formed by John Queen and Robert Kirchner, whose earlier appointments included the one they got from Governor Kerrey-state regulators to oversee the liquidation of the Commonwealth Savings and Loan. In their 1989-1990 audit of Franklin Credit Union, Queen and Kirchner would conclude that Larry King spent nearly all of it on flowers, limousines, gold watches, and his generally extravagant lifestyle.
Even as he proceeded with the audit of Franklin, Queen was serving during 1990 as deputy receiver for Commonwealth, overseeing the liquidation of the bank's remaining assets and the disbursement of the proceeds. On August 14, his chief assistant in the receivership, Kent Johnson, was arrested by the FBI for stealing over a million dollars in Commonwealth funds. Although Queen's co-signature was on every check Johnson wrote to steal the money, Queen claimed that his name had been forged. His career, in any case, was tightly intertwined with Johnson's. Johnson worked for him in the Commonwealth receivership, on the Franklin audit, and at an Omaha corporation he owned, Phoenix Sign Corp. This was a venture Queen launched by buying up the assets of Globe Neon, a bankrupt firm. One of Queen's fellow holders of a $50,000 share of Globe Neon before it folded, was none other than Larry King!
Queen and Kirchner enjoyed the sympathy of investigator Jerry Lowe, who wrote in his February 15, 1989 case summary for the Franklin committee:
A private consulting firm headed by Omaha residents John Queen and Bob Kirchner, both formerly associated with the receiver for Commonwealth Savings in Lincoln, Nebraska, was retained by the National Credit Union Association (NCUA), in early 1989 and given the responsibility to trace all the funds flowing into and out of the Franklin Credit Union. . .. I am familiar with both Mr. Queen and Mr. Kirchner due to my involvement as a Lincoln Police Department investigator in the Commonwealth matter. ... I can personally attest to the thoroughness and capabilities of Mr. Queen and Mr. Kirchner and the people assisting them and believe an association with them would save us an enormous amount of time in following the money.
I have been Senator Loran Schmit's personal attorney for a number of years. When we were both senators, we frequently worked together on major issues. At other times, such as when we disagreed on the issue of telephone deregulation, we led opposite sides, and fought each other tooth and nail.
During the early months of the legislative investigation of Franklin, I personally had serious doubts as to the validity of
what was being alleged. I provided a minimum of legal advice to Senator Schmit during this period, but he did insist that I be available to provide him such advice.
Schmit had the experience of a previous investigation, involving drug-related matters and the State Patrol, which ended up with him and other senators, including myself, being sued by some of the individuals investigated. He wanted to make sure that he made no error that would cause any legal liability for him. Even though we had won that earlier suit against us, Senator Schmit wanted to exercise all caution, to protect himself from lawsuits. Therefore, like many other state and national politicians, he quite properly had private legal counsel-me.
In the spring of 1989, after the Franklin committee had been conducting investigations for some time, Senator Schmit sought my legal advice. He wanted to know the legal liability involved, if he supported a planned report of the committee, which was to suggest that there was child abuse committed by prominent individuals-not to be named-which had not been properly investigated by agencies of government.
I asked for no names and he provided no names of the individuals he was talking about. In point of fact, there were enough rumors floating in the legislative corridors and on the streets of Omaha, that at least a dozen prominent persons could have been the subject of these accusations.
I gave him the same advice then, that I would give now: "Accusations of child abuse are the worst accusations you can make against an individual. That is because, no matter what the truth of the matter, once the accusation is made, it will never be able to be rubbed completely off, even if the individual accused is as innocent and pure as can be. Therefore, before you sign your name to anything that suggests that there is serious child abuse or before you suggest that an agency of government has failed in its duty to find or investigate child abuse, make sure you have the smoking gun that establishes that is what actually occurred. Not just for your legal protection, but because that is the right thing to do. To falsely accuse of child abuse is a terrible thing. To cover up child abuse, is worse than falsely accusing."
I had my own personal experience of a false accusation of child abuse, which still bums in my soul. It was also a hideous example of the use of political office to intimidate, silence or destroy political enemies.
The year was 1984, early January. I had announced my intention to run for the United States Senate. As chairman of the Legislature's Banking Committee, I was actively seeking to investigate the collapse of Commonwealth Savings, which had just occurred. In an Associated Press listing of the ten most powerful people in Nebraska, as ranked by media editors and publishers, I was number 5, behind the governor, U.S. Senator J.J. Exon, Omaha World-Herald publisher Harold Andersen, and University of Nebraska President Ronald Roskens. Polls showed me as the leading candidate for the Republican senatorial nomination.
Then, I received a message from Republican Party leaders. It was simple: "GOP strategists at the highest levels believe this is the year the Republicans can beat J.J. Exon. Opinion poll analysis shows that such a victory can only come, if the candidate is a woman and has no political 'baggage.' (Remember, 1984 was the year of Democrat Geraldine Ferraro's candidacy for U.S. Vice President, the 'Year of the Woman' in politics.) Republican leaders are fearful that you, John DeCamp, will be able to win the primary, but because of 'baggage' and controversiality, you will not beat Exon in November. Therefore, Republican leaders ask you to withdraw from the primary. If you do not drop out voluntarily, you will have to be stopped some other way. And stopped you will be, because this race means so much to Republican leadership, at the highest levels in Washington."
I did not listen. I continued to campaign for the Senate seat. Shortly thereafter, a tenant in one of my apartments, who was delinquent on her rent, lodged an anonymous complaint to the Nebraska Department of Social Services. She charged that I and my wife had "abused" my young daughter when she was five years old. A picture in a family photo album, showing my daughter in a pose like the Coppertone baby ads, was the basis for the complaint.
Two investigations conducted immediately, one by the D.S.S and one by the Lincoln Police, found there was no child abuse and so reported.
But a County Attorney, Mike Heavican, took matters into his own hands. Heavican was on the Republican search committee for a senatorial candidate, which ultimately picked a woman with no "baggage," and she lost to Exon. He also was someone whose name had come up as my Senate Banking Committee attempted to start probing the Commonwealth and State Security matters, as someone who may have granted illegal tax favors to involved parties.
Heavican filed a petition, alleging that I and my wife had abused our daughter in the way we were educating and raising her. It was a civil, not a criminal, filing, but I am sure it was designed to gain statewide publicity.
Heavican's action also exemplified how a public position can be abused. It comes as a shock to most Americans, that the lowliest county attorney has absolute immunity when he files complaints or charges against somebody, even if he does so knowing them to be false. His automatic immunity is supposed to protect the prosecutor, as an institution of government, from being deterred from effective action by the specter of future lawsuits. The abuse of this institutional privilege can be terribly destructive.
Months of investigation resulted in a legal opinion from Judge W.W. Nuernberger, that there was no child abuse. Nuernberger concluded that if Mr. and Mrs. John DeCamp were guilty of child abuse, then so were a lot of families and so was the late President Kennedy, and perhaps every family in Nebraska would have to destroy its photo albums, if I were considered guilty of anything.
While the investigation was under way, media coverage continued to smear my name with the charges. I maintained that the phantom child abuse was concocted by Heavican, using the County Attorney's office, for the political purposes of knocking me out of the Senate race and stopping my Commonwealth/State Security investigation. Six years after these horrible events, my suspicions were confirmed.
On March 17, 1990, the Kansas City Star reported on the DeCamp child abuse allegation: ...
Roland Luedtke, a former lieutenant governor and the mayor of Lincoln from 1983 to 1987, launched his own review of the charges. "The report that came back to me was that [DeCamp] was pure as the driven snow," Luedtke said, but, he added, whoever may have had it in their mind to get rid of DeCamp "accomplished their purpose."
My 1984 ordeal came to mind in the spring of 1989, as I insisted to Senator Schmit that he exercise caution in the Franklin case.
In July 1989, a controversy broke out on the Franklin committee, over Schmit's amendment and the course of the investigation. Some members maintained that Senator Schmit was not doing enough to follow up the child abuse. Schmit rejoined that the information gathered thus far by Lowe, while useful, was mostly second-hand, and that the committee should follow the advice he had been given by a friend in law enforcement: "Follow the money trail." There is almost no important crime that can be committed, said Schmit, echoing his friend's advice, without spending money, and spending money leaves a paper trail. It should be possible to move from hearsay to court admissible evidence such as checks, credit card receipts, and flight manifests.
In a review of his work for the committee, Caradori recalled his first impressions:
From the onset it was apparent that I was up against a barrier regarding mistrust of the Franklin Legislative Committee. I was told repeatedly that people were afraid to divulge any information, not only because of retribution of the alleged perpetrators, but also because they feared they would be publicly discredited by the Omaha World-Herald. People were also becoming discouraged by the lack of progress made thus far on the investigation and they translated this to mean "cover up."
Initially, the reports which Mr. Lowe had generated were reviewed in detail. It was evident that while there were a large amount of reports generated, that very little of substance had been gained by him regarding firsthand information. It was then decided that, while secondhand information had been valuable in that it presented an idea of the possible scope of abuse going on, that it was more important to locate individuals who had actually been abused and participated in the various activities that comprise this case.
What these victim-witnesses related became the central matter of the Franklin case, but nobody except for a few law enforcement personnel, state senators, and grand jury members has viewed the Caradori tapes. Snippets were aired on television in Omaha. With their contents largely not publicized, the tapes became a target of speculation and denunciation, rumor and doubt.
The interviews are reported here for the first time in considerable detail. The excerpts that follow are from Caradori's written precis of the interviews, which include his notes on discrepancies in the testimony, corroborative details, and ideas for followup investigation.
On October 30, 1989, Gary Caradori and his assistant Karen
Ormiston went to the Women's Reformatory in York, Nebraska,
to interview 21-year-old Alisha Owen, who was incarcerated
there on a bad-check conviction. Caradori had had Owen's name on file for some months, as a potential lead. He
noted in his daily report for October 30:
Ms. Owens [sic] was informed of the purpose of our visit and was asked for her cooperation in the matter. Ms. Owens indicated, after a three-hour interview, that she had been heavily involved with various individuals in Omaha, including former members of the Franklin Credit Union. She indicated that she was also involved with other minors involved in pornography and homosexual acts involving various people in Omaha. Several of the individuals she mentioned were Alan Baer, Harold Andersen, and also former Police Chief Robert Wadman, who had participated in many parties. It should be noted that Alisha also indicated that Mr. Wadman is a pedophile.
Contrary to impressions that the Omaha World-Herald tried to convey, Alisha Owen not only did not seek out Caradori, but she told him only a fraction of the story at that first meeting. As she later described to the legislative Franklin committee, she was extremely reluctant to get involved at all. After Caradori left, she contacted the prison psychiatrist, who directed her to Superintendent Lawrence Wayne. He advised her to tell the truth and to cooperate with the Franklin committee.
Caradori's daily notes for November 4, 1989 record what happened next:
Upon arriving from out-of-state on the above date, this writer received word that Alisha Owens had called this writer in an attempt to reach me regarding a meeting that I had conducted with her previously. Upon receiving this information, arrangements were made to speak with Alisha by telephone.
Alisha went on to state that she did not relate to me all of her experiences during the first time that we had met because she was "unsure" of this writer. She stated that she now wanted to come forward with the information that she had previously withheld. Specifically, she indicated that she was one of the minors involved in flights to other states, and she knew of other minors who were on these flights also.
On November 7, Caradori and Ormiston proceeded to York prison and took a sworn video statement from Alisha. The taping lasted from 11:38 a.m. until 10:00 p.m. In addition to the video record, Caradori made an annotated transcript, which is excerpted here.
After pursuing many leads, on October 30, 1989, this writer contacted Alisha Owens at the Women's Reformatory in York Nebraska. I spoke with Alisha for approximately three hours, during which time she indicated that she had been heavily involved in pornographic and sexual activity with various individuals in Omaha, including former personnel of the Franklin Credit Union. During this discussion with Ms. Owens she initially indicated that homosexual activities also occurred involving Alan Baer, Harold Anderson [sic] and Robert Wadman.
It should be noted that Ms. Owens remitted this information without being directly questioned about these specific individuals.... Following is the information gained from Alisha during the videotaped statement [of Nov.7].
During the course of the statement, Alisha stated that she first became involved with Larry King in August of 1983. Alisha was 14 years old at this time. She indicated that she met Larry King through some boys from Boys' Town, among them Mark Powers*. Mark had invited her to a party that next Friday night.
This first party was held in August of 1983 at a Twin Towers penthouse. Alisha arrived with Troy Boner and Mark Powers at approximately 10:00 p.m. in a car that Troy was driving. Present when they arrived at the party were Larry King, Bob Wadman, Alan Baer, Harold Anderson, and other adults that Alisha did not identify at this time. . .. Alisha estimated that there were approximately six adults and 20 minors. Mark Powers had told Alisha prior to going to the party that there would be marijuana, alcohol, and so much cocaine available at this party that "she would think it's snowing." ... Alisha stated that the party was held at Alfie Allen's apartment in this building....
There was a "professionally made" pornographic tape showing portraying two males, approximately age 17, engaging in homosexual acts.
Alisha observed Larry King and Larry (Last name unknown [Lnuk], black youth) going into one of the bedrooms. She observed later when the black youth emerged from the bedroom that he was tucking in his shirt and fastening his pants. Alisha also observed Alfie Allen going in and out of the bedroom numerous times. She observed a young boy approximately 14 years old sitting on Harold Anderson's lap. She then observed this boy and Harold Anderson going into one of the bedrooms.
Alisha observed Alan Baer using "two lines" of cocaine and smoking marijuana ....
A young boy was sitting on Harold Anderson's lap with his pants undone. He was stroking the child's penis. The name of the child is unknown ....
A third party occurred on the 21st or 22nd of September, 1983, at the same Twin Towers apartment. Alisha had turned 15 on September 18th. Present at this party were Troy Boner, Alan Baer, Robert Wadman, Mark Powers, Larry King, Larry (Lnuk), Danny King, and Harold Anderson.
Harold Anderson was "with" Danny King.
On the above evening, Robert Wadman told Alisha that she was pretty and asked her if she was wearing anything underneath her clothing. He asked her if she was wearing a bra. Sometime around 10:00 to 12:00 p.m., she was sitting on his lap. He indicated to Alisha that he knew she wasn't a virgin and he then felt her breasts. He told her that she had nice breasts. He felt her genitals and unzipped the zipper to the jumpsuit she was wearing. She asked him to stop and he grabbed her wrist very tightly and twisted her wrist.
He then removed her clothing and asked her if she knew what fellatio was. He said that he would show her what it was. He then instructed her to perform oral sex. Robert Wadman's pants and underwear were down. He pinched her on the breasts. She was kneeling on a cushion on the floor and he was stroking her hair and her breasts, while she was performing oral sex, and he was also grabbing her head and forcing her to perform oral sex on him.... After this sexual activity, she began to cry and went to the bathroom where she vomited.
Wadman then told her that he would buy her a new dress. . . . While at the French Cafe, Wadman gave her this dress and said that he wanted to show her the wine cellar. ... She removed her clothing and put on the dress. He said that she would look better without the dress so she took off the dress and he removed her panties and sat her on top of a table and spread her legs. He then began touching her and she was crying because she was afraid that he would rape her. He masturbated and ejaculated on her. When he ejaculated, she physically drew back which made Wadman very angry....
She stated that during parties sexual encounters would occur between adult males and minor males. Usually present at these "parties" were Larry King, Robert Wadman, Gene Mahoney, Alan Baer, Peter Citron, Harold Anderson, and the superintendent of a school....
She told me that a photograph was taken of her at a later party while she was tied up. It is probable that the photograph was taken by Rusty Nelson. She describes Rusty Nelson as having blond hair, average build, approximately 27 years old, and that he has acne scars on his face.... Reference group sex, photos were taken of the group sex encounters by Larry King and the photographer, Rusty Nelson. She mentions that her hands were handcuffed and her feet were tied up....
She said that Alan Baer "cruises" the Old Market area for young boys, then takes them back to his office where he has them run naked on a treadmill while he watches them. This has been corroborated by Troy Boner who did perform this activity for Alan Baer....
She states that she witnessed a young boy sitting on Bob Wadman's lap at a party and that he had his hands between the boy's legs....
She also discussed the activities of Harold Anderson. She said that he likes young boys and that his "regular" boy is named Jeremy (Last name unknown) and that he was approximately 14 years old when she witnessed them together. She said that Harold Anderson gives money to boys and that she has seen young boys performing oral sex on him. She stated that she has witnessed Danny King performing oral sex on him. . ..
I asked her to elaborate on the superintendent she mentioned as attending the "parties." She said that he lives approximately 40 miles from Omaha, is gay, older, balding, has bad teeth, and stands approximately 6'. She stated that this individual had sex with Troy Boner at the Twin Towers apartment and that he gave money to Troy for this....
Corroboration: You will later see that another witness, Danny King, identifies Deward Finch, former superintendent of the Fort Calhoun High School as an individual who he had sex with on many occasions. He also fits the description as related by Alisha.
Other information from Alisha was that Troy Boner and Danny King were taken to Council Bluffs by adult males for sexual purposes.
Corroboration: Troy Boner and Danny King related these events in detail in their respective videotaped statements.
Alisha also describes a forced sexual encounter which occurred at the French Cafe in August of 1985. Present were five boys from Boys Town, Tom McKinney [sic], and Judge Theodore Carlson, among others. Larry (Lnuk) told her that "someone is waiting downstairs and you'd better be good." She performed oral sex on Judge Carlson, and the encounter lasted approximately 20 minutes....
It should be mentioned at this time that the individual identified as Larry (Lnuk) is known as Larry King's "henchman". I have been unable to determine his last name. It wasn't usual for the individuals in this group to divulge their last names, and it was also common to use aliases....
Please note that Alisha became very upset when discussing her sexual activities with Bob Wadman, and with other individuals. The video was stopped several times so that she could compose herself.
She said that Wadman had told her that Larry King "owes him a lot" and that "he had done a lot for Larry King." ...
She said that she was told that [Omaha Mayor] PJ. Morgan supplies a lot of drugs....
Alisha took numerous plane trips at the direction of Larry King for sexual purposes. These trips include trips to Los Angeles, Kansas City, Pasadena, CA. On these flights were other minors. Information regarding these flights is as follows: ...
Private Flights:
The first private flight that Alisha was on occurred in March of 1984.... The plane landed at a small airport in California.... Upon their arrival, Danny and Alisha were taken to an Embassy Suites type motel, and two businessmen came into their room. One man had sex with Danny, and one man had sex with Alisha. They received no money. Please note that she said that Larry King had ordered her to take this trip.
The man that Alisha had sex with she describes as "extremely weird." He hurt her, forced her to have anal sex, slapped her and threw her around. He took out a knife and threatened her if she didn't perform oral sex on him, and threatened to cut off her nipples. She was afraid and crying.
She stated that when the men finally left, that they were both very upset. She described Danny as being very upset and angry. Their ordeal with these two men lasted approximately six hours. Also, they were both afraid to take a shower for fear that the men would come back....
Corroboration: Troy indicates in his video statement that Alisha, after this ordeal, was extremely upset and "smelled" and was a "mess." ...
When Alisha was asked who participated and who was aware of the transportation of kids across state lines for sexual purposes, she said that Larry King and Alan Baer were aware of this. It is probable that other adults were also aware of this. She stated that Bob Kerry [sic] knew about these activities and that Larry (Lnuk) had told her this. Larry (Lnuk) also indicated that Bob Kerry knew about the closing of the Franklin Credit Union before it fell.
Other issues discussed regarding Bob Kerry consisted of Alisha's statements that she had a friend who works for Dixon and Dixon law firm who is responsible for maintaining the keys to the file room. Her name is Jackie Compton, and she has told Alisha that there are various documents with Bob Kerry's signature on them that relate to the Commonwealth ordeal. This is explained in detail in the first video taped statement....
Alisha discusses the friendship between Judge Carlson and Tom McKinney, Assistant Douglas County Attorney. . . .
She stated that McKinney and Carlson are also involved in drug activity .... She also knows Peggy* West, the daughter of Gary West who is a good friend of Larry King's. She said that Peggy may have also been exploited and/or is aware of these activities. She is also acquainted with Gary West and indicated that he is a bartender at the Max Bar in Omaha.
When questioned about satanic cult activity, she said that Troy Boner and Danny King were involved in this activity,and that at one time Danny King was extremely "anti God."...
She also mentioned a house in Leavenworth where there is, or was, a pentagram drawn on the kitchen floor. She also saw satanic pictures on the walls of this house .... In addition she stated that she saw Bob Wadman coming out of this house on one occasion.
Corroboration: Loretta Smith mentioned that a person actively involved in cult activity was a male identified as Kings Horses. She [Alisha] said that Larry (Lnuk) who is Larry King's "henchman" is known as Kings Horses.
She also indicated that she knows an individual identified as James Teddy Broom. She describes him as black, with greasy hair, a flat nose, slitted eyes, and that he "walks funny." Said that he does the "dirty work" for Larry (Lnuk).
Corroboration: Loretta indicates that Teddy Broom was instrumental in satanic cult activity, and threatened her if she said anything about what happened at the meetings. Loretta Smith also indicated that Teddy Broom raped her mother, Jackie Smith*, as a warning to her....
She knows an individual named Frank Kessler who she thought was "very strange" and who always talked about the occult, but wanted to get out of it.
You will also see a transcript of a taped inteview from Lisa Sutherland*, who discussed satanic activity and teenage prostitution in Omaha. She too mentions Frank Kessler as being involved in cult activity.
She also knew of a social worker identified as Florence Davis who may be associated with this group of people. She stated that Larry King could "get anybody out of anything" by offering them bogus jobs. It is also possible that Florence Davis may be involved in "funneling kids" into certain foster homes. See a transcribed interview with Millie Boggs* the Director for the Omaha Children's Home for further information regarding Florence Davis....
Caradori filed a back-up report for this part of the precis, entitled "Taped conversation with Gary A. Caradori and Millie Boggs."
GC: But I'm also interested in when I asked you about what's her name, she was living "high on the hog."
MB: Florence Davis?
GC: Florence Davis.
MB: See, I'm not. ... Let me tell you a little bit about what I know about Florence. I mean, Florence just used to be a line worker. I mean she was a worker like I am.
GC: I want you to talk about that because her name has come up. Just because a person's name has come up doesn't make you guilty either.
MB: No.
GC: And maybe it came up because she had the position at the time. And doggone it, I'm going to get her pulled on the carpet and have her explain herself from back then.
MB: You'll never get her back here.
GC: A subpoena might bring her back.
MB: Well maybe. I hear she's in San Francisco. I don't know. All of a sudden one day she was just there and the next day she's gone. And nobody can understand how Florence gave up this good job being a supervisor which would, I think had always been her goal....
In late June of 1983 I attended a meeting at the state with Florence Davis, the McArthur children's worker, and Lloyd Linquist, the permanency planner. Basically, the purpose of this meeting was to tell me that the state would not change their minds and that they felt they were in a better position to judge what the McArthur children needed, and that they were going to proceed with adoptive plans of placing the children with the Webb family in Fort Calhoun.
A few days later I went with Florence Davis to the Webb home, as Florence thought I would feel better about the placement if I had the opportunity to meet the Webb's. Quite to the contrary, after meeting with Mr. and Mrs. Webb, I was more concerned than ever as I did not feel that this was a proper home for these three children....
Something that I think is extremely suspicious is that about the time that the King mess was surfacing, Florence Davis suddenly left the state, almost overnight, and supposedly is living in California. A short time later, Lloyd Linquist went on sick leave and was gone for many months. And then about the time he was to return, he also resigned. While he was on leave I understand that he took a trip to Tahiti. I think personally that Lloyd Linquist and Florence Davis know a lot about the situation regarding the abuse of these children and they should be found and questioned....
One time when Florence was working for the state, I believe before she became a supervisor, I noticed that she declared bankruptcy while she was living in her new condo and had her new car. However, after that whenever I would see Florence it seemed like she was dressed extremely well and did not appear to have any monetary worries, although I am not a friend of Florence's and I did nothing with her socially.
Lloyd Linquist also was impeccably dressed, although someone told me that he had only rented a room at the Grace Bible Institute and actually didn't even have an apartment. ... I thought it was interesting that Lloyd could take trips to Europe which I know that he did in the years that he was a permanency planner, and other exotic vacations on the salary that he was paid by N.D.S.S.
Caradori's summary of the testimony from Alisha resumed:
During the second video taped statement, Alisha again discussed the pornography aspect of this case. She said that Rusty Nelson develops his own photographs and that he would more than likely have the negatives of the group and individual pornographic photos, possibly to blackmail Larry King at a later date. She reiterated that Rusty Nelson and Larry King would "direct" these photographic sessions. She said that she would cry and try to get out of participating.in these sessions, but she would be "slapped around" if she didn't participate....
She also states that Alfie Allen had been given a Mercedes Benz by Larry King, and that Alfie was very upset when the money stopped coming in because of the closing of the Franklin Credit Union....
She again discussed the parentage of her child. She said that she is 99.9 percent sure that her child is Bob Wadman's, and that conception occurred in August of 1984. She had sexual intercourse with him on August 8th, August 10th, August 17th, and August 22nd. All of these sexual encounters occurred at the Starlight Motel, with the exception of August 10th which occurred at the Twin Towers apartment. ...
Caradori recommended 62 individuals and documents to be subpoenaed on the basis of Alisha Owen's testimony. He finished the precis with a list of alleged perpetrators, named by her:
1. Larry King
2. Bob Wadman
3. Harold Anderson
4. Alan Baer
5. Deward Finch
6. Peter Citron
7. Judge Theodore Carlson
Owen provided Caradori the name of Troy Boner as a victim witness who could testify on the same events. After beginning a search for Boner, Caradori received a telephone call from him at 4:40 a.m. on November 25, 1989. From 4:30 p.m. later that same day, until 10:22 p.m., Troy Boner told his story.
Since it was apparent that Troy had met Alan Baer before meeting Larry King, I asked him when he first met Alan Baer. He said that he first met him in August of 1983 through a friend of his named Tim Prescott*. He said that Tim picked him up in Alan Baer's car and told him how he could make some money. Tim took Troy to Alan Baer's residence in the Twin Towers which Troy stated was apartment #201....
He said that he knew he was there so Alan Baer could get acquainted with him, and so he could make some money. He thought that he would let Alan Baer perform oral sex on him for him because Tim Prescott had told him what the "arrangements" would be....
He said that he walked back to Alan Baer's apartment later that afternoon at Alan Baer's request. Alan met him at the door in a yellow Ralph Lauren bathrobe. Alan Baer asked him to get undressed. (Troy stated that he thought he was going to get $50.00.) He started undressing in the hallway and Alan Baer asked him to go into the bedroom. Alan Baer then got undressed and a sexual encounter ensued, including mutual masturbation and oral sex. After this sexual encounter, they took a shower together and he received $400.00 in fifty-dollar bills. Alan Baer told him to call him that next Tuesday.
Troy met with Alan Baer again five days later, after Troy had called him from his residence in Council Bluffs to make the arrangements.
Corroboration: Get the telephone records for his residence in Council Bluffs at this time....
On February 5, 1984, Alan Baer took Troy and another young kid to Des Moines, Iowa. The other boy's name was Shawn (Lnuk) and he was approximately 12 to 13 years old. They drove to Des Moines in a tan Mercedes, which Troy thought might possibly be rented. They stayed at the Savoy Hotel in downtown Des Moines. Troy and Shawn stayed in the room at the hotel while Alan Baer attended some business meetings. The three of them had several sexual encounters while in the hotel. At one point, Troy left the hotel and upon returning found Alan Baer asleep holding Shawn.
Troy's mother had filed a missing persons report while he was in Des Moines. He then called the mother of his girlfriend and had her pick him up in Des Moines. He left without Alan Baer's knowledge.
Corroboration: Check for a tan Mercedes possibly leased! rented to Alan at this time. Check to see if Loni Boner did file a missing persons report at that time. Who was Troy's girlfriend at that time? Check her and her mother to see if they did pick up Troy in Des Moines. Check the hotel records at the Savoy Hotel for that time period....
In July of 1984 Troy was approached by Larry King at the Max Bar. Larry knew what Troy looked like from the pictures he had received from Alan Baer. Larry King grabbed his crotch while at the bar. Please note that he was a minor at this time....
Larry King then had Troy move into the Travel Lodge Inn. . .. During this three weeks, Larry would stop by at various times, usually in the afternoon, for sex with him. They would perform oral sex on each other, and Larry King performed anal sex on Troy. Larry King also wanted Troy to urinate on him in the bathtub, which he did....
In May of 1985 he [Troy] talked with Danny King about how Danny could make some money. Danny initially objected and said he did not want to get involved, but he later changed his mind. Troy had also told Alan Baer about Danny King. Troy then took Danny to Alan's apartment at the Twin Towers during which time Alan Baer asked Danny some questions about himself. Alan Baer then told him [Troy] to leave. He waited for approximately three hours before Danny came out of the apartment, and Danny showed him $300 that he said Alan Baer had given him. Danny said no sexual activity went on, but Troy stated that he later found out that Alan had anal sex with Danny.
In June or July of 1985, he went to a party where a 15 year old boy was in the center of the room with his pants down. An adult male was inserting beads into the young boy's rectum. Other adult men were seated around the young boy masturbating. Troy was ordered at this party to play with the young boy's genitals.
He stated that he thought the adult male who was inserting the beads into the young boy's rectum was a police officer. An individual named Mark* (Last name unknown) had told.him that this adult male was a police officer. The alleged police officer masturbated on the young boy in the center of the room ....
Troy also stated that an individual he identified as PJ. Morgan was there, also masturbating while the young boy was being exploited in the middle of the floor. ...
He stated that he met Alisha Owens in February or March of 1984. He stated that Alisha did lose her virginity with him, and that he did introduce her to Bob Wadman at a party held in an office in the Woodmen Tower ....
When asked for further information about Bob Wadman, he stated that he likes to have sex with young kids and that in addition to Alisha Owens, there was another young girl he was involved with identified as having the last name of Hovel *, who was a runaway from Chicago. He stated that the last time he saw this girl was in May of 1986.
He stated that although he did not take any trips with Wadman, that Wadman did take trips with Larry King....
He said that the reason he went on this flight was to have sex with an individual named Ron Gilbert. He stated that Ron Gilbert is a movie producer for a television series. He stated that he received no money for having sex with Ron Gilbert, and that he and Larry King also had sex while on this trip....
The next trip occurred in a private plane to California. Present were Troy, Danny King, Alisha Owens, two smaller kids, and Larry King.... he said that he knew Danny and Alisha were going to be used for sexual purposes, even though neither one of these individuals wanted to go. The two smaller unidentified kids got dropped off by Larry King and Troy at two different locations. He stated that he believes that these two kids were "sold." ...
Troy also discusses Robert Andreson [sic] having a collection of pornographic photographs. He feels that this individual works for Union Pacific Railroad and that he lives in Lavista, NE....
He also stated that the following individuals supplied illegal drugs:
Larry King
Alan Baer
David (Lnuk)
John Points
Bob Wadman
Mark* (Lnuk)
Troy also stated that Bob Wadman brought two grams of cocaine to the party in North Omaha....
Troy stated that Claire (Lnuk), Alan Baer's secretary, would set up "appointments" with kids for Alan Baer. He described Claire as an older woman, petite, with gray hair that she wore in a bun. Troy stated that Claire knew who he was.
He stated that Larry King and Bob Wadman and a couple of other men took a trip somewhere and with them were two young boys. He stated that the two young boys did not return from the trip....
When asked what other kids were involved in these activities, he stated the following:
Rusty (Lnuk)
Danny King
Alisha Owens
(Fnuk) Hovel*
[three others]
On December 4, 1989 and December 5, 1989, I took Troy to the Omaha, Nebraska, and Council Bluffs, Iowa, areas in order to identify the various locations he made statements about in his videotaped statement. See Exhibit PH-I for the photographs and his identification of these locations. See T-18 for the daily reports covering these two days.
On December 22, 1989, I video taped Troy again for corrections that he wanted to make reference certain details in his first video taped statement....
It is recommended that the following individuals and! or documents be subpoenaed reference the statements and allegations made by Troy BONER. [60 names and references are listed.]
Perpetrators:
Alan Baer
Larry King
P.J. Morgan
Bob Wadman
Ron Gilbert
Henry (Lnuk)
Bob Andresen
[two others]
This writer telephoned Danny King at the Residence Inn
and, along with staff member Karen J. Ormiston, proceeded
to this facility . . .
At approximately 9:32 a.m. the interview began with James Daniel King in room 422 at the Residence Inn. Please note that approximately five hours of video was completed. It was quite apparent to this writer that it was very difficult for Danny to divulge the events of his past....
It is apparent that there are some discrepancies between the statement of Alisha Owens and that of Danny King, however this writer feels that Danny was heavily involved with drugs during this time period and wasn't quite sure as to certain details. As a matter of fact, Danny did not know what month follows December...n.
At this time, Danny indicated that he was relieved and wanted to "go forward." It is this writer's opinion that Danny is finally coming to grips with reality. He also indicated that this is the first time he was ever told anyone about the events that have happened to him.
From Danny King's videotape:
Danny said that he first met Alan Baer toward the end of 1983. This would have made Danny approximately 13 to 14 years old. He met Alan Baer through Troy Boner....
Danny met with A approximately two weeks later. A and Danny drank schnapps and both participated in oral sex. Danny received 50.00 from A. The time was after school at approximately 5 p.m. He would have been 13 or 14. This occurred at A's residence ....
Danny then saw A for approximately seven months, every week. The same events would occur as stated above....
In April of 1984 Danny met Larry King at A's residence. Cocaine was used by A and Danny. LK and Danny then went into the bedroom. Danny was lying on the bed and LK had anal sex with Danny. It hurt Danny and Danny made him stop. Danny then gave LK oral sex but spit LK's ejaculation. LK then hit Danny with a shoe on the side of the head because he did not swallow it. Danny received no money for this occurrence....
At this time Danny started seeing A again and A introduced Danny to "shooting up" cocaine. A gave him a shot in the arm and Danny got sick. A shot up also. Both participated in oral sex and Danny received $50.00 ....
Danny mentioned an individual named Larry, Jr. who is LK's right hand man....
When shown photographs, Danny identified Deward Finch as being "Chuck" who Danny had engaged in sex with quite a few times.
Perpetrators:
Larry King
Alan Baer
Deward Finch
Bob Andreson [sic]
Gary (Lnuk)
Schmit expressed his personal inclination to release the tapes in toto, for the sake of "the safety of our witnesses" and a speedy investigation. He abided by the committee consensus, however, to hold them back.
By December 1989, local, state and federal law enforcement had received copies of the videotapes of Alisha Owen, Troy Boner, and Danny King. Some officials, notably Douglas County Sheriff Dick Roth, said they believed the victim-witnesses. After watching five hours of the tapes, the Associated Press reported in February 1990, Roth "said he found the witnesses' statements to be credible." But there was no apparent move toward prosecutions.
to be continued...next...
THE DECAMP MEMO
• • •
As the disclosures began to flow, on how King's $2 million
dollar credit union had tens of millions of dollars in deposits
unaccounted for, and on the secret second set of books, I
suggested to Senator Schmit that he talk to some other legislators
about investigating whether some state laws were violated. Why was I concerned? Because, from my experience as chairman of the Banking, Commerce, and Insurance Committee of the Legislature, I knew that with all the regulatory controls existing for a federally insured institution, it was impossible for such a theft to occur without cooperation by higher up officials. Larry King could only have accomplished this massive theft with the help or cooperation of regulatory officials or politicians at the highest levels. That meant that institutions of government must have been compromised.
Senator Schmit had his own reasons for thinking that a legislative probe of the Franklin collapse was in order. He had heard from friends of his in the black community, that Larry King spent money like a drunken sailor, but was not making any loans in the community.
When I discussed a possible investigation with Schmit, I had no idea that anything other than theft, and the possible protection of illegal financial transactions, would be involved. As the investigation was launched, no one, except possibly Senator Ernie Chambers, knew where it might lead.
• • •
On November 18, 1988 the Legislature passed Schmit's
resolution in favor of an investigation. In front of special hearings
of the Legislature's Executive Board, the strands of evidence
against Larry King were finally pulled together, for the
first time, before officials who would pay attention. After the first session, on December 12, 1988, Senator Chambers made a dramatic announcement about the probe. The investigation would go into not only financial wrongdoing, he said, but also the physical and sexual abuse of children by persons connected with Franklin. People holding official jobs might be affected, added Senator Schmit.
At the three and a half hour Executive Board hearing on December 19, 1988, Carol Stitt, Dennis Carlson, and Burrell Williams of the Foster Care Review Board summarized the abuse complaints centered around Franklin's top officer. They presented their files on the Webb foster home and on Loretta Smith.
CARLSON: The nature of these allegations are something that is going to shock the Committee. They deal with cult activities, they deal with sacrifices of small children, they deal with sexual abuse, and there's a correlation between these two different reports. We have, the Boys' Town report ... prepared by a worker from Boys' Town named Julie Walters, ... (which) contains the allegations of the children that were in the Webb foster home, Nelly primarily. Years later, well, two years later, we have Loretta Smith in.Richard Young Hospital who's making allegations against Larry King and as far as we know there is no relationship between Nelly and Loretta Smith. . .. Both reports talk about the Omaha Girls Club, both reports mention a specific individual who is the superintendent of schools....
SENATOR REMMERS: The question that came into mind, it's been in my mind since you've been testifying and I think you've answered part of it just now, is you're talking about about these abuses from children from Boys' Town and Girls' Club and so forth, now is there a common thread that goes over here to the Credit Union deal that we are investigating? In other words to the Franklin Credit Union? Is there a common thread there that kind of leads to that?
CAROL STITT: Well, the common thread is Larry King.
SENATOR REMMERS: Yes, that's what I mean. It all goes back to him? OK.
CAROL STITT: Yes, he seems to be more the organizer, or the high-class pimp, I mean if that helps fit this together.
Stitt also clarified what she had written in her June 1988 letter to Attorney General Spire, about a Kansas City connection of Larry King. She testified that she had cross-checked with the Kansas City detective, who reportedly inquired of Kirstin Hallberg about when Nebraska was going to crack down on King. The officer, said Stitt, "confirmed that Larry King had been there, had contributed money to a group home and when he left, three boys came forward and said that they had been abused by him while he was there."
The Executive Board also received from the F.C.R.B the handwritten report by Julie Walters, on her interview with the teen aged victims during 1986. In the December 21, 1988 Omaha World-Herald, reporter James Allen Flanery recounted a telephone interview with Walters at her home in another state, in which she told him how their testimony had seemed at first "too bizarre to be true." But the more experience she gained with troubled children, Walters added, "working in probation, I'm more sure than ever that there is more truth than not in their accounts. The conclusion I reached was the kids I spoke with were not lying."
What the senators heard at the closed December 19, 1988 meeting shook them to the bone. "The information brought tears to my eyes," Schmit said, according to the Lincoln Journal. "I do not cry easily and I was not the only person that was moved." Chambers echoed the witnesses' outrage about delays: "With this type of information it is inexcusable that action had not been taken of an investigative nature. People were not contacted that should have been. Leads were not followed up that should have been followed up. My feeling is that the whole thing is being sat upon and nothing was done."
The question of a cover-up of Franklin-linked crimes came up at the outset, in this way. Omaha Police Chief Wadman and state Attorney General Spire offered a lame protest. "Every step that should have been taken was taken," Wadman told the Journal. Spire said, "We did receive some sensitive information in July. My office acted promptly and professionally and nothing was sat on. I am confident that law enforcement-both federal and state-is doing its job in the situation.... "
The Legislature's Franklin committee hired its first investigator, former Lincoln policeman Jerry Lowe, in February 1989. Attorney Kirk Naylor came on as Special Counsel. On February 15, Lowe sent a memo to the committee on the results of his first comprehensive evaluation of the case, including its handling by law enforcement. Lowe wrote:
This matter is indeed a complex and complicated one, commencing with the closing of the Franklin Credit Union ... and mushrooming into a situation where additional allegations (other than the financial improprieties) have arisen, including influence peddling, child abuse and neglect, child sexual abuse, pornography, substance abuse, homicide, and inaction and possibly malfeasance on the part of law enforcement agencies, public agencies, and public officials for events dating several years back. More importantly, there seems to be a growing public perception that many of the affected agencies and/or officials are participating in a cover up.... The task which the Committee has undertaken will not be an easy one....
The allegations regarding the exploitation of children are indeed disturbing. What appears to be documented cases of child abuse and sexual abuse dating back several years with no enforcement action being taken by the appropriate agencies is on its face, mind boggling.
In this and other early reports, Lowe made clear that every aspect of the Franklin case was politically hot. Larry King had become wealthy and influential thanks to quite a number of "big people," he commented. Moreover, Lowe reported, there were indications that King was involved in guns and money transfers into Nicaragua, of involvement by the CIA, and possibly "a White House connection." There appeared to be "some type of connection between the money missing [from Franklin], the crisis in the Savings and Loans, and the funneling of money to Haiti and Nicaragua."
Lowe wrote that there was evidence Omaha Police Chief Robert Wadman had stayed at Larry King's residence in Washington, D.C.
Lowe retraced the leads contained in the documents assembled by the F.C.R.B. In March, he interviewed Loretta Smith three times. In April, he talked with Cornelia (Nelly) Patterson, who had taken back her original name after she escaped from custody of the Webb's.
• • •
With Lowe's investigative reports in hand, the Franklin committee
convened hearings. When some state officials were
called before them, the senators met with a stone wall. Testifying on June 22, 1989, Attorney General Spire appeared still unchastened. Just as his office had dallied in the face of Carol Stitt's plea for action on complaints against Larry King the year before, Spire now said about Franklin-linked child abuse, that "based on conclusions and reports of the FBI, the Omaha Police, and the Nebraska State Patrol, all three of those have concluded that the reports do not have substance."
Someone was working at cross-purposes outside the hearing room, as well.
While the Legislature's Franklin committee was getting started at the end of 1988, the N.C.V.A selected a firm called Financial Advisory Group, of Council Bluffs, Iowa, to make its own determination about what had happened to Franklin's missing millions. FAG was a partnership formed by John Queen and Robert Kirchner, whose earlier appointments included the one they got from Governor Kerrey-state regulators to oversee the liquidation of the Commonwealth Savings and Loan. In their 1989-1990 audit of Franklin Credit Union, Queen and Kirchner would conclude that Larry King spent nearly all of it on flowers, limousines, gold watches, and his generally extravagant lifestyle.
Even as he proceeded with the audit of Franklin, Queen was serving during 1990 as deputy receiver for Commonwealth, overseeing the liquidation of the bank's remaining assets and the disbursement of the proceeds. On August 14, his chief assistant in the receivership, Kent Johnson, was arrested by the FBI for stealing over a million dollars in Commonwealth funds. Although Queen's co-signature was on every check Johnson wrote to steal the money, Queen claimed that his name had been forged. His career, in any case, was tightly intertwined with Johnson's. Johnson worked for him in the Commonwealth receivership, on the Franklin audit, and at an Omaha corporation he owned, Phoenix Sign Corp. This was a venture Queen launched by buying up the assets of Globe Neon, a bankrupt firm. One of Queen's fellow holders of a $50,000 share of Globe Neon before it folded, was none other than Larry King!
Queen and Kirchner enjoyed the sympathy of investigator Jerry Lowe, who wrote in his February 15, 1989 case summary for the Franklin committee:
A private consulting firm headed by Omaha residents John Queen and Bob Kirchner, both formerly associated with the receiver for Commonwealth Savings in Lincoln, Nebraska, was retained by the National Credit Union Association (NCUA), in early 1989 and given the responsibility to trace all the funds flowing into and out of the Franklin Credit Union. . .. I am familiar with both Mr. Queen and Mr. Kirchner due to my involvement as a Lincoln Police Department investigator in the Commonwealth matter. ... I can personally attest to the thoroughness and capabilities of Mr. Queen and Mr. Kirchner and the people assisting them and believe an association with them would save us an enormous amount of time in following the money.
I have been Senator Loran Schmit's personal attorney for a number of years. When we were both senators, we frequently worked together on major issues. At other times, such as when we disagreed on the issue of telephone deregulation, we led opposite sides, and fought each other tooth and nail.
During the early months of the legislative investigation of Franklin, I personally had serious doubts as to the validity of
what was being alleged. I provided a minimum of legal advice to Senator Schmit during this period, but he did insist that I be available to provide him such advice.
Schmit had the experience of a previous investigation, involving drug-related matters and the State Patrol, which ended up with him and other senators, including myself, being sued by some of the individuals investigated. He wanted to make sure that he made no error that would cause any legal liability for him. Even though we had won that earlier suit against us, Senator Schmit wanted to exercise all caution, to protect himself from lawsuits. Therefore, like many other state and national politicians, he quite properly had private legal counsel-me.
In the spring of 1989, after the Franklin committee had been conducting investigations for some time, Senator Schmit sought my legal advice. He wanted to know the legal liability involved, if he supported a planned report of the committee, which was to suggest that there was child abuse committed by prominent individuals-not to be named-which had not been properly investigated by agencies of government.
I asked for no names and he provided no names of the individuals he was talking about. In point of fact, there were enough rumors floating in the legislative corridors and on the streets of Omaha, that at least a dozen prominent persons could have been the subject of these accusations.
I gave him the same advice then, that I would give now: "Accusations of child abuse are the worst accusations you can make against an individual. That is because, no matter what the truth of the matter, once the accusation is made, it will never be able to be rubbed completely off, even if the individual accused is as innocent and pure as can be. Therefore, before you sign your name to anything that suggests that there is serious child abuse or before you suggest that an agency of government has failed in its duty to find or investigate child abuse, make sure you have the smoking gun that establishes that is what actually occurred. Not just for your legal protection, but because that is the right thing to do. To falsely accuse of child abuse is a terrible thing. To cover up child abuse, is worse than falsely accusing."
I had my own personal experience of a false accusation of child abuse, which still bums in my soul. It was also a hideous example of the use of political office to intimidate, silence or destroy political enemies.
The year was 1984, early January. I had announced my intention to run for the United States Senate. As chairman of the Legislature's Banking Committee, I was actively seeking to investigate the collapse of Commonwealth Savings, which had just occurred. In an Associated Press listing of the ten most powerful people in Nebraska, as ranked by media editors and publishers, I was number 5, behind the governor, U.S. Senator J.J. Exon, Omaha World-Herald publisher Harold Andersen, and University of Nebraska President Ronald Roskens. Polls showed me as the leading candidate for the Republican senatorial nomination.
Then, I received a message from Republican Party leaders. It was simple: "GOP strategists at the highest levels believe this is the year the Republicans can beat J.J. Exon. Opinion poll analysis shows that such a victory can only come, if the candidate is a woman and has no political 'baggage.' (Remember, 1984 was the year of Democrat Geraldine Ferraro's candidacy for U.S. Vice President, the 'Year of the Woman' in politics.) Republican leaders are fearful that you, John DeCamp, will be able to win the primary, but because of 'baggage' and controversiality, you will not beat Exon in November. Therefore, Republican leaders ask you to withdraw from the primary. If you do not drop out voluntarily, you will have to be stopped some other way. And stopped you will be, because this race means so much to Republican leadership, at the highest levels in Washington."
I did not listen. I continued to campaign for the Senate seat. Shortly thereafter, a tenant in one of my apartments, who was delinquent on her rent, lodged an anonymous complaint to the Nebraska Department of Social Services. She charged that I and my wife had "abused" my young daughter when she was five years old. A picture in a family photo album, showing my daughter in a pose like the Coppertone baby ads, was the basis for the complaint.
Two investigations conducted immediately, one by the D.S.S and one by the Lincoln Police, found there was no child abuse and so reported.
But a County Attorney, Mike Heavican, took matters into his own hands. Heavican was on the Republican search committee for a senatorial candidate, which ultimately picked a woman with no "baggage," and she lost to Exon. He also was someone whose name had come up as my Senate Banking Committee attempted to start probing the Commonwealth and State Security matters, as someone who may have granted illegal tax favors to involved parties.
Heavican filed a petition, alleging that I and my wife had abused our daughter in the way we were educating and raising her. It was a civil, not a criminal, filing, but I am sure it was designed to gain statewide publicity.
Heavican's action also exemplified how a public position can be abused. It comes as a shock to most Americans, that the lowliest county attorney has absolute immunity when he files complaints or charges against somebody, even if he does so knowing them to be false. His automatic immunity is supposed to protect the prosecutor, as an institution of government, from being deterred from effective action by the specter of future lawsuits. The abuse of this institutional privilege can be terribly destructive.
Months of investigation resulted in a legal opinion from Judge W.W. Nuernberger, that there was no child abuse. Nuernberger concluded that if Mr. and Mrs. John DeCamp were guilty of child abuse, then so were a lot of families and so was the late President Kennedy, and perhaps every family in Nebraska would have to destroy its photo albums, if I were considered guilty of anything.
While the investigation was under way, media coverage continued to smear my name with the charges. I maintained that the phantom child abuse was concocted by Heavican, using the County Attorney's office, for the political purposes of knocking me out of the Senate race and stopping my Commonwealth/State Security investigation. Six years after these horrible events, my suspicions were confirmed.
On March 17, 1990, the Kansas City Star reported on the DeCamp child abuse allegation: ...
Roland Luedtke, a former lieutenant governor and the mayor of Lincoln from 1983 to 1987, launched his own review of the charges. "The report that came back to me was that [DeCamp] was pure as the driven snow," Luedtke said, but, he added, whoever may have had it in their mind to get rid of DeCamp "accomplished their purpose."
My 1984 ordeal came to mind in the spring of 1989, as I insisted to Senator Schmit that he exercise caution in the Franklin case.
• • •
Senator Schmit offered an amendment to the committee
report, written by himself, which stated, in essence, that at this
point in the investigation, the legislative committee did not
have the smoking gun that would establish the truth of any
of the child abuse allegations or the failure of institutions
of government. In July 1989, a controversy broke out on the Franklin committee, over Schmit's amendment and the course of the investigation. Some members maintained that Senator Schmit was not doing enough to follow up the child abuse. Schmit rejoined that the information gathered thus far by Lowe, while useful, was mostly second-hand, and that the committee should follow the advice he had been given by a friend in law enforcement: "Follow the money trail." There is almost no important crime that can be committed, said Schmit, echoing his friend's advice, without spending money, and spending money leaves a paper trail. It should be possible to move from hearsay to court admissible evidence such as checks, credit card receipts, and flight manifests.
Gary Caradori
Senator Chambers and Senator McFarland departed from
the committee. Investigator Lowe and Counsel Naylor resigned.
Schmit and the remaining four other members of the Franklin
committee,three farmers, a plumber and a grandmother, as Schmit described them-hired private investigator Gary Caradori,
a former state patrolman, to replace Lowe in August. In a review of his work for the committee, Caradori recalled his first impressions:
From the onset it was apparent that I was up against a barrier regarding mistrust of the Franklin Legislative Committee. I was told repeatedly that people were afraid to divulge any information, not only because of retribution of the alleged perpetrators, but also because they feared they would be publicly discredited by the Omaha World-Herald. People were also becoming discouraged by the lack of progress made thus far on the investigation and they translated this to mean "cover up."
Initially, the reports which Mr. Lowe had generated were reviewed in detail. It was evident that while there were a large amount of reports generated, that very little of substance had been gained by him regarding firsthand information. It was then decided that, while secondhand information had been valuable in that it presented an idea of the possible scope of abuse going on, that it was more important to locate individuals who had actually been abused and participated in the various activities that comprise this case.
CHAPTER 8
"SOMEBODY HAS TO
TELL THE STORY"
Caradori did find victims who would talk. Four of them allowed
him to videotape their stories, in nearly 30 hours of sessions
during late 1989 and early 1990. These interviews contained
detailed allegations of sexual abuse, drug usage, pornography
and other crimes by prominent Omaha citizens. Implicated,
among others, were individuals already named by Nelly and
Kimberly Webb, Brenda Parker, and Loretta Smith, as abusers
or pornographers: Rusty Nelson, Deward Finch, Larry King. What these victim-witnesses related became the central matter of the Franklin case, but nobody except for a few law enforcement personnel, state senators, and grand jury members has viewed the Caradori tapes. Snippets were aired on television in Omaha. With their contents largely not publicized, the tapes became a target of speculation and denunciation, rumor and doubt.
The interviews are reported here for the first time in considerable detail. The excerpts that follow are from Caradori's written precis of the interviews, which include his notes on discrepancies in the testimony, corroborative details, and ideas for followup investigation.
• • •
Ms. Owens [sic] was informed of the purpose of our visit and was asked for her cooperation in the matter. Ms. Owens indicated, after a three-hour interview, that she had been heavily involved with various individuals in Omaha, including former members of the Franklin Credit Union. She indicated that she was also involved with other minors involved in pornography and homosexual acts involving various people in Omaha. Several of the individuals she mentioned were Alan Baer, Harold Andersen, and also former Police Chief Robert Wadman, who had participated in many parties. It should be noted that Alisha also indicated that Mr. Wadman is a pedophile.
Contrary to impressions that the Omaha World-Herald tried to convey, Alisha Owen not only did not seek out Caradori, but she told him only a fraction of the story at that first meeting. As she later described to the legislative Franklin committee, she was extremely reluctant to get involved at all. After Caradori left, she contacted the prison psychiatrist, who directed her to Superintendent Lawrence Wayne. He advised her to tell the truth and to cooperate with the Franklin committee.
Caradori's daily notes for November 4, 1989 record what happened next:
Upon arriving from out-of-state on the above date, this writer received word that Alisha Owens had called this writer in an attempt to reach me regarding a meeting that I had conducted with her previously. Upon receiving this information, arrangements were made to speak with Alisha by telephone.
Alisha went on to state that she did not relate to me all of her experiences during the first time that we had met because she was "unsure" of this writer. She stated that she now wanted to come forward with the information that she had previously withheld. Specifically, she indicated that she was one of the minors involved in flights to other states, and she knew of other minors who were on these flights also.
On November 7, Caradori and Ormiston proceeded to York prison and took a sworn video statement from Alisha. The taping lasted from 11:38 a.m. until 10:00 p.m. In addition to the video record, Caradori made an annotated transcript, which is excerpted here.
Alisha Owens
After pursuing many leads, on October 30, 1989, this writer contacted Alisha Owens at the Women's Reformatory in York Nebraska. I spoke with Alisha for approximately three hours, during which time she indicated that she had been heavily involved in pornographic and sexual activity with various individuals in Omaha, including former personnel of the Franklin Credit Union. During this discussion with Ms. Owens she initially indicated that homosexual activities also occurred involving Alan Baer, Harold Anderson [sic] and Robert Wadman.
It should be noted that Ms. Owens remitted this information without being directly questioned about these specific individuals.... Following is the information gained from Alisha during the videotaped statement [of Nov.7].
During the course of the statement, Alisha stated that she first became involved with Larry King in August of 1983. Alisha was 14 years old at this time. She indicated that she met Larry King through some boys from Boys' Town, among them Mark Powers*. Mark had invited her to a party that next Friday night.
This first party was held in August of 1983 at a Twin Towers penthouse. Alisha arrived with Troy Boner and Mark Powers at approximately 10:00 p.m. in a car that Troy was driving. Present when they arrived at the party were Larry King, Bob Wadman, Alan Baer, Harold Anderson, and other adults that Alisha did not identify at this time. . .. Alisha estimated that there were approximately six adults and 20 minors. Mark Powers had told Alisha prior to going to the party that there would be marijuana, alcohol, and so much cocaine available at this party that "she would think it's snowing." ... Alisha stated that the party was held at Alfie Allen's apartment in this building....
There was a "professionally made" pornographic tape showing portraying two males, approximately age 17, engaging in homosexual acts.
Alisha observed Larry King and Larry (Last name unknown [Lnuk], black youth) going into one of the bedrooms. She observed later when the black youth emerged from the bedroom that he was tucking in his shirt and fastening his pants. Alisha also observed Alfie Allen going in and out of the bedroom numerous times. She observed a young boy approximately 14 years old sitting on Harold Anderson's lap. She then observed this boy and Harold Anderson going into one of the bedrooms.
Alisha observed Alan Baer using "two lines" of cocaine and smoking marijuana ....
A young boy was sitting on Harold Anderson's lap with his pants undone. He was stroking the child's penis. The name of the child is unknown ....
A third party occurred on the 21st or 22nd of September, 1983, at the same Twin Towers apartment. Alisha had turned 15 on September 18th. Present at this party were Troy Boner, Alan Baer, Robert Wadman, Mark Powers, Larry King, Larry (Lnuk), Danny King, and Harold Anderson.
Harold Anderson was "with" Danny King.
On the above evening, Robert Wadman told Alisha that she was pretty and asked her if she was wearing anything underneath her clothing. He asked her if she was wearing a bra. Sometime around 10:00 to 12:00 p.m., she was sitting on his lap. He indicated to Alisha that he knew she wasn't a virgin and he then felt her breasts. He told her that she had nice breasts. He felt her genitals and unzipped the zipper to the jumpsuit she was wearing. She asked him to stop and he grabbed her wrist very tightly and twisted her wrist.
He then removed her clothing and asked her if she knew what fellatio was. He said that he would show her what it was. He then instructed her to perform oral sex. Robert Wadman's pants and underwear were down. He pinched her on the breasts. She was kneeling on a cushion on the floor and he was stroking her hair and her breasts, while she was performing oral sex, and he was also grabbing her head and forcing her to perform oral sex on him.... After this sexual activity, she began to cry and went to the bathroom where she vomited.
Wadman then told her that he would buy her a new dress. . . . While at the French Cafe, Wadman gave her this dress and said that he wanted to show her the wine cellar. ... She removed her clothing and put on the dress. He said that she would look better without the dress so she took off the dress and he removed her panties and sat her on top of a table and spread her legs. He then began touching her and she was crying because she was afraid that he would rape her. He masturbated and ejaculated on her. When he ejaculated, she physically drew back which made Wadman very angry....
She stated that during parties sexual encounters would occur between adult males and minor males. Usually present at these "parties" were Larry King, Robert Wadman, Gene Mahoney, Alan Baer, Peter Citron, Harold Anderson, and the superintendent of a school....
She told me that a photograph was taken of her at a later party while she was tied up. It is probable that the photograph was taken by Rusty Nelson. She describes Rusty Nelson as having blond hair, average build, approximately 27 years old, and that he has acne scars on his face.... Reference group sex, photos were taken of the group sex encounters by Larry King and the photographer, Rusty Nelson. She mentions that her hands were handcuffed and her feet were tied up....
She said that Alan Baer "cruises" the Old Market area for young boys, then takes them back to his office where he has them run naked on a treadmill while he watches them. This has been corroborated by Troy Boner who did perform this activity for Alan Baer....
She states that she witnessed a young boy sitting on Bob Wadman's lap at a party and that he had his hands between the boy's legs....
She also discussed the activities of Harold Anderson. She said that he likes young boys and that his "regular" boy is named Jeremy (Last name unknown) and that he was approximately 14 years old when she witnessed them together. She said that Harold Anderson gives money to boys and that she has seen young boys performing oral sex on him. She stated that she has witnessed Danny King performing oral sex on him. . ..
I asked her to elaborate on the superintendent she mentioned as attending the "parties." She said that he lives approximately 40 miles from Omaha, is gay, older, balding, has bad teeth, and stands approximately 6'. She stated that this individual had sex with Troy Boner at the Twin Towers apartment and that he gave money to Troy for this....
Corroboration: You will later see that another witness, Danny King, identifies Deward Finch, former superintendent of the Fort Calhoun High School as an individual who he had sex with on many occasions. He also fits the description as related by Alisha.
Other information from Alisha was that Troy Boner and Danny King were taken to Council Bluffs by adult males for sexual purposes.
Corroboration: Troy Boner and Danny King related these events in detail in their respective videotaped statements.
Alisha also describes a forced sexual encounter which occurred at the French Cafe in August of 1985. Present were five boys from Boys Town, Tom McKinney [sic], and Judge Theodore Carlson, among others. Larry (Lnuk) told her that "someone is waiting downstairs and you'd better be good." She performed oral sex on Judge Carlson, and the encounter lasted approximately 20 minutes....
It should be mentioned at this time that the individual identified as Larry (Lnuk) is known as Larry King's "henchman". I have been unable to determine his last name. It wasn't usual for the individuals in this group to divulge their last names, and it was also common to use aliases....
Please note that Alisha became very upset when discussing her sexual activities with Bob Wadman, and with other individuals. The video was stopped several times so that she could compose herself.
She said that Wadman had told her that Larry King "owes him a lot" and that "he had done a lot for Larry King." ...
She said that she was told that [Omaha Mayor] PJ. Morgan supplies a lot of drugs....
Alisha took numerous plane trips at the direction of Larry King for sexual purposes. These trips include trips to Los Angeles, Kansas City, Pasadena, CA. On these flights were other minors. Information regarding these flights is as follows: ...
Private Flights:
The first private flight that Alisha was on occurred in March of 1984.... The plane landed at a small airport in California.... Upon their arrival, Danny and Alisha were taken to an Embassy Suites type motel, and two businessmen came into their room. One man had sex with Danny, and one man had sex with Alisha. They received no money. Please note that she said that Larry King had ordered her to take this trip.
The man that Alisha had sex with she describes as "extremely weird." He hurt her, forced her to have anal sex, slapped her and threw her around. He took out a knife and threatened her if she didn't perform oral sex on him, and threatened to cut off her nipples. She was afraid and crying.
She stated that when the men finally left, that they were both very upset. She described Danny as being very upset and angry. Their ordeal with these two men lasted approximately six hours. Also, they were both afraid to take a shower for fear that the men would come back....
Corroboration: Troy indicates in his video statement that Alisha, after this ordeal, was extremely upset and "smelled" and was a "mess." ...
When Alisha was asked who participated and who was aware of the transportation of kids across state lines for sexual purposes, she said that Larry King and Alan Baer were aware of this. It is probable that other adults were also aware of this. She stated that Bob Kerry [sic] knew about these activities and that Larry (Lnuk) had told her this. Larry (Lnuk) also indicated that Bob Kerry knew about the closing of the Franklin Credit Union before it fell.
Other issues discussed regarding Bob Kerry consisted of Alisha's statements that she had a friend who works for Dixon and Dixon law firm who is responsible for maintaining the keys to the file room. Her name is Jackie Compton, and she has told Alisha that there are various documents with Bob Kerry's signature on them that relate to the Commonwealth ordeal. This is explained in detail in the first video taped statement....
Alisha discusses the friendship between Judge Carlson and Tom McKinney, Assistant Douglas County Attorney. . . .
She stated that McKinney and Carlson are also involved in drug activity .... She also knows Peggy* West, the daughter of Gary West who is a good friend of Larry King's. She said that Peggy may have also been exploited and/or is aware of these activities. She is also acquainted with Gary West and indicated that he is a bartender at the Max Bar in Omaha.
When questioned about satanic cult activity, she said that Troy Boner and Danny King were involved in this activity,and that at one time Danny King was extremely "anti God."...
She also mentioned a house in Leavenworth where there is, or was, a pentagram drawn on the kitchen floor. She also saw satanic pictures on the walls of this house .... In addition she stated that she saw Bob Wadman coming out of this house on one occasion.
Corroboration: Loretta Smith mentioned that a person actively involved in cult activity was a male identified as Kings Horses. She [Alisha] said that Larry (Lnuk) who is Larry King's "henchman" is known as Kings Horses.
She also indicated that she knows an individual identified as James Teddy Broom. She describes him as black, with greasy hair, a flat nose, slitted eyes, and that he "walks funny." Said that he does the "dirty work" for Larry (Lnuk).
Corroboration: Loretta indicates that Teddy Broom was instrumental in satanic cult activity, and threatened her if she said anything about what happened at the meetings. Loretta Smith also indicated that Teddy Broom raped her mother, Jackie Smith*, as a warning to her....
She knows an individual named Frank Kessler who she thought was "very strange" and who always talked about the occult, but wanted to get out of it.
You will also see a transcript of a taped inteview from Lisa Sutherland*, who discussed satanic activity and teenage prostitution in Omaha. She too mentions Frank Kessler as being involved in cult activity.
She also knew of a social worker identified as Florence Davis who may be associated with this group of people. She stated that Larry King could "get anybody out of anything" by offering them bogus jobs. It is also possible that Florence Davis may be involved in "funneling kids" into certain foster homes. See a transcribed interview with Millie Boggs* the Director for the Omaha Children's Home for further information regarding Florence Davis....
Caradori filed a back-up report for this part of the precis, entitled "Taped conversation with Gary A. Caradori and Millie Boggs."
GC: But I'm also interested in when I asked you about what's her name, she was living "high on the hog."
MB: Florence Davis?
GC: Florence Davis.
MB: See, I'm not. ... Let me tell you a little bit about what I know about Florence. I mean, Florence just used to be a line worker. I mean she was a worker like I am.
GC: I want you to talk about that because her name has come up. Just because a person's name has come up doesn't make you guilty either.
MB: No.
GC: And maybe it came up because she had the position at the time. And doggone it, I'm going to get her pulled on the carpet and have her explain herself from back then.
MB: You'll never get her back here.
GC: A subpoena might bring her back.
MB: Well maybe. I hear she's in San Francisco. I don't know. All of a sudden one day she was just there and the next day she's gone. And nobody can understand how Florence gave up this good job being a supervisor which would, I think had always been her goal....
In late June of 1983 I attended a meeting at the state with Florence Davis, the McArthur children's worker, and Lloyd Linquist, the permanency planner. Basically, the purpose of this meeting was to tell me that the state would not change their minds and that they felt they were in a better position to judge what the McArthur children needed, and that they were going to proceed with adoptive plans of placing the children with the Webb family in Fort Calhoun.
A few days later I went with Florence Davis to the Webb home, as Florence thought I would feel better about the placement if I had the opportunity to meet the Webb's. Quite to the contrary, after meeting with Mr. and Mrs. Webb, I was more concerned than ever as I did not feel that this was a proper home for these three children....
Something that I think is extremely suspicious is that about the time that the King mess was surfacing, Florence Davis suddenly left the state, almost overnight, and supposedly is living in California. A short time later, Lloyd Linquist went on sick leave and was gone for many months. And then about the time he was to return, he also resigned. While he was on leave I understand that he took a trip to Tahiti. I think personally that Lloyd Linquist and Florence Davis know a lot about the situation regarding the abuse of these children and they should be found and questioned....
One time when Florence was working for the state, I believe before she became a supervisor, I noticed that she declared bankruptcy while she was living in her new condo and had her new car. However, after that whenever I would see Florence it seemed like she was dressed extremely well and did not appear to have any monetary worries, although I am not a friend of Florence's and I did nothing with her socially.
Lloyd Linquist also was impeccably dressed, although someone told me that he had only rented a room at the Grace Bible Institute and actually didn't even have an apartment. ... I thought it was interesting that Lloyd could take trips to Europe which I know that he did in the years that he was a permanency planner, and other exotic vacations on the salary that he was paid by N.D.S.S.
Caradori's summary of the testimony from Alisha resumed:
During the second video taped statement, Alisha again discussed the pornography aspect of this case. She said that Rusty Nelson develops his own photographs and that he would more than likely have the negatives of the group and individual pornographic photos, possibly to blackmail Larry King at a later date. She reiterated that Rusty Nelson and Larry King would "direct" these photographic sessions. She said that she would cry and try to get out of participating.in these sessions, but she would be "slapped around" if she didn't participate....
She also states that Alfie Allen had been given a Mercedes Benz by Larry King, and that Alfie was very upset when the money stopped coming in because of the closing of the Franklin Credit Union....
She again discussed the parentage of her child. She said that she is 99.9 percent sure that her child is Bob Wadman's, and that conception occurred in August of 1984. She had sexual intercourse with him on August 8th, August 10th, August 17th, and August 22nd. All of these sexual encounters occurred at the Starlight Motel, with the exception of August 10th which occurred at the Twin Towers apartment. ...
Caradori recommended 62 individuals and documents to be subpoenaed on the basis of Alisha Owen's testimony. He finished the precis with a list of alleged perpetrators, named by her:
1. Larry King
2. Bob Wadman
3. Harold Anderson
4. Alan Baer
5. Deward Finch
6. Peter Citron
7. Judge Theodore Carlson
Owen provided Caradori the name of Troy Boner as a victim witness who could testify on the same events. After beginning a search for Boner, Caradori received a telephone call from him at 4:40 a.m. on November 25, 1989. From 4:30 p.m. later that same day, until 10:22 p.m., Troy Boner told his story.
Troy Boner
Troy then stated that he met Larry King in July of 1984.
He stated that Alan Baer had talked to Larry King about him, so Larry King approached him in July of 1984 in The
Max Bar and grabbed Troy's crotch.... Since it was apparent that Troy had met Alan Baer before meeting Larry King, I asked him when he first met Alan Baer. He said that he first met him in August of 1983 through a friend of his named Tim Prescott*. He said that Tim picked him up in Alan Baer's car and told him how he could make some money. Tim took Troy to Alan Baer's residence in the Twin Towers which Troy stated was apartment #201....
He said that he knew he was there so Alan Baer could get acquainted with him, and so he could make some money. He thought that he would let Alan Baer perform oral sex on him for him because Tim Prescott had told him what the "arrangements" would be....
He said that he walked back to Alan Baer's apartment later that afternoon at Alan Baer's request. Alan met him at the door in a yellow Ralph Lauren bathrobe. Alan Baer asked him to get undressed. (Troy stated that he thought he was going to get $50.00.) He started undressing in the hallway and Alan Baer asked him to go into the bedroom. Alan Baer then got undressed and a sexual encounter ensued, including mutual masturbation and oral sex. After this sexual encounter, they took a shower together and he received $400.00 in fifty-dollar bills. Alan Baer told him to call him that next Tuesday.
Troy met with Alan Baer again five days later, after Troy had called him from his residence in Council Bluffs to make the arrangements.
Corroboration: Get the telephone records for his residence in Council Bluffs at this time....
On February 5, 1984, Alan Baer took Troy and another young kid to Des Moines, Iowa. The other boy's name was Shawn (Lnuk) and he was approximately 12 to 13 years old. They drove to Des Moines in a tan Mercedes, which Troy thought might possibly be rented. They stayed at the Savoy Hotel in downtown Des Moines. Troy and Shawn stayed in the room at the hotel while Alan Baer attended some business meetings. The three of them had several sexual encounters while in the hotel. At one point, Troy left the hotel and upon returning found Alan Baer asleep holding Shawn.
Troy's mother had filed a missing persons report while he was in Des Moines. He then called the mother of his girlfriend and had her pick him up in Des Moines. He left without Alan Baer's knowledge.
Corroboration: Check for a tan Mercedes possibly leased! rented to Alan at this time. Check to see if Loni Boner did file a missing persons report at that time. Who was Troy's girlfriend at that time? Check her and her mother to see if they did pick up Troy in Des Moines. Check the hotel records at the Savoy Hotel for that time period....
In July of 1984 Troy was approached by Larry King at the Max Bar. Larry knew what Troy looked like from the pictures he had received from Alan Baer. Larry King grabbed his crotch while at the bar. Please note that he was a minor at this time....
Larry King then had Troy move into the Travel Lodge Inn. . .. During this three weeks, Larry would stop by at various times, usually in the afternoon, for sex with him. They would perform oral sex on each other, and Larry King performed anal sex on Troy. Larry King also wanted Troy to urinate on him in the bathtub, which he did....
In May of 1985 he [Troy] talked with Danny King about how Danny could make some money. Danny initially objected and said he did not want to get involved, but he later changed his mind. Troy had also told Alan Baer about Danny King. Troy then took Danny to Alan's apartment at the Twin Towers during which time Alan Baer asked Danny some questions about himself. Alan Baer then told him [Troy] to leave. He waited for approximately three hours before Danny came out of the apartment, and Danny showed him $300 that he said Alan Baer had given him. Danny said no sexual activity went on, but Troy stated that he later found out that Alan had anal sex with Danny.
In June or July of 1985, he went to a party where a 15 year old boy was in the center of the room with his pants down. An adult male was inserting beads into the young boy's rectum. Other adult men were seated around the young boy masturbating. Troy was ordered at this party to play with the young boy's genitals.
He stated that he thought the adult male who was inserting the beads into the young boy's rectum was a police officer. An individual named Mark* (Last name unknown) had told.him that this adult male was a police officer. The alleged police officer masturbated on the young boy in the center of the room ....
Troy also stated that an individual he identified as PJ. Morgan was there, also masturbating while the young boy was being exploited in the middle of the floor. ...
He stated that he met Alisha Owens in February or March of 1984. He stated that Alisha did lose her virginity with him, and that he did introduce her to Bob Wadman at a party held in an office in the Woodmen Tower ....
When asked for further information about Bob Wadman, he stated that he likes to have sex with young kids and that in addition to Alisha Owens, there was another young girl he was involved with identified as having the last name of Hovel *, who was a runaway from Chicago. He stated that the last time he saw this girl was in May of 1986.
He stated that although he did not take any trips with Wadman, that Wadman did take trips with Larry King....
He said that the reason he went on this flight was to have sex with an individual named Ron Gilbert. He stated that Ron Gilbert is a movie producer for a television series. He stated that he received no money for having sex with Ron Gilbert, and that he and Larry King also had sex while on this trip....
The next trip occurred in a private plane to California. Present were Troy, Danny King, Alisha Owens, two smaller kids, and Larry King.... he said that he knew Danny and Alisha were going to be used for sexual purposes, even though neither one of these individuals wanted to go. The two smaller unidentified kids got dropped off by Larry King and Troy at two different locations. He stated that he believes that these two kids were "sold." ...
Ron Gilbert
He stated that Ron Gilbert, the television producer from
California, is also involved in making pornographic movies.
He described Ron Gilbert as an older, Jewish man. Troy also discusses Robert Andreson [sic] having a collection of pornographic photographs. He feels that this individual works for Union Pacific Railroad and that he lives in Lavista, NE....
He also stated that the following individuals supplied illegal drugs:
Larry King
Alan Baer
David (Lnuk)
John Points
Bob Wadman
Mark* (Lnuk)
Troy also stated that Bob Wadman brought two grams of cocaine to the party in North Omaha....
Troy stated that Claire (Lnuk), Alan Baer's secretary, would set up "appointments" with kids for Alan Baer. He described Claire as an older woman, petite, with gray hair that she wore in a bun. Troy stated that Claire knew who he was.
He stated that Larry King and Bob Wadman and a couple of other men took a trip somewhere and with them were two young boys. He stated that the two young boys did not return from the trip....
When asked what other kids were involved in these activities, he stated the following:
Rusty (Lnuk)
Danny King
Alisha Owens
(Fnuk) Hovel*
[three others]
On December 4, 1989 and December 5, 1989, I took Troy to the Omaha, Nebraska, and Council Bluffs, Iowa, areas in order to identify the various locations he made statements about in his videotaped statement. See Exhibit PH-I for the photographs and his identification of these locations. See T-18 for the daily reports covering these two days.
On December 22, 1989, I video taped Troy again for corrections that he wanted to make reference certain details in his first video taped statement....
It is recommended that the following individuals and! or documents be subpoenaed reference the statements and allegations made by Troy BONER. [60 names and references are listed.]
Perpetrators:
Alan Baer
Larry King
P.J. Morgan
Bob Wadman
Ron Gilbert
Henry (Lnuk)
Bob Andresen
[two others]
• • •
On December 3, Caradori taped a third victim-witness.
Danny King
At approximately 9:32 a.m. the interview began with James Daniel King in room 422 at the Residence Inn. Please note that approximately five hours of video was completed. It was quite apparent to this writer that it was very difficult for Danny to divulge the events of his past....
It is apparent that there are some discrepancies between the statement of Alisha Owens and that of Danny King, however this writer feels that Danny was heavily involved with drugs during this time period and wasn't quite sure as to certain details. As a matter of fact, Danny did not know what month follows December...n.
At this time, Danny indicated that he was relieved and wanted to "go forward." It is this writer's opinion that Danny is finally coming to grips with reality. He also indicated that this is the first time he was ever told anyone about the events that have happened to him.
From Danny King's videotape:
Danny said that he first met Alan Baer toward the end of 1983. This would have made Danny approximately 13 to 14 years old. He met Alan Baer through Troy Boner....
Danny met with A approximately two weeks later. A and Danny drank schnapps and both participated in oral sex. Danny received 50.00 from A. The time was after school at approximately 5 p.m. He would have been 13 or 14. This occurred at A's residence ....
Danny then saw A for approximately seven months, every week. The same events would occur as stated above....
In April of 1984 Danny met Larry King at A's residence. Cocaine was used by A and Danny. LK and Danny then went into the bedroom. Danny was lying on the bed and LK had anal sex with Danny. It hurt Danny and Danny made him stop. Danny then gave LK oral sex but spit LK's ejaculation. LK then hit Danny with a shoe on the side of the head because he did not swallow it. Danny received no money for this occurrence....
At this time Danny started seeing A again and A introduced Danny to "shooting up" cocaine. A gave him a shot in the arm and Danny got sick. A shot up also. Both participated in oral sex and Danny received $50.00 ....
Danny mentioned an individual named Larry, Jr. who is LK's right hand man....
When shown photographs, Danny identified Deward Finch as being "Chuck" who Danny had engaged in sex with quite a few times.
Perpetrators:
Larry King
Alan Baer
Deward Finch
Bob Andreson [sic]
Gary (Lnuk)
• • •
At a press conference on December 18,1989, Senator Schmit
announced that he had obtained videotaped testimony from
three victim-witnesses in the Franklin case. It had been viewed
by himself and the other members of the Franklin committee,
Senators Bernice Labedz, Dan Lynch, Jerome Warner and Dennis
Baack. "Members of our committee are dismayed," Schmit
wrote in a letter to Attorney General Spire, released at the
press conference, "by the fact that no state or federal investigative
bodies interviewed any of these new witnesses we have,
even though they were discovered by our investigative efforts after a fairly short time and with a very small budget. ... It
is the opinion of all committee members that the activities
described and the personalities involved scream out for action,
whether statute of limitations problems are involved or not.
. . . As a result of the new evidence and new investigations,
we have all become very, very concerned." Schmit expressed his personal inclination to release the tapes in toto, for the sake of "the safety of our witnesses" and a speedy investigation. He abided by the committee consensus, however, to hold them back.
By December 1989, local, state and federal law enforcement had received copies of the videotapes of Alisha Owen, Troy Boner, and Danny King. Some officials, notably Douglas County Sheriff Dick Roth, said they believed the victim-witnesses. After watching five hours of the tapes, the Associated Press reported in February 1990, Roth "said he found the witnesses' statements to be credible." But there was no apparent move toward prosecutions.
to be continued...next...
THE DECAMP MEMO
If anyone cares, I have first hand information regarding all of this. Nobody has the courage to ask though.
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