The Franklin Scandal: Elite Pedophile Ring That Washington Buried

Despite overwhelming evidence and testimony, the guilty were found innocent and the case was swept under the rug. Does this remind you of anything?

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“Homosexual Prostitution Inquiry Ensnares VIPs with Reagan, Bush.”

This article was published in the Washington Times in 1989 and was written by award-winning, Pulitzer Prize nominated journalist Paul Rodriguez. After years of research, Rodriguez had compiled the necessary evidence to publish such claims.

He had uncovered a homosexual prostitution ring tied to the White House. One central figure, Craig Spence, a Republican powerbroker, had the political clout to bring prostitutes on midnight tours of the White House. The report names multiple White House insiders, military personnel and members of major media institutions as clients, based on credit card records procured by Rodriguez.

“Among the client names contained in the vouchers – and identified by prostitutes and escort operators – are government officials, locally based US military officers, businessmen, lawyers, bankers, congressional aides and other professionals...
Although the confiscated material was turned over to District police on the scene, witnesses and law enforcement agents say the Secret Service kept one box containing names and other information about high-level government officials who were clients of the male escort business.
District police officials say that, to their knowledge, this is the first time the Secret Service has ever become involved in such a raid in this area.” – Washington Times

Craig Spence would throw extravagant parties for the Washington D.C. elite, with ‘call boys’ freely available for interested party-goers. Various associates, including multiple of Spence’s body guards, came forward and admitted that his house, where the parties were located, was thoroughly bugged with audio and video recording equipment, with the intent of extortion and blackmail of those who ended up in compromising positions.

Spence was somewhat of a mystery man. What type of employment did he have? No one knew for sure, though Spence himself would often boast of his important connections. One of his associates told the Times:

“He described Mr. Spence as ‘strange’, saying he often boasted that he was working for the CIA, and on one occasion said he was going to disappear for a while ‘because he had an important CIA assignment’. According to the businessman, Mr. Spence told him that the ‘CIA might double-cross him’, however, and kill him instead and then ‘make it look like a suicide.’” – Washington Times

Indeed, Spence would die just months after the interview, of an apparent suicide, but not before admitting that his parties were bugged by friendly intelligence assets which he refused to name. The investigation by Paul Rodriguez and his associates would also screech to a halt after all of the evidence was either classified by the Secret Service or tied up in red tape. Someone in a high position of power clearly did not want the full extent of the revelations to become public.

Homosexual prostitution on its own isn’t shocking, and depending on your conceptions of morality, no different than the heterosexual prostitution that is likewise rampant in Washington D.C. with the only tangible difference being the repercussions of entrapment (especially for Republicans). However, one particular part of the investigation leads us down a shocking rabbit hole:

“In addition to credit-card fraud, the investigation is said to be focused on illegal interstate prostitution, abduction and use of minors for sexual perversion, extortion**, larceny and related illicit drug trafficking and use by prostitutes and their clients.” –** Washington Times

In fact, the name Craig Spence would appear repeatedly in another major prostitution inquiry, this one centered around children, known today as the Franklin Scandal, one of the darkest stains in the history of the United States...

..To Franklin, Nebraska

The story of the ‘Franklin Scandal’ begins with Lawrence E. King, one of the fastest rising Republican stars of the 1980’s. He was a public figure in Franklin, Nebraska who ran the Franklin Federal Credit Union, along with a series of restaurants and bars. These various businesses apparently furnished King’s lavish lifestyle of private jets, extravagant parties and an entourage of assistants and bodyguards.

Larry King, as he was known, was accused by seven children of child abuse and prostitution before he sang the National Anthem at the 1988 Republican National Convention. But despite various petitions to local police and the FBI, no official investigations were ever undertaken.

One of the allegations began from the serious abuse of children at the hands of Jarret and Barbara Webb, the former a member of the Franklin Credit Union board; the latter a cousin of King, who adopted various foster children and would proceed to subject them to horrific physical, emotional and sexual abuse. The girls housed at the Webbs told of being taken to various parties in the Franklin area where Larry King and other important local figures sexually abused them. One of the girls, Eulice Washington, recalled being flown on King’s private jets to be abused across the country:

Among the first accusers was Eulice Washington, who claimed King flew her to out-of-state pedophilic orgies. She had been adopted by relatives of King’s in the 1970s. Her new ‘mother’ was King’s cousin Barbara Webb, and her new ‘father’ was husband Jarrett Webb, who sat on the board of the Franklin Federal Credit Union. To Eulice Washington, King had been Uncle Larry. ‘Larry King set up the pedophile ring,’ says Eulice. ‘From my knowledge and from what I saw go down, he was the man who got it moving and rolling. Everything went through him. He loves boys. He loves them like he shouldn’t. – The Franklin Scandal: A Story of Powerbrokers, Child Abuse and Betrayal

Despite Eulice passing various lie detector tests, charges were never pressed against the Webbs. The Foster Care Review Board was the first organization to come across various cases of abuse from Eulice Washington and others. They wrote numerous letters to Nebraska’s Attorney General Robert Spire urging an investigation, but their pleas were ignored.

The FCRB testified to the State Legislature’s Investigative Executive Review Board Subcommittee in 1988 that:

FCRB Chairman Dennis Carlson: The nature of these allegations are something that is going to shock the Committee. They deal with cult activities... 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.

State 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 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?

FCRB Member Carol Stitt: Well, the common thread is Larry King.

Remmers: Yes, that’s what I mean. It all goes back to him? OK.

Stitt: Yes, he seems to be more the organizer, or the high-class pimp, I mean if that helps fit this together.

Larry King would also be linked to embezzlement before he sang the National Anthem at the 1988 Republican National Convention, but again avoided an investigation. The facade unraveled in November 1988, when an IRS investigation revealed that King had stolen over $40 million from the coffers of the Franklin Federal Credit Union. The financial corruption alone shocked the city, but soon reports started circulating that in addition to various fraudulent accounting documents, investigators found a huge stash of child pornography as well.

More rumors of sexual abuse began to arise, with multiple allegations that Larry King was using children from Boys Town, the nearby Catholic charitable institution for orphaned youth. His yellow sports car was notorious on the Boys Town campus, where he would drive around and pick up minors for his pedophilic activities. The Catholic management denied any connection to King, but financial records showed that Boys Town had a close-knit relationship to the Franklin Federal Credit Union. Federal and local authorities immediately moved to close the investigation and seal evidence, claiming that allegations of child abuse were unfounded.

The authorities backtracked and stated that they had done everything in their power to investigate these claims. Attorney General Robert Spire said:

We did receive some sensitive information in July. My office acted promptly and professionally and nothing was sat on.

However, it would later be revealed that no authorities ever interviewed Eulice Washington and other children noted by the FCRB until three years later, after they made their report public.

Despite this, Omaha Chief of Police Robert Wadman stated to the press that:

“Every step that should have been taken, was taken.”

However, Chief Wadman would later confess that he had never contacted Eulice Washington, one of the children abused at the hands of Webb, nor the Child Protective Services department that handled Washington’s claims.

Chief Wadman would later be identified as a child abuser at King’s parties by four different victims.

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Obstruction, Threats and Murder

In an early police investigation, low level police officers attempted to keep their inquiries a secret from Chief Wadman, seemingly knowing that he would be adamant about shutting down their investigation. Nebraska Foster Care Review Board official Dennis Carlson related Omaha Police Officer Carmean’s testimony to the Legislature’s Executive Board hearing:

Officer Carmean told me some things which I found to be somewhat startling. I asked if he was interested in information regarding Larry King and he said, yes we are, we’re conducting what he called a supersensitive investigation of Larry King and he said this investigation was so supersensitive that they were not even using the steno pool in the Omaha Police Department. They were handwriting their police reports, and he also told me that Chief Wadman had come to their unit and directly asked if they were investigating Larry King.... Investigator Carmean told me, we lied to the Chief and we said, no, we are not investigating Larry King. That conversation took place on July 20th of 1988.

Shortly afterward, Officer Carmean was transferred out of the Robbery and Sex unit and the investigation stalled. On July 5, 1989, in a lengthy “Inter-Office Communication” to Omaha Public Safety Director Pitmon Foxall (a cousin of Larry King), Chief Wadman announced that Officer Carmean needed a mental health evaluation.

Many were not convinced of the Police Department’s conclusion that there was no substance to the abuse allegations, including a group of 12 State Senators who decided to create their own parallel commission to investigate the charges, lead by Senator Loran Schmit. Following the money trail, Schmit and his team quickly found that it could be traced directly to the sex parties and child abuse. It became clear to Schmit that he was uncovering some serious ‘dirty laundry’:

I received a phone call on the floor of the legislature. The caller would not identify himself, but he said, Loren, you do not want to have an investigation of the Franklin Federal Credit Union, and I asked, who am I speaking to? And they said, that doesn’t matter, but you shouldn’t have that investigation. And I said, well, why not? And he said, it will reach to the highest levels of the republican party, and we’re both good republicans. – Loran Schmit

Schmit wasn’t the only one to receive threats. The lead investigator of the State Senator’s Committee, Gary Caradori, had also specified that he had received a series of threats, such as obvious tampering with his vehicle, as to send a message.

In early July 1990, Caradori made a trip to Chicago to meet with a secret informant who had evidence which would ‘blow the lid’ off the case, and reportedly confided to a friend that he was one step ahead of those who wanted to squash the investigation, saying that if ‘they’ knew what information he had, he would be killed.

Upon returning from Chicago, Caradori’s plane crashed, killing him and his son. The National Transportation Safety Board investigation found that the wreckage was scattered over a radius between 3/4 to 1 mile, indicating without a doubt that the plane broke up in the air, instead of upon impact.

Certain items were missing from the crash, most notably Caradori’s briefcase. Within 24 hours, all of the evidence was collected by the FBI and sealed.

The Paul Bonacci Trial

What information was so important that the pedophile network would kill the lead investigator and his son, in what looked like a blatant assassination? It turns out he was meeting with Russell ‘Rusty’ Nelson, a photographer for Larry King, who attended King’s parties with the intention of photographing powerful men in compromising positions with minors, in order to blackmail them later.

Like Craig Spence, King was known to throw lavish parties for the Republican elite, with underage prostitutes allegedly in attendance. Rusty Nelson was in hiding for an entire decade after the Franklin Scandal broke, but ended his silence under oath during a court hearing in 1999, in order to ‘set the record straight’. He revealed that he had a very close relationship with King and kept hundreds of thousands of photographs of King’s business dealings and parties in various locations. Most of the evidence had been confiscated, and more had been destroyed in Gary Caradori’s plane crash.

Rusty’s testimony to the District Court was very interesting. Among other events, he revealed that he personally saw Larry King place a direct call to then-president Ronald Reagan when other associates could not resolve a specific problem. He also claimed to have seen and taken pictures of the Chief of Police of Omaha Robert Wadman at various parties, engaged in various sexual acts with minors, and had once seen Wadman accept a large envelope full of bearer bonds from King.

While most of Rusty’s evidence was confiscated, he was able to provide the court with photographs that corroborated his close relationship to King, such as photographs of King inside his private jet and limousine, and alongside male strippers.

The District Court hearing was not about Rusty Nelson, but rather for compensation for one of the victims, Paul Bonacci, who had first made accusations of abuse against Larry King in 1986, two years before there was even a Franklin Scandal. The testimony given was so convincing that the judge awarded Bonacci with $1 million.

The plan was to donate the proceeds to charitable organizations dealing with child abuse, but King has never paid. Paul Bonacci suffered from Multiple Personality Disorder, a diagnosis confirmed by three different state-appointed psychiatrists, from extreme abuse he had received beginning at the age of 3. At the age of 8, he became associated with Larry King and began attending his parties as a child prostitute.

The type of abuse Bonacci underwent at the hands of Larry King is shocking:

Bonacci: “They put guns up to my head, they put guns in my mouth... Larry King sent out boys, men, to jump me, he had them pretty well beat the tar out of me from the waist down so no one would see the marks, i had my fingers broken... I can remember them burning me with hot instruments... placing stuff inside me... almost what I would call a cattle prod.”

Judge Urbom: “Done by Larry King at his direction?”

Bonacci: “At his direction. If they wanted to get something passed in the legislature, he would put some people that were against it in a compromising position, by using us boys and girls.”

One of the men in Washington that Paul Bonacci claimed abused him is Democratic Senator Barney Frank. Bonacci was also taken on the very same midnight tours of the White House hosted by Craig Spence that journalist Paul Rodriguez wrote about in the Washington Times, as a child. He claimed that immediately after the tours of the White House, he was taken to another place to be sexually abused.

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The Grand Jury Coverup

Before his untimely death, Gary Caradori had compiled a leads list of 271 victims of sexual abuse in the Franklin area, though his death precluded interviewing most, and others recanted their stories under pressure from Federal authorities, often accompanied by the threat of jail time for perjury. Along with Paul Bonacci, the investigation proceeded with three other primary witnesses, Troy Boner, Danny King (no relation to Larry), and Alisha Owens.

Both Boner and Owens recounted tales, after passing multiple state-sponsored lie detector tests, of attending hundreds of parties hosted by Larry King where they were abused by King and other prominent men in Lincoln and Omaha. The three would repeatedly corroborate each other in interviews taken under oath by Gary Caradori, initially without knowledge of each others participation in the investigation. Most of the victims claimed that they were used to transport drugs across state lines, at the demand of Larry King and Alan Baer, a prominent Omaha millionaire.

Gary Caradori once followed a lead of Alisha Owens where she claimed that she was often abused at The French Café in Omaha. He talked to the former manager on the telephone, Sheila McGuire, who told Gary that:

“We had parties in my apartment above the French Cafe. Larry King would wine and dine potential investors downstairs at the Cafe. When the French Cafe closed about 1 AM, King and his man called Parking Lot Bob-who worked for him (and was our coke connection) - would bring people upstairs to my place. If Larry King investors wanted drugs, booze, children or hookers (male or female) we’d get them. While these guests of Kings took their pleasures with the kids or whoever, King would sit and watch while he drank, did coke and played with his young boys....
One time, when this guy Irv from NYC wanted Sandra who was about 12 or 13 years old and getting her 1st period, Larry intervened when Sandra refused. King pulled out a roll of $100.00 bills and gave Sandra 5 of them. King then pulled out a small gram of coke and gave that to Sandra. Sandra finally agreed and went off to bed with Irv. King took good care of the local and out of town high rollers. If you had the money to invest at Franklin, King would cater to your most deranged perversion.
And, let me tell you another thing. The boys in the board rooms around Omaha are shitting in their Brogans. If this case gets cracked open the list of involved will read like Who’s Who. King and his crew have ruined a lot of children’s lives.”

What happened next is amazing.

Instead of indictments of the accused perpetrators to develop cases against them, both Douglas County and Federal Grand Juries ordered the thousands of files to be sealed, declined to interview dozens of witnesses, and then brought charges of perjury against Alisha Owens.

Both Grand Juries concluded that Troy Boner and Alisha Owens had indeed been abused, but claimed that the adults they testified against were innocent.

Alisha Owens was later found guilty of perjury, and sentenced to between 9 and 15 years. She ended up spending two years in solitary confinement, more than any other woman in Nebraska history, and a clear message to other victims: Stay silent.

“This is unprecedented, probably in the history of the United States. If the children are not telling the truth, particularly if they have been abused, they need help, medical attention. You don’t throw them in jail!” – Dr. Judianne Densen-Gerber, a lawyer, psychiatrist and nationally prominent specialist on child abuse, during her visit to Nebraska in December 1990

On the same day that Alisha Owens was convicted of perjury, the charges against Paul Bonacci, who told a very similar story, were dropped. Perhaps they did not want certain testimony to come to trial, such as Bonacci’s claim that Larry King would send limousines to Offutt Air Force Base and pick up CIA agents for his parties.

The Grand Jury trial was a mockery of justice, where the state-appointed attorney Samuel Van Pelt vigorously attacked the charges and mocked the allegations of the defendants. It has to be noted that a Grand Jury is a special type of proceeding where the attorney chooses all of the witnesses and what evidence is presented; there is no presentation of the defense or cross examination. A former Chief Judge of New York State once quipped that a special prosecutor could persuade a grand jury to “indict a ham sandwich.”

There are shocking irregularities with the Grand Jury proceedings. First, it never called Larry King to testify. In fact, the evidence of child abuse and child pornography has never been presented against King in any court of law. One member of the Douglas County Grand Jury claimed that the Van Pelt helped write the final report, which is illegal.

The report contained some very peculiar statements, such as “children do have the right to expect that if they exhibit reasonable behavior, they will not be abused.” (Emphasis added). It also contained blatant lies, such as the claim that Paul Bonacci’s doctor said that Bonacci was not capable of the truth, even though not only was the doctor not called to testify, he said elsewhere that he believed Bonacci’s story.

Owen’s attorney, Henry Rosenthal, found that the evidence shown to the Grand Jury was deliberately tampered with. The video testimony taken by Gary Caradori was edited to remove sections where Troy Boner and Alisha Owens corroborated each others claims. The lawyer representing originally Owens, Boner and (Danny) King claimed to have had over 100 clients who had suffered sexual abuse in relation to King and Boys Town, but then later claimed that their testimonies were all fabrications, only months before admitting she had an affair with an FBI agent who had bullied Troy Boner into temporarily recanting his testimony.

There is also the curious trend of upward mobility for a group of men who were instrumental in rigging the Grand Juries:

1. US Magistrate Richard Kopf, who deposited Lawrence King in a federal psychiatric hospital so he wouldn’t have to appear before the grand juries, and signed off on the FBI’s federal search warrant of Alisha Owen’s prison cell, became a US District Court Judge and then Chief Judge of the United States District Court for the District of Nebraska.

2. Thomas Thalken, Assistant US Attorney for District of Nebraska, who prosecuted the federal grand jury in Nebraska, became a US Magistrate.

3. Gerald Moran, who was the Douglas County Deputy Attorney who prosecuted the Alisha Owen trial became a Douglas County District Judge.

4. Robert Sigler, who was the Douglas County Deputy Attorney who prosecuted Alisha Owen throughout her multiple appeals, became the Assistant US Attorney for the District of Nebraska.

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Troy Boner

Troy Boner had recounted his testimony during this period, after receiving threats that he himself would become the victim of perjury charges. However, in 1993 he submitted an affidavit detailing his intimidation and stating unequivocally that his testimony as well as those of his peers were truthful.

I lied because I truly believed and still do believe that it was a situation where I must either ‘...lie or die’ and at the insistence primarily of the Federal Bureau of Investigation officials who were dealing with me at that time... – Troy Boner’s Affidavit

Boner repeated the allegations that the Chief of Police Robert Wadmann and the Omaha Herald editor Harold Andersen were primary players in his abuse and the abuse of his peers. He recounts the various tactics the FBI used in his intimidation, including alluding to harm that may come about to a family member if he persisted in telling his story.

Shortly after these threats, Troy’s brother Shawn was found dead from a gunshot wound. The official story was a game of Russian Roulette. Troy cites this as a primary motivating factor in coming forward with the truth in his affidavit.

“But, maybe the most important thing any honest investigator should do is to ask me, Troy Boner, or any of the other kids such as Alisha or Paul Bonacci, to take polygraph, lie detector tests SIDE BY SIDE ON THE SAME QUESTIONS WITH THE PEOPLE WE ARE ACCUSING OF THESE THINGS. Example, ask Alan Baer if he shot mainline drugs into me and if he is a major drug dealer and if he had sex with me. Ask Eugene Mahoney if he met me at a bookstore in Council Bluffs and used to regularly pay me to have sex with him as a boy. Ask [redacted] to take a polygraph test on whether he is a big time drug dealer.” – Troy Boner’s Affidavit

The polygraph tests never happened. In 2004, Troy Boner entered an Omaha hospital visibly shaken and adamant that he was being targeted because of his testimony.

The next day, he was found in a hospital room dead, drugged and beaten. The timing might be related to the reelection campaign of George W. Bush, who multiple victims claimed had attended Larry King’s parties.

Troy would round out a ‘suspicious death’ list that reached 15 names, including:

1. Troy Boner, victim who testified against his abusers, found drugged and beaten shortly after.

2. Shawn Boner, Troy’s brother, found shot in the head shortly after Troy was to testify before court. The official explanation of his death was ruled to be a game of ‘Russian roulette.’

3. Bill Baker, associate of Larry King and alleged to be involved in the production of child pornography.

4. Gary Caradori, lead investigator of the State Senator’s Committee, and his eight year old son, Andrew, killed in a plane crash.

5. Newt Copple, a primary informant of Caradori, was 70 when he ‘died in his sleep’ but exhibited no health problems before his death.

6. Clare Howard, the secretary of Alan Baer, the wealthy Omaha businessman who was alleged to be a prime member of the child abuse ring. Also ‘died in her sleep.’

7. Mike Lewis, former caregiver of victim-witness Loretta Smith. Death attributed to ‘severe diabetic reaction’ at the age of 32.

8. Joe Malek, associate of King, died from a gunshot which was ruled a suicide.

9. Aaron Owen, the brother of victim-witness Alisha Owen, died in his jail cell hours before Alisha was supposed to testify, ruled a suicide.

10. Charlie Rodgers, alleged sexual partner of Larry King, died of a shotgun wound to the head, ruled a suicide.

11. Bill Skoleski, Omaha police officer said to be secretly keeping a file on Larry King, died of a heart attack.

12. Kathleen Sorenson, foster parent of children who had escaped the Webb family, and outspoken activist on raising awareness of the abuse of the children she cared for.

13. Curtis Tucker, an associate of Larry King, who allegedly jumped out the window of a Holiday Inn in Omaha.

14. Harmon Tucker, a school superintendent in Omaha.

Conspiracy of Silence

In 1993, a television station in Yorkshire, England traveled to Franklin to uncover the truth about the tale of child abuse in Franklin, working in tandem with the Discovery Channel. It was called “Conspiracy of Silence” and the very day it was set to air, it was pulled. No explanation has ever been given, though there are rumors that an anonymous person paid the Discovery Channel $500,000 to revoke the television rights to the film.

It would only be unofficially released two years later, when someone who helped produce the video and felt it was so important it needed to be public, leaked a rough draft from the copy room to attorney and former State Senator John DeCamp. It is now available for viewing online.

Overall, eight high profile Omaha figures would be accused of sexual assault, with testimonies corroborated between victims. They were:

1. Larry King

2. Robert Wadman, Omaha Chief of Police

3. Harold Anderson, retired Editor of the Omaha World-Herald

4. Alan Baer, wealthy businessman

5. Deward Finch, Superintendent of schools

6. Peter Citron, media personality

7. Judge Theodore Carson

8. PJ Morgan, Mayor of Omaha

Of these men, only one would be convicted of child abuse, Peter Citron, on an unrelated breakout of pedophilia claims which launched a separate investigation. Before the allegations leading to Citron’s arrest broke, he was threatening to sue John DeCamp for naming him as a child abuser in a memo sent to the Omaha press.

How could such a massive and orchestrated coverup take place? It involved the FBI withholding all sensitive files, including explicit videos and pictures of the relationships between King and his associates and young children. It involved a campaign of denial by the Omaha Police Department, who’s chief was a primary member of the child abuse ring, and a disinformation campaign by Nebraska’s media, who also had important members implicated in the ring.

It involved zealous FBI agents who were self-expressed ‘good friends’ with Chief Robert Wadman. And it involved a campaign of suspicious deaths designed to silence testimony. Lastly, and perhaps most importantly, it involved an American public unwilling to believe that powerful men could be implicated in child abuse, child prostitution and drug running.

As you read both of these stories, did it remind you of anything?

History always repeats itself.

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