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On July 23, 1990, after hearing many hours of testimony, the grand jury issued an unusual and unprecedented report throwing out all of the allegations concerning sexual child abuse and labeling the charges a "carefully crafted hoax".VICTIM/WITNESSES NAME PROMINENT CITIZENS AS PERPETRATORS--Eighty children initially came forward as a result of newspaper publicity of the raid and subsequent stories in the local news.
Two of the four victim/witnesses, Troy Boner and Danny King, recanted their testimony.On January 30, 1990, Nebraska State Attorney General, Robert Spire, called for a grand jury to investigate allegations.February 6, 1990, former County District Judge Samuel Van Pelt was appointed a special prosecutor for the Douglas County Grand Jury, which convened on March 12, 1990.The primary purpose was to provide loans to minorities. "Larry" King, Jr., (a black man, not television talk show host) and fast-rising "star" in the Republican party, became manager and principle executive.Larry King was indicted by a Federal grand jury on May 19, 1989 and later tried and convicted of fraud and income tax evasion directly related to the Franklin Credit Union matter. FBI- IRS RAID--On November 4, 1988, the Franklin Credit Union was raided and closed by the FBI and the IRS. Shortly thereafter, reports began to circulate concerning pornography, videotapes, and photographs which had been confiscated from the Franklin Credit Union by the FBI.Other children who were auctioned off were placed in campers after being drugged to ensure that they would be asleep in the event that the camper was stopped by the police. Things that could possibly use to incriminate somebody or blackmail someone." Rusty Nelson’s existence was effectively denied before the Legislative Committee by various witnesses, investigator for the State and others.
On one occasion, Bonacci recalled a DEA (Drug Enforcement Agency) plane that was used to transport the children. When John De Camp asked Rusty Nelson about this, he explained that he was told by FBI agents to disappear; "I believe they were the ones that were also involved in this case." He said that some of his supporting documents were taken from him by "supposedly FBI agents".
Bonacci told me that when he was 10 to 14 years old, he was used as a decoy in malls, parks, etc., to lure other children his age near an automobile so the adult members could grab the victims and force them into the car.
Paul and another youth would then jump on the victims and place a chloroform cloth over their mouth and nose.
Gunderson was later informed by a Michigan private investigator of an other missing child case that he had knowledge that a barn outside of Lincoln Nebraska was also used to auction off children on at least one occasion Paul Bonacci reported having attended six auctions in which as few as six, and as many as 36, children were auctioned off. Rusty Nelson also stated that, based on his close affiliation with Larry King, he believed King "had some association with the Contra ordeal through Michael Aquino, head of the "Temple of Set" (See Nelson’s statement below).
(See section on Johnny Gosch below for more on child auctions). You’re telling us under oath that you met and gave materials to Gary Caradori in Chicago that did what? Well, it would have, if it would have got here, probably blew everything wide open. GARY CARADORI , KEY INVESTIGATOR OF FRANKLIN, DIES IN PLANE CRASH--The evening of July 11, 1990, Gary Caradori, the investigator for the Nebraska State Legislature, Special Committee, called Senator Loran Schmit, Chairman of the Committee, from Chicago and told him he had the "smoking gun".
During her prison term, she was in solitary confinement for a period longer than any female citizen in the history of the State of Nebraska.