Did the CIA collect sexual blackmail information on the Reagan and Bush administrations in the 1980s, secretly controlling the country? Is the CIA continuing to do this today with front men such as the late financier Jeffrey Epstein? Was the Franklin Scandal the tip of a Satanic iceberg that continues today or the crazed QAnon of the 80s or both?

Nick Bryant Web Site: https://nickbryantnyc.com/

Nick Bryant YouTube Channel: https://www.youtube.com/channel/UCL-EuWGMznqwn7AomOPXNjQ

Introduction

On November 4, 1988, the National Credit Union Association (NCUA) and the FBI shut down the Franklin Community Federal Credit Union in Omaha, Nebraska, quickly determining that about $40 million had been embezzled from the credit union. The investigators indicted the credit union manager Lawrence “Larry” E. King, a gay African-American Omaha native, Republican activist, and gifted singer who performed the National Anthem at the 1984 Republican Convention. Amongst other things, King claimed to be a friend of President George H.W. Bush (Bush I), showing off a picture of Bush with him. King was eventually convicted of embezzling the missing money and other financial crimes.

Against the backdrop of the massive Savings and Loan (S&L) and junk bond scandals of the late 1980s, ultimately costing taxpayers about $200 billion, the missing $40 million was a drop in the bucket. But allegations of pedophilia, prostitution, pandering of underage boys and girls to powerful business and political figures and even Satanic ritual abuse by Larry King and his associates had been accumulating for years in the Nebraska foster care system where King’s cousin and her family “adopted” several foster children who reported substantial abuse to the authorities.

The Nebraska State Senate established a committee, “the Franklin Committee,” to investigate both the financial scandal and the allegations of sex crimes. The committee hired a private investigator Gary Caradori who managed to find at least four additional alleged victims with similar stories: Alisha Owen, Troy Boner, Danny King and Paul Bonacci. The federal government, state of Nebraska, and Douglas County (Omaha) empaneled three separate grand juries to investigate.

The grand juries, the FBI, and the Nebraska State Patrol (NSP) soon focused on an alleged conspiracy by Gary Caradori and the alleged victims to get a lucrative book or movie deal and/or lawsuit settlements by accusing numerous powerful figures in Nebraska of sex crimes including Omaha Police Department (OPD) Chief Robert Wadman, Omaha World-Herald (the largest paper in Omaha) publisher Harold Andersen, department store heir and millionaire Alan Baer, and a number of others.

At least according to his family, friends, and colleagues, Caradori flew to Chicago with his eight year old son AJ, ostensibly to attend a baseball game, to acquire actual blackmail photos or video from Rusty Nelson, the alleged blackmail photographer of King’s sex and blackmail ring. Caradori’s plane disintegrated or blew up mysteriously on the way back to Omaha, killing Caradori and his son. No blackmail photos or videos were recovered from the wreckage according to official reports.

Acting on the grand jury report, the Nebraska authorities successfully convicted Alisha Owen of perjury. At least two of the victim-witnesses, Troy Boner and Danny King, recanted their stories under interrogation and testified against Owen, claiming Caradori had conspired with them to make up the original stories in search of movie deals and legal settlements.

The Franklin Committee was shut down. John W. DeCamp, a former Nebraska state senator involved in the investigation, wrote a book The Franklin Cover-up: Child Abuse, Satanism, and Murder in Nebraska alleging a massive cover-up. DeCamp linked the scandal to the CIA, the Iran-Contra scandal, and Satanism. Theories about the scandal proliferated on the Internet.

Nick Bryant’s The Franklin Scandal

Nick Bryant’s The Franklin Scandal: A Story of Powerbrokers, Child Abuse, and Betrayal devotes 629 pages to the scandal, focusing on the alleged victims with a hefty 154 page chapter “State vs Owen” on Alisha Owen and her perjury trial. Bryant traveled to Nebraska many times over several years, interviewing and befriending many of the alleged victims and tracking down several additional alleged victims starting from a lengthy list of possible victims compiled by Gary Caradori before his death.

This is a very long book with extensive information on some aspects of the scandal, especially the alleged victims and their stories. There are several sections with fairly explicitly discussions alleged sado-masochistic encounters and sex parties that may be difficult for some readers.

The book is organized in a loosely chronological order, but jumps around disconcertingly between chapters and sometimes sections. For example the chapter on Gary Caradori includes Caradori’s death and the end of the Franklin Committee (state senate). The subsequent extremely long “State vs Owen” chapter jumps back to the grand jury investigations when Caradori was still alive, following Alisha Owen instead of Caradori.

I came away from reading the book feeling that some of the claims were probably true. There was a cover-up and Gary Caradori was probably murdered.

That said, there is clearly reasonable doubt, indeed more than reasonable doubt. There are no pictures or video, DNA test results, or other solid forensic evidence supporting the allegations. The book opens with a wild goose chase with alleged blackmail photographer Rusty Nelson that never produced any pictures, film, or video that Nelson claimed he had stashed in remote locations in Colorado.

The alleged witnesses — mostly victims — all have significant credibility issues: criminal records, psychological problems, drug use, confessed involvement in highly illegal activities, and changing and contradictory stories. This is particularly true of Paul Bonacci who has reported some of the most bizarre experiences including Satanic ritual abuse claims and was diagnosed with Multiple Personality Disorder (MPD) — now known as Dissociative Identity Disorder (DID) and Rusty Nelson, the alleged blackmail photographer whom Bryant has caught lying to him repeatedly according to the book.

The book actually provides very limited information on the named alleged perpetrators other than Larry King: millionaire department store heir Alan Baer, Omaha World-Herald publisher Harold Andersen, backroom Nebraska political figure Eugene Mahoney, Omaha Police Chief Robert Wadman, and others. This may be to avoid libel lawsuits, but one would expect these people to have other skeletons in their closets if the Franklin allegations are true, a form of partial corroboration of the allegations. One person named by the witnesses, Omaha World-Herald reporter Peter Citron, was convicted of child molestation independent of the Franklin investigation for example.

https://www.upi.com/Archives/1990/07/23/Columnist-gets-prison-terms-for-child-sexual-assaults/3097648705600/

Columnist gets prison terms for child sexual assaults

by Jon Sweet UPI, July 23, 1990

OMAHA — A former newspaper columnist and television entertainment critic was sentenced in court Monday to prison for a term of three to eight years for sexually molesting two young boys in his home.

Peter Citron, who pleaded no contest to two felony counts of sexually assaulting a minor, was also declared a mentally disordered sex offender and ordered to undergo treatment during his prison term.

(….)

In his interviews promoting the book, Nick Bryant complains about the unwillingness of editors at mainstream book publishers and magazines to publish the book or his articles on the scandal (TrineDay specializes in “conspiracy” and other “fringe” topics), attributing this resistance to “cognitive dissonance,” perhaps hinting at a larger super-conspiracy preventing publication as well. The book suggests that Larry King was working with DC lobbyist Craig Spence in a larger CIA backed sex and blackmail ring providing underage boys to top officials in the George H.W. Bush administration, perhaps even including Bush I himself. However, given the absence of solid forensic evidence such as photos, film, DNA etc., it is easy to see why most editors considering both their reputation and the possibility of lawsuits from powerful, wealthy persons would pass on the story.

“Conspiracy Theory” versus “Conspiracy Theory”

The phrase “conspiracy theory” is frequently used to dismiss allegations of crime, misconduct, and even just gross incompetence by groups of powerful people, especially authority figures in the worldview of the person or persons shouting “conspiracy theory”– without mentioning or addressing the specific facts or logic of the conspiracy theory.

Thus, recently for example, suggestions that US government officials erred in funding dangerous gain of function research into bat coronaviruses as the Wuhan Institute of Virology (WIV) over the objections of hundreds of prominent scientists questioning the “gain of function” research during the Obama administration and lo and behold the enhanced coronavirus might have escaped from WIV some time in late 2019 were immediately dismissed as a “conspiracy theory” in February of 2020 in what was clearly a coordinated media campaign organized in part by Peter Daszak, head of the EcoHealth Alliance which acted as the conduit for government funding of the “gain of function” research at WIV.

With conspiracy theories about larger conspiracies, it is often said “someone would have talked” as if no one has talked. In fact, as with the Franklin Scandal it is common to find multiple people talked in many alleged conspiracies. This was noticeable with many of the multiple victim child molestation cases of the 1980s, some of which such as the McMartin Preschool case featured many alleged victims.

In these “several people talked” cases, the multiple witnesses can be explained away by alleging a conspiracy to fabricate a conspiracy, generally orchestrated consciously or not by the investigators, in this case Gary Caradori. Cases like the McMartin Preschool case were explained away by blaming leading questioning by the therapists who interviewed the children, false memory syndrome, and similar excuses.

Those trying to discredit the “conspiracy theory” generally try to avoid or minimize the use of the word conspiracy in describing their own conspiracy theories as this may raise questions in the minds of listeners indoctrinated to believe conspiracies by their beloved authority figures are impossible. In the Franklin case, the authorities used the phrase “a Carefully Crafted Hoax” to describe the conspiracy allegedly organized by Gary Caradori.

Once you have voted for Bill Clinton it is hard to accept that he would sexually harass subordinates or that his wife and staff would conspire to cover up such misconduct. However, “a vast right-wing conspiracy” to fabricate the many scandals that have dogged the Clintons seems entirely reasonable and likely.

Prior to Monica Lewinsky, several women had alleged that Bill Clinton had sexually harassed or even raped them. Unlike the Franklin case, Monica Lewinsky with some coaching by Linda Tripp retained forensic DNA evidence of her relationship with Clinton. Linda Tripp was even taping her phone conversations with Lewinsky. A certain resemblance to the alleged Franklin sexual blackmail scheme is evident in Clinton’s misadventures.

• 

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The CIA and Satanism

Nick Bryant argues unequivocally in online interviews and to some extent in the book that Larry King and Craig Spence were CIA “assets” recruited in South East Asia during the Vietnam war. King served in the US military in Thailand during the war. Spence worked for ABC News in Vietnam at about the same time. A few of the witnesses such as Paul Bonacci and Rusty Nelson alleged a CIA involvement in the alleged sex and blackmail scheme.

King supposedly recruited underage boys and sometimes girls from the famous Boys Town Catholic orphanage in Omaha and other local sources and flew them to Washington DC and other cities to service the rich and powerful, notably unidentified officials in the Reagan and George H.W. Bush administrations. Lobbyist Craig Spence held parties for the DC elite during this period, allegedly attended by CIA Director William Casey for example.

Some of the stories — e.g. Paul Bonacci — included Satanic elements, alleged human sacrifice, the CIA MK-Ultra mind control program, and other far out elements. Bryant minimizes discussion of the alleged Satanic elements even though he traces his investigation back to an assignment to write a “very dark” article on Satanism. Only a few paragraphs here and there deal with the Satanism aspect or Bonacci’s more far out stories.

Curiously enough the only clear CIA involvement in the Franklin Scandal in the book is that the Franklin Committee (yes!) hired former CIA Director (1973-1976) William Colby to investigate the death of Gary Caradori. Colby was a friend of John DeCamp. DeCamp had served with (or for) Colby in Vietnam where Colby was head of the controversial Phoenix Program, an alleged assassination program to wipe out the VietCong in South Vietnam accused of numerous crimes.

Thus the Franklin Scandal involved CIA connected investigators accusing other business and political figures in Nebraska of working for/with the CIA in a nefarious sex and blackmail scheme. As the saying goes, you can’t make this stuff up.

List of CIA References in The Franklin Scandal

Although CIA involvement is central to Nick Bryant’s theory of the Franklin Scandal, the six-hundred plus page book actually only refers to the CIA in about twenty two short sections — often a sentence or paragraph. The most substantive references — claims of CIA involvement by Craig Spence, Henry Vinson, and Washington Times reporter Paul Rodriguez — are contained in the short thirty-six page chapter “Washington DC”,” pp. 275-310. Nick Bryant has another book Confessions of a DC Madam co-written with Henry Vinson, detailing Vinson’s claims.

Neither Spence, a cocaine addict who officially committed suicide, nor Henry Vinson, a now convicted felon who ran the escort service that provided young male prostitutes to Spence seem particularly reliable sources.

Again, remarkably, the only clearly documented CIA connections in the Franklin Scandal book are between the Franklin Committee and former CIA Director William Colby (see below).

p 9, “The Net was replete with stories of Satanists abducting children, and also of clandestine bonds between Satanists and the CIA.”

p 10-15, discuses the “Finders” case in which the CIA allegedly quashed an investigation into alleged severe child abuse by the “Finders” group, a controversial cult-like self-help group, in 1987. The book does not demonstrate a connection between the Finders case and the Franklin Scandal as far as I can tell.

p 17, quotes Larry King from 1988 issue of Omaha’s weekly Metropolitan claiming to know and admire the late Bill Casey, CIA Director in the Reagan Administration. (claim by Larry King who was convicted of embezzling about $40 million from the Franklin credit union)

p 18, “Though [John W DeCamp’s] Franklin Cover-up offered compelling evidence for the existence of [Larry] King’s pedophile ring and its cover-up by law enforcement, it lacked substantive proof for the ring’s connection to Washington DC, blackmail, and the CIA, and also the pandering of Boys Town kids.”

p 81, “The [Franklin] Committee members kicked around a number of names for a week or so, and at the suggestion of [Chairman Loran] Schmit they voted to invite former CIA Director William Colby to apply for chief counsel.”

“Since the credit union’s demise, several rumors were wafting around Lincoln and Omaha that Franklin monies had been covertly diverted to the CIA in its efforts to support the Nicaraguan Contras’ fight against the Communist Sandinistas.” (rumors)

p 82, “[Schmit’s] fellow Committee members shot down Colby’s appointment by a narrow margin — four to three.”

p 168-169, “[alleged blackmail photographer Rusty Nelson] didn’t feel compelled to convince me of the implausible events he discussed, which included allegations of pedophile politicians at the pinnacle of national power, Larry King’s CIA connections, blackmail, and the auctioning of children.” (Bryant describes Rusty Nelson as an untrustworthy character, having caught Nelson lying to him on several occasions.)

p 177-179, discussed Franklin Committee hiring former CIA Director William Colby to investigate Gary Caradori’s death and Colby’s own suspicious death in 1996 (officially an accident). Note hiring Colby is the only unequivocal, documented tie between the Franklin Scandal and the CIA. (documented CIA connection)

p 214, “[Boys Town counselor Dr. Leslie Collins] even held his elder stepdaughter at knifepoint for hours when she attempted to break off their [sexual] ‘relationship.’ Collins also threatened to kill her boyfriend if she ended her ‘relationship’ with Collins — she took his threats very seriously; he had previously disclosed [claimed] to her that he carried out covert activities for the CIA. Collins would ultimately be sentenced to thirty-to-fifty years for the sexual assaults on his stepdaughters.” (claim by a convicted felon trying to intimidate his victim, see references at end for Leslie Collins)

p 253, Discusses a rambling monologue by a witness called by special prosecutor Van Pelt for the Douglas County grand jury including the sentence: “Now, so I believe that Communism is a simplex theory, which has no practical application in reality, and Communists are lacking in judgment, and also that both the CIA and the three FDA networks are manipulated by double agents of the KGB.”

p 279, In discussing documentation from Henry Vinson’s gay male escort service acquired by Washington Times reporter Paul Rodriguez: “[Craig] Spence had ties to the CIA, blackmail and Larry King.” Apparently citing a New York Times article: “In fact, CIA Director William Casey seemed to be particularly fond of [Craig] Spence and his high flying get-togethers.”

p 282, “In some Japanese political circles, it was thought that the CIA had hatched the story [alleged leak of classified F-16 data to Soviets] to discredit [Japanese politician and Craig Spence associate Motoo] Shiina and nullify his rise to power.” (informed speculation)

p 287, “[Craig] Spence would divulge to Washington Times [owned by Rev. Sun Myung Moon’s Unification Church!] reporters that ‘friendly’ intelligence agents bugged all the parties at his Kalorama home, and he repeatedly alluded to the fact that he was in the CIA. ‘We had sources disclose that Spence wasn’t a direct employee of the CIA, but they confirmed Spence was a CIA asset,’ [Washington Times report Paul] Rodriguez told me [Nick Bryant]” (undisclosed sources)

p 290, “After [Craig] Spence threatened the [Washington Times] reporters with the razor blade, he launched into a protracted diatribe of self-importance, asserting he had carried out assignments for the CIA on numerous occasions — assignments that were crucial to covert actions in Vietnam, Japan, Central America, and the Middle East.” (Threatening reporters with a razor blade obviously raises questions about Spence’s sanity.)

p. 291, Discussing Craig Spence’s apparent suicide a few months later: “Next to Spence’s body on the bed was one final enigma: a newspaper clipping about then CIA Director William Webster’s attempts to protect CIA agents summoned to testify before government bodies — the Washington Times reported that Spence had indeed been subpoenaed by a grand jury investigating [Henry Vinson’s] the 34th Place escort service.

p. 293, “I [Nick Bryant] asked [Henry] Vinson two questions: ‘Were [Craig] Spence and [Larry] King partners in pedophilic pandering?’ and ‘Were [Craig] Spence and [Larry] King hooked up with the CIA?’ He reponded with an unhesitant, nonchalant ‘Yes’ to both questions.”

p. 296, 297 Vinson discusses his alleged dealings with Spence, King, and purported CIA “agents” or “assets”. (Vinson is a convicted felon.)

p 306, Strange story of an unidentified police officer source’s encounter with “suits” — “CIA, FBI or Secret Service” and Larry King during an investigation. (unnamed source, no mention of suits showing official ID to the unnamed police officer)

p 468, “However, [Washington Times reporter] Paul Rodriguez and his colleagues had [unnamed] sources state that Craig Spence was a CIA asset; Spence himself claimed he was a CIA asset and confessed that his home was bugged by “friendly” intelligence agents. Henry Vinson also told me [Nick Bryant] that Spence confessed to him he was a CIA asset and that his blackmail enterprise was CIA-affiliated.”

“Vinson claims to have informed federal officials that the pedophilic blackmail enterprise of King and Spence had connections to the CIA. The CIA has denied its affiliation to Spence, and Vinson is a convicted felon, …” (emphasis added)

p 469, Discusses CIA’s Operation Midnight Climax, part of the MK-ULTRA mind control experiments, suggesting parallels to the alleged King/Spence sexual blackmail operation.

p 473, returns to CIA and Finders case briefly.

p 499, Document Index, Documents — CIA inducing dissociation and MPD (Multiple Personality Disorder) p. 593

What Would Make the Franklin Scandal Book Better?

I found the semi-chronological order disconcerting, especially jumping back to before Gary Caradori’s death. Death after all is a final, emotional event, and suddenly realizing Caradori was back alive again several pages later confused me.

I would have preferred a strictly chronological order, perhaps with an overview of events at the very beginning. The wild goose chase with Rusty Nelson in which Bryant and Nelson were pulled over by menacing Nebraska State Patrol officers and their vehicle searched is discussed at the start of the book, perhaps as a mechanism to grab the reader’s interest and attention. This might be an effective opening hook, but then give a clearer timeline of events the book will cover and then move to a strictly chronological retelling of events. Any documentation or pictures of the search would have helped make the case for a cover-up.

Give a few paragraph to a few page introduction to each key character, especially the named perpetrators as soon as they first appear. Alan Baer’s name appears many times before the book finally explains who he is in detail. According to the index, Baer is first mentioned on page 114, as follows:

“Alan Baer, a prominent Omaha millionaire whom Caradori would link to King’s pandering network.”

Baer is then mentioned briefly six more times with little further info until pages 162-163 finally explain who Baer is and his relationship to the Brandeis department store family. He inherited the Brandeis fortune from his mother’s brother E. John Brandeis. As far as I can tell, Bryant never bothers to tell us whether the Omaha Brandeis family is related to the famous Supreme Court justice Louis D. Brandeis in some way. The Brandeis family members are not listed in the index either. This limited information on Baer is part of a general dearth of information on the alleged named perpetrators.

https://en.wikipedia.org/wiki/J._L._Brandeis_and_Sons

The chapter “State vs Owen” is very long, 154 pages, longer than some books. It consisted mostly of an almost blow by blow, line by line recounting from the grand jury and perjury trial transcripts with editorial comments added. A shorter chapter summarizing the events and issues of the trial with the actual transcripts in the already 100 page appendix with supporting documents would be easier to digest.

The Franklin Scandal was quite complex with numerous players and events. Several tables of key people, events, and data would likely help. Specifically:

All Legal Charges, Convictions or Case Resolutions — who was actually charged and convicted of what. All in one place.

All Named Alleged Perpetrators, what they allegedly did, any convictions, and any other convictions or scandals that might speak to their character.

All Named Witnesses with any credibility issues such as criminal convictions, changed stories, drug use, etc. listed.

All Suspicious Deaths (there were several suspicious deaths in addition to Gary Caradori and his son), Official Cause of Death, Name, Date, suspicious circumstances.

Key Documented Financial Transactions, such as millionaire department store heir Alan Baer’s alleged payment of $12,000 to either Franklin Credit Union or Larry King personally. Documented financial transactions are frequently more persuasive than eyewitness testimony in “conspiracy theory” cases. Witnesses after all may be lying, mistaken, or even insane — all three are usually alleged in “conspiracy theory” cases as in the Franklin Scandal. Put copies of the checks in the appendix with the other supporting documents.

Conclusion

In the Franklin case, we have several witnesses with similar corroborating original stories, witnesses with significant credibility issues including recanting under interrogation, witnesses from multiple sources — social workers in the Nebraska foster care system and Gary Caradori who seemingly tried to corroborate the original foster care stories as a good investigator should, and now several more found by Nick Bryant. We have two competing conspiracy theories to explain the testimony and no solid forensic evidence — no pictures, video, or DNA. At this late date we are unlikely to get to “ground truth” even with a thorough, sincere, fair, competent re-investigation.

The bigger lesson is that — as in many “conspiracy theory” cases — often some people do talk, sometimes many, telling similar tales. Eyewitness testimony proves of little persuasive value in many cases. Eyewitnesses tend to be either participants in the conspiracy such as Henry Vinson and Rusty Nelson who inherently have a credibility issue or accidental observers who cannot explain in detail their odd experiences and whose credibility may be undercut by their attempts to explain their puzzling observations.

The many people who claim to have been involved in Satanic cults including ritual abuse and even human sacrifice in recent decades may persuade credulous evangelical Christians and miscellaneous others but have been largely dismissed by society at large even in cases with demonstrable bodies and other evidence of reality.

Multiple mutually supporting accounts can frequently be blamed on conscious or unconscious conspiracies by the investigators as with the Franklin Credit Union scandal and Gary Caradori: overzealous prosecutors, a vast right wing (or left wing) conspiracy, psychotherapists with leading questions, false memory syndrome, and other excuses. Often canceled checks for large unexplained amounts of money have been the most persuasive evidence of actual conspiracy in practice.

References

Peter Citron https://www.upi.com/Archives/1990/07/23/Columnist-gets-prison-terms-for-child-sexual-assaults/3097648705600/

Leslie Collins appeal of sexual assault convictions https://caselaw.findlaw.com/ne-court-of-appeals/1252943.html

Leslie Eugene Collins Nebraska sex offender registration https://sor.nebraska.gov/Registry/Offender/201009LCL

(C) 2022 by John F. McGowan, Ph.D.

About Me

John F. McGowan, Ph.D. solves problems using mathematics and mathematical software, including developing gesture recognition for touch devices, video compression and speech recognition technologies. He has extensive experience developing software in C, C++, MATLAB, Python, Visual Basic and many other programming languages. He has been a Visiting Scholar at HP Labs developing computer vision algorithms and software for mobile devices. He has worked as a contractor at NASA Ames Research Center involved in the research and development of image and video processing algorithms and technology. He has published articles on the origin and evolution of life, the exploration of Mars (anticipating the discovery of methane on Mars), and cheap access to space. He has a Ph.D. in physics from the University of Illinois at Urbana-Champaign and a B.S. in physics from the California Institute of Technology (Caltech).