OMAHA U.S. District Judge William Cambridge named a receiver Friday for some property and all investments belonging to Alice King, who is named in a civil lawsuit stemming from the disgraceful failure of a credit union.

Lawrence E. King Jr., husband of Alice and codefendant in the suit, leased the Washington house located near Embassy Row until he moved out in early November. Cambridge said the property and money are ''in danger of being lost, removed or materially injured.''

Omaha attorney Thomas D. Stalnaker was named receiver of ''all bonds, notes, evidences of debt, checks, drafts, receivables and accounts, shares of stock in corporations'' issued to King or held by another for her.

Cambridge also named Stalnaker receiver of ''all furniture, fixtures and personal property of every kind that has been removed by defendant from property located at 2441 California St. N.W., Washington, D.C., and any and all jewelry in which defendant has an ownership interest in.''

Lawrence E. King Jr., husband of Alice and codefendant in the suit, leased the Washington house located near Embassy Row until he moved out in early November.

Lawrence King is former executive director of the failed Franklin Community Federal Credit Union, from which federal regulators contend almost $40 million is missing.

King allegedly diverted money from Franklin Community for personal and business use, said the $3 million lawsuit filed by the National Credit Union Administration. Mrs. King allegedly participated indirectly, it said.

Cambridge in November apponted attorney Keith I. Frederick as receiver for assets of Lawrence King.

Allegations of sexual abuse and illegal drug use has surfaced in an investigation of Franklin Community by a special legislative committee.

State Sens. Loren Schmit of Bellwood and Ernest Chambers of Omaha are committee chairman and vice chairman, respectively.

Former CIA Director William Colby was interviewed Friday in Lincoln for a job as legal counsel to the committee. Schmit said five other candidates will be interviewed.
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INTRODUCTION

It is a little over four years since I, John DeCamp, wrote the words you have just read. My closest friend and mentor, Bill Colby, like so many others in the Franklin case, is dead; he was fished out of a river in front of his home, under the most questionable of circumstances, in April 1996. Was he killed because of his involvement in Franklin? I don't know. What I do know, is that Bill Colby was the heart and soul of the Franklin investigation. Although at a certain point he warned me against investigating the case further, it was he who relentlessly pushed to publicly expose what had already been discovered, when everyone else, including, at times, myself, wanted to call it quits. Without him, this book would never have been written.

In the new, final chapter of this second edition, I tell much more about my relationship to Bill Colby, who was, in my estimation, one of the greatest patriots this country has seen, from the time that he served as our country's Deputy Ambassador to South Vietnam (but, in reality, as CIA Station Chief), and recruited a young combat infantry captain named John DeCamp to be one of his chief assistants in Operation Phoenix, right through to his role in trying to blow open the Franklin cover-up.

I published The Franklin Cover-Up, as much as an insurance policy for myself and my family, as for any other purpose. Colby had pointed to the extreme danger for a person to have secret knowledge about a situation, that others who are affected want to keep out of the public's view. "Some people will go to any lengths to make sure things stay secret," Colby had often repeated to me, "which is why the CIA and the KGB sometimes find their agents dead. Your best interest," he argued, "may well be in publishing what you know and are able to prove, rather than keeping those facts secret. Whether you ever sell a single book or not does not really matter. Putting your information on the public record is what is important. That way, there is no logical reason to harm you or your family, to suppress some truth you have already documented. That is probably your real life insurance policy in something like this Franklin situation," Colby had advised me...

Now, four years later, without a single dollar spent in advertising or promotion, over 50,000 copies of this book have been sold nationwide. I am convinced that this is why I am alive today, although I did receive a warning in September 1996, through reliable sources, that I am targeted--"just like they got Colby." There have also been innumerable attempts to disbar me. Although I have thus far been able to defeat every one of these attempts, they keep coming; to silence me through disbarment is, for those trying to hide the truth on Franklin, the equivalent of assassinating me.

So, the battle continues, both in the Franklin case per se--about which I include stunning new material which proves the truth of Part I of this book--and in the new cases in which I have become involved. As a result of the first publication of The Franklin Cover-Up, as an attorney, I have become involved in some of the most famous legal cases now occurring in these United States, from cases involving the militia movement, to the Oklahoma City bombing, to the notorious Gordon Kahl shootout with U.S. Marshals, about which documentaries and movies have been made, to appearances before the U.S. Senate on all of these matters, including Ruby Ridge and Waco. I have appeared on all of the national TV networks, and on many national shows, such as Nightline with Ted Koppel, Good Morning America, CNN's Burden of Proof, America's Most Wanted, and others. So, I say, as I dedicate this second edition of The Franklin Cover-Up to my friend and mentor, William Colby: "Thanks, Bill. You were right, so right it terrifies me. I told the truth, just as you instructed. Now, as a result of the publication of the original Franklin Cover-Up, I have ended up in situations, where, once again, the truth must be told on some explosive new issues, whose consequences rival those of Franklin, for the future of this country."

Thus, this new edition contains eight dramatic new chapters (and an epilogue): The Franklin Investigation, and Cover-up, Continue; Four Years Later--Where Are They Now?; Troy Boner Steps Forward; Drugs and the Monarch Project; From Montana to Oklahoma City; The Oklahoma Bombing; The U.S. Justice Department Murder of Gordon Kahl; and In Memoriam: Bill Colby. This concluding chapter will reveal more about Colby's role in Franklin, and his very last instructions to me, two weeks before his death. Finally, the last word on the Franklin cover-up is delivered in the epilogue--not by me, but by the nineteenth-century novelist Herman Melville. Besides his famous Moby Dick, Melville wrote short stories. A high-ranking personage involved in the Franklin case, told me that one of these stories contained the ultimate secret behind the Franklin cover-up. He was right.

CHAPTER 18 THE FRANKLIN INVESTIGATION , AND COVER-UP, CONTINUE

When the first printing of what you have just read appeared in May 1992, I was threatened with countless law suits by individuals named in the book. I was told by their attorneys, from some of the most prominent law firms in the state and in the country, that "We will destroy you in court." As it turned out, although there have been numerous attempts to disbar me only one law suit for libel and slander was ever launched as a direct result of the book--and that was a suit I launched and won, as I will relate. My victory in that case was but one of a series of what I call the "mini-miracles"--perhaps a hundred or more unforeseen events since the book first hit the streets, which prove the truth of The Franklin Cover-Up. I have chosen a small sampling of these "mini-miracles" to recount here.

After this book appeared, attorneys for Franklin-related individuals repeatedly appeared in the printed media (particularly in the Omaha World Herald) and on TV to make statements such as: "This book is the most libelous and slanderous book I have ever read. The individuals who have been slandered in this book will definitely be filing legal actions to stop distribution of this book and against Mr. John DeCamp personally. That is certain. This book will be stopped and Mr. DeCamp will be proved to be a liar and made to pay damages." When reporters who interviewed the lawyers or principals named in the book contacted me for my response to their threats, I had one standard answer:

"I agree with certain things these people and their attorneys attacking me are saying. I agree that the things described in this book are horrible. If anyone had said these things about me, I agree that I would sue them. I believe if there is anything false in this book or if they believe I have not told the truth in this book, that they should sue me. In fact, I welcome their law suits, because that will help develop the truth. I personally believe I have been most careful and cautious in the way I have handled matters, and only written about those things I can absolutely document."

So, what happened with those threats? Who sued whom? Who proved what?

The only major lawsuit for libel and slander arising from this book was my suit against Atlantic Telecast, owner of a television station in Wilmington, North Carolina, WECT (Channel 6). I charged that statements made on a WECT news broadcast on November 12, 1992, attacking me and the book were false. I demanded a retraction and public apology. The first response I received was from WECT's station manager, who informed me that WECT had consulted its attorneys, that the station had thoroughly investigated the matters described in my book, and that WECT was not only not going to apologize, but planned to repeat the attacks. WECT's attorney further advised me that the station had investigated, in part, by talking to U.S. Senator Bob Kerrey from Nebraska, who was running for president of the United States at the time, and who had visited Wilmington, and met with representatives of the TV station. Further investigation, he claimed, was conducted by talking to the new Wilmington police chief, a man named Robert Wadman--the former police chief of Omaha, Nebraska, who had come to Wilmington in the early 1990s!

After hearing this, I gave a simple demand to WECT: "Rest assured I am ready to prove everything I wrote in my book. I hope you are ready and able to prove your claims made on TV. I give you three weeks for further investigation, and then I will move forward aggressively on my lawsuit against you. At that time, I will seek not only an apology, but substantial monetary damages." Just under three weeks from the date of my ultimatum, attorneys from Atlantic Telecast contacted me and stated that they had done further investigation and acknowledged that now they, not I, were in trouble. Shortly thereafter, a settlement agreement was reached which stipulated: (1) WECT TV would broadcast a retraction and public apology to me on its news broadcasts, and would issue a press release to the same effect; (2) WECT would pay me money damages and other financial benefits; (3) All other details of the settlement, other than those stated above, would be kept confidential for the benefit of the TV station. I accepted the settlement offer, and dismissed my lawsuit. WECT lived up to its part of the settlement, and I have lived up to mine. My lawsuit intersected a fierce political battle between Chief Wadman, upon whom WECT had relied for its information, and his own police department, particularly with an officer named Sgt. Robert Clatty. Sgt. Clatty is the Wilmington Police Department's expert on satanic ritual abuse of children, and is one of North Carolina's recognized experts as well, with published works on the subject. Chief Wadman, on the other hand, claimed that there was no such thing as satanic ritual abuse; he attempted to make it impossible for Sgt. Clatty to carry out his work, and, at one point, suspended him. The publicly waged war between Chief Wadman and his wide array of defenders in Wilmington and across North Carolina, and Wadman' s adversaries, led primarily by Officer Clatty, went as high as the State Legislature. From 1992 until roughly mid-1994, it divided the city of Wilmington, and even the state of North Carolina. The outcome of the war between Chief Wadman and his own force was that in early July 1994, a secret meeting was held with city officials and Wadman's attorney. On July 11, 1994, Wadman resigned as police chief. Although city officials refused to comment on what had transpired in the meeting, Wadman himself admitted in a television interview later that month, that he had been ordered to resign from the Wilmington Police Department.

In May 1992, shortly after the first edition of this book was published, Monsignor Robert Hupp, who had been the head of Boys Town from the late 1970s through the decade of the 1980s--the critical time in question for the Franklin case, contacted me and asked to have a meeting, at which he specified that witnesses must be present. I anticipated that his purpose was to attack me, and to deny what I had written about Boys Town. I was completely wrong. With two witnesses present, Monsignor Hupp opened our discussion with the simple statement: "John DeCamp, your book stated the game; I hope I can help with some of the names." Monsignor Hupp and I then entered into an in-depth discussion on the entire situation involving Boys Town, Larry King, Peter Citron, the pedophile problem in general, and the entire story of the Franklin cover-up. He verified piece after piece of evidence of the Franklin story for me, and provided guidance on other directions in which to look, to develop further proof of the children's stories of abuse by this country's wealthy and powerful. When I asked Monsignor Hupp how this ever could have happened at Boys Town, he looked at me and told me, so apologetically, "I am like the wife who did not know, and was the last to find out. And when I finally did suspect something and tried to act, the Archbishop [Daniel Sheehan] elected to do nothing about it, when I asked him to help. And then, when I came upon something horribly evil, I found public officials and the Church would do nothing-apparently terrified at the damage it would do to the Church and to the entire city of Omaha," Monsignor Hupp said.

"What are you talking about?" I asked him. "Is there some particular story or incident you are talking about in the book that you have more information about? Please explain what you mean," I asked the Monsignor. He then described an incident in 1985, in which a young boy named Shattuck, who lived in Elkhorn, Nebraska, had been sexually abused and then killed. The Monsignor told me that he was certain who had killed the boy, a man he identified as a member of the Catholic clergy in the Omaha Archdiocese. Monsignor Hupp provided precise detail which he said proved beyond any doubt, that the particular individual he named was in fact, the child's murderer. "The Church is plagued by these sexual abuse problems across the country and by the devastating publicity the clergy abuse incidents have caused," Monsignor Hupp explained. "The Church's reaction to these sexual abuse problems is, in most cases, to immediately get the clergy member involved out of the state and, if possible, out of the country, and hopefully into treatment. I know that may not be right, but it is a difficult situation to deal with, and simply moving the priest or the brother out of the state or country has been the traditional approach by the Church in America to addressing the problems. In this case, where an innocent child was murdered and where I know that a member of our clergy has done this, I felt I had a moral obligation overriding all other things, to bring the situation to the attention of the appropriate authorities. And I did," Hupp concluded. The Monsignor then shocked me for the second time that day--and in a way that brought back to me the horrible memories of the Franklin cover-up. He explained that after he determined that the Catholic Archbishop of Omaha was not going to take action on the case he then went to the FBI and to the Omaha law enforcement authorities to provide complete details on the child's murder.

So, what happened as a result of Monsignor Hupp's actions? Apparently, nothing. Each year on the anniversary of the child's murder--now almost ten years--the media talks about the case as still being "under investigation," and street rumors persist about the Catholic clergyman--the one Monsignor Hupp believes killed the child--who was shipped out of state for alcohol treatment right after the murder. In the aftermath of our meeting, Monsignor Hupp ran into his own problems. In September 1992, the Monsignor advised me that he was receiving all kinds of pressure and criticism and was, he feared, being forced to leave Boys Town. Shortly after that discussion, in a controversy that received national press attention on how resources should be used at Boys Town, Monsignor Hupp was removed from his post. He now lives quietly in a home in West Omaha, Nebraska. Monsignor Hupp has shown incredible courage, as he has continued to provide me direction and assistance in the Franklin investigation and related matters. Monsignor Hupp is not some 13-year-old kid whom the cops say they cannot trust or believe. On the contrary, he is one of America' s most famous and nationally honored clergymen; the author of two best sellers; a former Presidential Appointee as Special Ambassador to the United Nations; and the former head of America's most famous child care institution (Boys Town). Monsignor Hupp showed his courage yet again, when he repeated his charges a year later to a British TV team making a documentary on the Franklin cover-up, entitled Conspiracy of Silence.

In mid-1993, after The Franklin Cover-Up had been circulating for almost a year, the British-based TV station, Yorkshire Television, sent a top-notch team to Nebraska to launch its own investigation of the Franklin case. Yorkshire had a contract with the Discovery Channel to produce a documentary on the case for American television. They spent many months in Nebraska, and also traveled this country from one end to the other, interviewing, filming, and documenting piece-by-piece the Franklin story as I had told it in the book. They spent somewhere between a quarter-million and one-half million dollars investigating the story, deploying probably a thousand times the resources and abilities that I personally had. Over the year that I worked with them, I was amazed at the team's ability to gather new documents and witnesses which kept opening up new and frightening facts about Franklin. They were a crack team. In the final weeks that they were in Nebraska, they expressed their certainty that they would win awards for this documented horror story of government-sanctioned drug-running involving children; government-sanctioned abuse of children; and government protection of some of this country's most powerful businessmen and politicians, who had been the chief actors in the Franklin story. Finally, the big day came. Their documentary was to air nationwide on the Discovery Channel on May 3, 1994. It was advertised in the TV Guide and in newspapers for that day. But no one ever saw that program. At the last minute, and without explanation, it was pulled from the air.

It was not shown then, and has never been broadcast anywhere since. I have a copy of that program, which arrived anonymously in my mail in late 1995. When I watched this pirated copy, I could see clearly why the program had been suppressed. Conspiracy of Silence proved, beyond doubt, that the essential points I had stressed in the book (and more) were all true. For instance, the team had interviewed Troy Boner. Sometime after that grand jury was over, Troy, guilt-stricken because of his lying over Gary Caradori's death, contacted me and told the truth about what had happened. This is recorded in a remarkable affidavit (see Chapter 20). The Yorkshire TV team spent a small fortune to confirm Troy's charges. They flew Troy to Chicago and paid for a lengthy polygraph (lie detector) test at the Keeler Polygraph Institute. With the results of that test, the Yorkshire team was so convinced that Troy was telling the truth, that they featured him in their documentary. It was only in mid-1996, that I finally pieced together, through sources I am not at liberty to disclose, what happened to stop the broadcast of this documentary.

1. At the time the Yorkshire TV team and the Discovery Channel were doing the documentary, they had no idea how high up the case would go into Government, and; what major institutions and personalities in this country, would be found to be linked to the Franklin story. Ultimately, the documentary focused on several limited aspects documented in this book, and developed them much more extensively than I ever had the resources or abilities to accomplish.

2. These areas which the documentary focused on, were: (a) the use and involvement of Boys Town children and personalities in the Franklin Scandal, particularly Peter Citron and Larry King's relationships to Boys Town; (b) the linkage of Franklin to some of this country's top politicians in Washington, and in the U.S. Congress, with particular attention on those who attended parties held by Larry King at his Washington mansion on Embassy Row; (c) the impropriety of these-politicians and businessmen and compromising of these people by Larry King, through drugs and using children for pedophilia.

3. When the broadcast tape was sent to the United States, Customs officials seized the documentary and held it up as being "pornographic material." Attorneys for Discovery Channel and Yorkshire TV were able to get the documentary released. Then, the lawyers went through the film for months, making this or that change or deletion, so that the documentary ultimately advertised to be shown on the Discovery Channel on May 3, 1994, would survive any claims of libel or slander that any of the individuals identified in the documentary might attempt to bring. The lawyers had cleared the documentary for broadcast.

4. During the several months that the documentary was being prepared and advertised for showing, major legislation impacting the entire future of the Cable TV industry was being debated on Capitol Hill. Legislation, which the industry opposed, was under debate for placing controls on the industry and the contents of what could be shown. Messages were delivered in no uncertain terms from key politicians involved in the Cable TV battle, that if the Conspiracy of Silence were shown on the Discovery Channel as planned, then the industry would probably lose the debate. An agreement was reached: Conspiracy of Silence was pulled, and with no rights for sale or broadcast by any other program; Yorkshire TV would be reimbursed for the costs of production, the Discovery Channel itself would never be linked to the documentary; and copies of Conspiracy in Silence would be destroyed. Not all copies were destroyed, however, as I and some others received anonymously in the mail a copy of the nearly-finished product.

I said in Chapter 12, "The Omaha Business Community": "As essential to Franklin as [Harold] Andersen's fundraising and publicity were, the credit union could not have functioned for a single day without the complicity of Nebraska's largest bank, FirsTier.... Every dollar that went into Franklin Credit Union--the missing $40 million was no exception-went into its account #153-7-353 at FirsTier." In October 1994, evidence released through the Freedom of Information Act (FOIA) proved exactly how right I was. These FOIA documents showed that some of the same attorneys who had threatened so loudly to sue me, together with the FirsTier Bank with which they were associated, had reached a financial settlement with the National Credit Union Association (NCUA), in which they agreed to pay the NCUA $10 million in damages for their role in improprieties involving Franklin. The attorneys had to come up with over $6 million, and First Tier itself, over $3 million. Despite the fact that the FirsTier case was the biggest malpractice settlement in the history of Nebraska, and despite the fact that the settlement involved very prominent individuals--including former Republican Governor Charlie Thone and attorney Jay Derr--the story received almost no coverage in the press, that is, before the FOIA material became public. Then the World Herald jumped in with a huge editorial in October, 1994, entitled "Franklin Credit Union Crimes Unfairly Claim New Victims." The World Herald wrote: "Some defendants, including banks and a law firm, have agreed to pay more than $10 million to the NCUA to settle the claims. They admitted no wrongdoing. They said they acted to avoid prolonged litigation. Their position is understandable. Litigation is expensive. Moreover, this particular litigation ran the risk of creating a false impression.... The impression could have taken hold that a wide circle of legal and financial advisers sat on the knowledge that King was looting the credit union.... Such an impression would have been false."

There was, indeed, "a wide circle of legal and financial advisers" in on the looting of Franklin, just as I had charged, and whom I name in Chapter 12, "The Omaha Business Community." Finally, some of them, at least, had to pay for it. Nor was this the only multi-million dollar scam to be exposed in the wake of the first edition of this book.

In Chapter 6, I described another big money scheme that intersected the Franklin case--the looting of the Commonwealth Savings Bank, in which I filed a claim on behalf of the Commonwealth victims. To my surprise and joy, I succeeded beyond all my expectations in this case--until a strained interpretation of our state Constitution was put forward by Nebraska's Supreme Court. First, I presented to the Claims Board the Commonwealth story exactly as described in this book, but with even more extensive documentation. The Claims Board agreed and reached a Settlement for some $16,000,000.00 to be paid to the Commonwealth victims. But, the Legislature had to approve this, as did the Governor. So, we took the matter of the settlement--with me as attorney for the Claimants and victims--to the State Legislature. Surprise--in a close but bitter battle, enough Senators stood up to acknowledge the horrible acts that had occurred, and the intense suffering of the Commonwealth victims that resulted. The settlement was approved. Next, we went to the Governor, who signed the legislation for the settlement. Then, the matter was taken to court by certain unnamed individuals (concerned citizens), who claimed that they did not want their tax money used to pay these Commonwealth victims. Nebraska has a unique section in its State Constitution which forbids the state from using any tax dollars for purposes of extending the credit of the state or granting a gift. The result: that which the Claims Board, and the Legislature and the Governor all agreed the Commonwealth Savings Bank victims were entitled to because of the failures of the Government in Commonwealth, was taken away by the Supreme Court of the State of Nebraska. The Court claimed that Nebraska's Constitution forbids paying the money to the victims, because they were only victims of moral wrongdoing, rather than legal wrongdoing. And John DeCamp, who would have become a multi-millionaire out of the case because I had done it on a contingent fee basis, ended up with nothing but the certain knowledge that I had established the truth as I have written in this book with respect to Commonwealth Savings Bank and certain of the personalities who are today so prominent on the national scene-Senator Bobby Kerrey, for example.

Besides Yorkshire TV, the most notable among the electronic media which became interested in the Franklin story was the TV program, America's Most Wanted (AMW). In several episodes, AMW opened up a whole new dimension on just how high up politically the story went and how wide it reached across the country. For a while, I had great hopes. For example, AMW interviewed Paul Bonacci in prison and broadcast his account of a host of specific details about individuals, places, activities, kidnappings, etc., in which he said he had participated.