Infamous America - MYSTERIES Ep. 3 | “‘Investor’ Alaska Murders”

Episode Date: November 27, 2024

At the end of the Labor Day weekend in 1982, people in the tiny fishing village of Craig, Alaska noticed a boat burning in the harbor. When they raced to help, they realized it was an expensive vessel called the Investor. The eight people who were likely onboard were never seen again. The investigation into the tragedy, which would soon be called murder, would be the longest and most expensive in Alaska history.   Join Black Barrel+ for ad-free episodes and bingeable seasons: blackbarrel.supportingcast.fm/join   Apple users join Black Barrel+ for ad-free episodes, bingeable seasons and bonus episodes. Click the Black Barrel+ banner on Apple to get started with a 3-day free trial.   On YouTube, subscribe to INFAMOUS+ for ad-free episodes and bingeable seasons: hit “Join” on the Legends YouTube homepage.   For more details, please visit www.blackbarrelmedia.com. Our social media pages are: @blackbarrelmedia on Facebook and Instagram, and @bbarrelmedia on Twitter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Bruce Anderson and Jan Kittleson had just finished loading their haul of shrimp onto their boat in the tiny fishing village of Craig, Alaska. It was Labor Day weekend, 1982, and they had been fishing in the waters off the coast of the village when a part of the freezer system on the boat malfunctioned. They motored to the harbor in Craig and offloaded their shrimp so that it wouldn't rot in the broken freezer compartment. They loaded the shrimp into the Phillips Cold Storage Facility

while they repaired their boat. By Tuesday afternoon, September 7th, Bruce and Jan had fixed their freezer and transferred the shrimp from the cold storage facility to the boat so they could go back out and keep fishing. One of the employees who was working at the facility that day was Charles Clark, who was affectionately known as Fat Charlie.

Charlie drove the forklift at the Phillips Cold Storage Facility and kept the boats supplied with ice for their freezers. As Bruce and Jan finished their prep, they noticed something that seemed normal at first, but quickly became alarming. The alarm spread to the town, and Charlie was one of the first to rush down to the dock to view the strange and then disturbing sight. A little after 4 p.m. that Tuesday, Jan untied the boat from the dock, and Bruce started to steer it into the harbor.

Bruce saw black smoke in the distance, which he initially thought was exhaust from an engine. But as he stared at the smoke, he realized it was billowing at a steady rate. It wasn't a blast of exhaust from an engine, it was smoke from a fire. Something was burning near a tiny chunk of land called Fish Egg Island. Bruce sped away from the dock at full throttle to reach the fire. At the same time, Larry Demert was finishing the refueling process for his boat at the dock. Demert was frustrated that his crew was not already assembled and ready to head back out to the fishing grounds. But when he saw the smoke, shortly after Bruce and Jan, he put aside his frustration and quickly finished the fueling process so he could investigate the fire.

On the docks, people from Craig, like Charlie Clark, started to gather and stare at the smoke with increasing concern. In the harbor, Bruce and Jan plowed through the water toward the smoke that was clearly coming from a burning boat. As they drew closer, they recognized the boat. It was the investor, a relatively new and very expensive vessel that was owned by a husband and wife team who were in their late 20s. They had two kids and currently employed a crew of four.

If any or all of the eight people were on board as the flames engulfed the decks of the investor, then the scene was rapidly going from concerning to terrifying and potentially tragic. Near the burning boat, Bruce and George did. Jan spotted a skiff racing toward them. A skiff is a small boat that works in tandem with a larger fishing boat. The boats worked together with a net to trap and catch fish. Skiffs come in all shapes, sizes, designs, and color schemes. Bruce and Jan instantly recognized the skiff that was barreling toward them because it was a rarity. It was painted in the exact same color scheme as its parent boat, the investor. The two boats were a match pair.

In addition to the rare color scheme, it was rare to see a skiff separated from its parent boat. Even more rare was that the investor's skiff was being driven by a young man whom Bruce and Jan didn't recognize. The young man appeared to be in his early 20s and wore a baseball cap and eyeglasses, and he only stopped the skiff when Bruce positioned his bigger boat directly in the path of the skiff. Jan shouted questions at the young man, who was very reluctant to respond. When he finally did speak, he confirmed that there were people on the burning boat. And then he hurriedly maneuvered the skiff around Bruce's boat and continued into the harbor at full bore. Bruce Anderson grabbed his radio and made the first May Day call to the U.S. Coast Guard.

In the harbor behind him, Larry Demert made a second call. People on the docks made similar calls at nearly the same time as the investor's skiff raced into the harbor and essentially crashed into a dock. The young man who was driving the skiff jumped off the small boat and haphazardly tied it to the dock with a rope. He made his rough landing right next to Paul Page and Sue Domenowski, a couple who had driven into town and were preparing to do some work on the house they owned in Craig.

When they had pulled into the parking lot of the Phillips Cold Storage Facility, they saw employees like Charlie Clark running outside and yelling about a boat that was on fire. Paul and Sue had just finished helping to load fire extinguishers onto a small boat of volunteers that was hurrying out to the blaze when the investors' skiff slammed into the dock a few feet away. Paul and Sue peppered the skiff driver with questions about the situation, but he was evasive and nervous and said he was in a hurry. The young man pushed past them and disappeared beyond the chaotic scene at the docks.

That was the last time anyone saw the young man, who might have been responsible for the worst unsolved crime in Alaska history. From Black Barrel Media, this is Infamous America. I'm your host, Chris Wimmer. This season is a shortened season that will feature three infamous mysteries that have kept people guessing for decades. This is episode three, Alaska Investor Murders. My relentless sleep problems have always come from an overactive mind.

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The brain shuts up, the racing thoughts stop, and it's off to sleep. Mood is federally compliant. The gummies are legal and delivered right to your door. At Mood.com, get 20% off your first order with our promo code, Infamous. Go to Mood.com and use the code infamous to get 20% off your first order. And they have a 100-day satisfaction guarantee. Mood.com promo code infamous. At 5.45 p.m., one hour and 45 minutes after the investor was spotted burning in a bay, a mile off the coast of the fishing village of Craig Alaska. A tugboat delivered 29-year-old Alaska state trooper Bob Anderson to the scene of the fire.

Bob Anderson was no relation to Bruce Anderson, one of the first people to rush out to the investor to try to help. And Bob had been a trooper for just two years. As a matter of practice, new state troopers were required to spend time patrolling the most remote regions of the state. Prince of Wales Island, where the town of Craig is located, certainly qualified as remote. The island is speckled with a few small towns like Craig, and in terms of state law enforcement, Bob Anderson was it. He was the only trooper on the island, one trooper who was responsible for patrolling an area the size of the state of Delaware. But in 1982, Trooper Anderson finally received a little help in the town of Craig. For most of Craig's history, it had been a village of about 500 people. The town mayor was also the one and only police officer. But in the late 1970s, the fishing industry in Alaska, which had

fallen on hard times, rebounded, and the town soon tripled in size. The year-round population was now about 1,500 plus hundreds of seasonal fishermen. Six months before the investor fire, the town established its first police force of two officers. There was also a young man who acted as a civilian volunteer. So, all told, there were, let's call it, three and a half lawmen in Craig Alaska on Tuesday, September 7, 1982, and they were about to be extraordinarily busy with an unprecedented crime. When the tugboat delivered Trooper Anderson to the investor, the fire was out of control, and there was nothing Anderson could do.

The Coast Guard took the lead in putting out the fire with a helicopter that dumped huge buckets of seawater onto the burning boat. After three hours of work, the flames were finally suppressed to the point where Anderson and two other men could board the boat. By that time, the fire had burned for more than four hours at a minimum. When Anderson and the others were able to board, they found horrifying sights and devastating realities. The boat was a charred disaster. It had burned down to the water line, and only the hull remained of the structure. The water that had been used to douse the flames had mixed with the ash to form a gray sludge.

Most of the wreckage was unrecognizable as objects that had once been part of the boat. But the bodies were recognizable. Trooper Anderson saw the burned shapes of two people in a heap. One, a man, was draped over the other, a woman, as if he were trying to protect her. Just inside the space that used to be the door to the galley, Anderson found the remains of another body. And deeper in the vessel, in the space that would have been the stateroom, he found a fourth body. That one was smaller than the others. And when the four bodies were taken together, it was easy to guess their identities.

The man was almost certainly the 28-year-old owner of the boat, Mark Colthurst. The woman under him would likely be his 28-year-old wife, Irene. The body near the galley door was probably their five-year-old daughter, Kimberly. That would make the smaller body in the stateroom, four-year-old Johnny. The magnitude of the tragedy started to hit Trooper Anderson as he and two volunteers performed the grim work of wrapping the remains in orange plastic and transporting them to the Phillips Cold Storage Facility in town. The magnitude started to hit,

but it didn't peak until many hours later. X-rays of the remains showed that Mark Colthurst had been shot multiple times in the face. It was highly likely that Irene, Kimberly, and Johnny had also been shot. And then two more bodies were found in the ashes of the boat. By that point in the fishing season, the family of four employed a crew of four. The bodies of two of the crew members, 19-year-old Michael Stewart and 18-year-old Chris Heyman, were in the boat. But the bodies of Dean Moon and Jerome Keone were missing. Maybe the two missing 19-year-olds had been completely incinerated, or maybe they were involved in the murders.

But critically, neither crew member matched the description of the young man who had driven the investors skiff up to the docks at breakneck speed. And lots of people in town knew Dean and Jerome. If one of them had been the driver, he would have been recognized. And just as critically, the roaring fire and the hundreds of gallons of water that have been needed to put it out destroyed all the physical evidence on the boat. As investigators began to arrive on Prince of Wales Island and traveled to the village of Craig, they faced the largest murder mystery in the history of Alaska.

Six people were dead for sure, and the total was probably eight. There was no physical evidence, and the skiff driver, who was either a vital witness or the killer, had vanished. Detectives with the Alaska State Troopers took the lead on the investigation, and they faced insurmountable obstacles on three fronts. Evidence, time, and geography. The investor was the crime scene, and virtually, all physical evidence of a crime was destroyed by the fire and the effort to put it out. In terms of time, it took a full day after the fire for the first investigators to arrive in Craig. That was three full days after the victims were last seen alive.

And over the course of those three days, and more importantly, the 24 hours between the fire and the arrival of the detectives, people who had been in Craig scattered. Like most Alaskan fishing villages, far more people passed. through town because of the fishing industry, then actually lived there. People from Alaska, Canada, Washington, Oregon, and Northern California all fished in the waters off the coast of Craig. It would take detectives months of time and thousands of miles of travel to track down people who might have been witnesses or suspects. And even then, there was no way for detectives to be sure they had accounted for everyone. But they had to start somewhere. And the first task was to simultaneously

interview everyone who was still in Craig and to learn as much as possible about Mark Colterst and his family and crew. Mark Colterst was an aggressive and ambitious fisherman. He was from Bellingham, Washington, an hour and a half north of Seattle. He married Irene, his first and only girlfriend, right after they both graduated high school in 1972. They moved north to the small town of Blaine, Washington, right on the border with Canada, and dove into the fishing business. The husband and wife team were drawn to the excitement and adventure of the lifestyle as much as the profession's prospects for fast money. They built their dream home in Blaine and welcomed their daughter Kimberly in 1977 and their son Johnny in 1979. By 1982,

after 10 years of marriage, Mark and Irene had proved themselves capable and successful in the fishing industry. Mark had upgraded their boat twice in order to catch more. fish and make more money. And the third and final boat was named investor for a good reason. It was the biggest upgrade by far and it cost $850,000, which made it a huge and risky investment for Mark and Irene. With the purchase of the new boat, the tension rose in the Colthurst fishing operation. In 1982, the fishing season for Mark's type of boat opened around Craig Alaska on July 4th. By the end of August, Mark had lost his longest-serving and most reliable crew member. Roy Tussing was a close family friend who had fished with Mark for seven years.

Roy was the engineer and skiff operator, and he quickly grew tired of Mark's attitude. When Roy was interviewed about his relationship with Mark and the falling out that led to Roy quitting, Roy said that Mark had always been hot-headed, but in the summer of 1982, Mark was becoming arrogant. Roy remembered saying plainly, Mark, you're turning into an asshole. So Roy Tussing left the crew at the end of August due to a deteriorating relationship with Mark Colthurst. And Leroy Flaming left around the same time. Flamming was the cook on the boat, and his normal job was as a border patrol officer in Blaine, Washington. He fished with Mark in the summer months.

But Flamming ended the 1982 fishing season early so he could go to a friend's retirement party. Irene Coulters took over Fleming's job as the cook, and that left Mike Stewart, Chris Heyman, and Dean Moon as the other full-time crew members. All three were still technically teenagers. Mike and Dean were 19, and Chris was 18. To replace Roy Tussing, Mark hired Dean's high school friend, Jerome Keone, who was also 19. When the fishing season was done, Jerome would start his second year. at Seattle University, and he had recently learned his girlfriend was pregnant.

So that was the lineup for about a week before the investor motored into the harbor at Craig, Alaska, to pause its work for Labor Day weekend. The pause was a legal requirement for the fishing industry in Alaska, but it would have happened anyway for the crew of the investor. It was Mark's birthday that weekend. The family was going to have a birthday dinner at a restaurant in Craig. And Irene was pregnant with a couple of children. third child. It was time for her to leave the boat and take the kids back to Blaine Washington

while Mark finished the fishing season. She and the kids were scheduled to travel home on Monday, September 6th, the day after the investor docked in Craig. None of them made the trip. The birthday dinner on Sunday night might have been the last time the Colthurst family was seen alive. Late in the afternoon of Sunday, September 5th, 1982, Mark Coltholterst motivated. Mark Colthardst motored the investor into the harbor at Craig, Alaska. He chose North Cove, the quieter of the two docks in town, to station his boat for the next day or so. During the Labor Day weekend closure of the salmon fishing season, the docks were packed. Boats were tied to each other in lines that extended out from the docks. Mark tied his boat to the decade, which in turn was tied to a boat called the Defiant, which was tied to the dock. When the investor was secure, Mark allowed his four young crewmen to disembark and enjoy a well-earned night on the town.

He told them to be back by noon the following day, Monday, September 6th. Mark, Irene, Kimberly, and Johnny climbed across the decks of the decade and the Defiant to reach the dock, and then they walked into town for the birthday dinner. A woman named Ruth served them dinner at a waterfront restaurant, and she was one of the last verifference. people to see them alive. After dinner that Sunday night, the family returned to the investor. Sometime in the night, or in the wee hours of Monday morning, the four crewmen, Dean, Mike, Chris, and Jerome returned to the boat. And at some point during the dark hours, most or all of the eight people on board died. The most likely scenario was that they were all shot. But if so, one of the

many and baffling aspects of the crime was that no witnesses were found who heard the gunshots or saw anything unusual on or around the investor that night. A day and a half later, Bruce Anderson and Jan Kittleson saw black smoke billowing from a burning object a mile away from the docks and realized a boat was on fire. As they hurried out to help, they interacted with a young man who was driving the skiff that belonged to the investor. The young man appeared to be raised, racing away from the fire, and he knew there were people on board the burning vessel, but he showed no signs of trying to help. In hindsight, it looked much more like he was fleeing the scene of a crime.

The U.S. Coast Guard put out the fire, and Alaska State Trooper Bob Anderson supervised the removal of the remains of the victims. At that time, only three sets of remains were readily identifiable as belonging to human victims. They belonged to Mark, Irene, and Kimberly. The remains in the state room would later be identified, essentially through the process of elimination as those of four-year-old Johnny. And later, sparse and mingled remains would be identified as crew members Mike Stewart and Chris Heyman.

The remains of the other crew members, Dean Moon and his friend Jerome, were never positively identified. On Wednesday, September 8th, the day after Trooper Anderson completed the grid of the work of transporting the remains to the Phillips Cold Storage facility in town, homicide investigators started to arrive in Craig. They split into three teams. One team began interviewing everyone in town. One team began the nearly impossible task of finding and interviewing everyone who had been in town,

but left between Sunday night and Tuesday night. And the third team began sifting through the wreckage of the boat looking for clues. The third team had the least amount of luck. Virtually no usable physical evidence survived the fire. The most important pieces were the tiny bullet fragments that were mixed with Mark Colterst's remains, which led detectives to conclude he had been shot multiple times. From there, it was mostly the use of the transitive property that led investigators to start forming theories.

If Mark had been shot, it was highly likely that the other victims had been shot too. Then the killer or killers had driven the boat out into the harbor and set it on fire to destroy the evidence and cover their tracks. If that was how it happened, the plan had worked well. And while the third team of detectives hit dead ends with the physical evidence, the first team of detectives made early progress with witness interviews in town. Detectives spoke to multiple witnesses who saw and or talked to the young man who drove the investor's skiff up to the docks. Yet even as they learned about the person who seemed to be the key to the investigation, they waited three days before they investigated the skiff itself.

By that time, the boat had been moved at least twice by fishermen who needed to get it out of the way so they could go about their regular duties. That skewed any fingerprints that could be lifted from the boat. And a storm had settled over the town. Rain had thoroughly drenched the fiberglass skiff, and detectives were pessimistic that they'd be able to recover fingerprints from it at all, so they didn't even bother to try. It was one of several decisions that would be criticized in the months and years to come.

While teams two and three went about the unenviable tasks of trying to find everyone who had left Craig after the weekend and sifting through the ashes to find evidence, Team One interviewed people in town as fast as possible. detectives quickly learned about the mysterious skiff driver. The young man had interacted with multiple people on Monday, the day before the fire, and Tuesday the day of the fire. None of the witnesses had recognized the skiff driver, and most offered the same basic description. The young man was between 19 and 21 years old. He had stringy brown hair that hung down below his ears. He wore glasses, a blue or gray baseball cap.

jeans, a t-shirt, and a wool jacket. Nearly everyone who talked to him noted that he acted nervous or anxious or in a hurry to leave. The skiff driver, whoever he was, immediately became the prime suspect. One day after the crime, the civilian volunteer who helped the local police told state troopers that he had an uneasy feeling about a specific person. The volunteer was Jerry Mackie, whose mother owned a popular spot called the Hill bar. While Jerry was in the bar, he noticed a young man who fit the description of the skiff driver. A state trooper captain quickly coordinated with Bruce Anderson and Jan Kittleson to have them separately and casually walk into the bar and see if the young man in question was the skiff driver.

Bruce and Jan did as instructed, and they both said they did not see the skiff driver in the bar. The captain decided to talk to the young man anyway. He entered the bar. He entered the bar and approached the young man who turned out to be John Peel, a crew member on a boat called the Libby Eight. Peel loosely fit the description of the skiff driver, and he had worked for Mark Colterst in the past. At that moment, Peel was having a beer while he waited for a flight to the mainland,

where he would catch another flight home to Bellingham, Washington. After a brief conversation, the captain left John Peel alone and continued his search for the missing skiff driver. Later that day, Peel boarded a small plane for what turned out to be the last flight to the mainland before the troopers shut down all traffic off of Prince of Wales Island. The captain spoke to Charles Clark, Fat Charlie, at the Phillips Cold Storage Facility. Charlie agreed to walk around town with the captain to see if Charlie recognized the skiff driver.

As they walked down to the docks, they passed John Peel, who had finished his beer and was preparing to leave the island. The captain pointed at Peel and asked if Peel looked like the skiff driver. Charlie said, no, that's John Peel, I know him. The excursion continued in that vein. Charlie didn't see anyone who looked like the skiff driver. On September 14th, one week after the fire, the state troopers produced three composite sketches of the skiff driver, but none led to any positive identifications.

With no good leads on suspects and no obvious, motive for the crime, speculation ran wild. Because of the time period, the place, and recent examples, a popular theory became drug smuggling gone wrong. With the explosion and popularity of cocaine, smuggling operations became bigger businesses than ever before. There were multiple examples of fishermen who were caught smuggling marijuana or cocaine into the United States mainland from Alaska. Mark Colterst was under immense pressure to make payments on his expensive new boat. Maybe he decided to make extra money by secretly smuggling drugs on his trips to and from his home in Washington. While the theory was certainly the kind of juicy gossip that people loved to discuss,

detectives found no evidence to support it. Given the existence of the mysterious skiff driver and the extreme measures that were taken to conceal the crime, it seemed far more likely that the killer knew and targeted Mark Coulterst. But months dragged by with no new leads. Exactly one year after the murders, troopers descended on Craig Alaska and conducted a new sweep of the area with the hope of finding fresh clues. They left empty-handed.

In March 1984, a year and a half after the crime, detectives categorically ruled out all of the crew members as suspect. For the investigation, the announcement ended the theory that one or both of the crew members whose remains could not be identified, Dean Moon and his friend Jerome Keone, were involved in the murders for unknown reasons, had escaped the boat, and successfully gone into hiding. That same month, investigators circled back to John Peel, and he became their prime suspect. They interrogated Peel in Bellingham, Washington, and tried to get him to confess. You wouldn't. And six months later, almost two years to the day after the murders, Bellingham police arrested John Peel for arson and eight counts of first-degree murder.

Two days after John Peel and his wife Kathy celebrated their son's first birthday, Peel was locked in a cell at Watcomb County Jail in the first step toward what would become the most expensive criminal case in Alaska history. The case would also hold the dubious distinction, of being one of the longest and messiest in Alaska history. During two years of investigation, detectives said John Peel's name kept coming up when they talked to witnesses.

Peel loosely fit the description of the skiff driver. He had known the Colthurst family for 10 years. They were all from Bellingham, and John Peel had briefly dated Mark's younger sister in high school. John had worked for Mark in 1980 and 1981, but he was not hired back in 1982. According to former crew members Roy Tussing and Leroy Flamming, Mark fired John Peel after escalating conflicts between the two men.

According to Peel, he quit because of Mark's increasingly arrogant attitude, a sentiment that also led Roy Tussing to quit one week before the murders. Over the course of the investigation, detectives believed they could make a case that the tension between Mark and John John built up over a series of months in 1982. And then on Labor Day weekend, John Peel snapped and murdered everyone on Mark's boat. That was the story that prosecutors took to trial in 1986. When Peel was arrested, one of the lead investigators told the media that the case was sturdy

and said the physical evidence against Peel was, quote, substantial, and the circumstantial evidence was, quote, exhaustive. The trial lasted six months, and at the end of August, 1986, almost exactly four years after the murders. The proceeding ended in a mistrial when a jury couldn't reach a unanimous verdict. A year and a half later, in January 1988, John Peel went on trial for a second time. A juror on the first trial was so outraged by the lack of evidence

and the waste of time that he wrote a letter to, the judge of the second trial and implored him to throw out the case. The judge didn't, but four months later, the jury found John Peel not guilty on all charges. Juror Geraldine Alps told the Anchorage Daily News, there was no proof whatsoever that Mr. Peel committed the crime. The only thing that John Peel was guilty of was being in Craig the weekend the murders happened. Throughout the legal saga, a litany of malpractices by detectives and prosecutors came to light, so much so that the first judge overturned the first grand jury indictment of John Peel because detectives and prosecutors had misrepresented the supposed evidence against him

so badly that the jury couldn't possibly form an educated opinion. The district attorney did secure a second indictment, but the second trial resulted in a unanimous verdict, that John Peel was innocent. Two years later, in 1990, Peel filed a lawsuit against detectives and prosecutors for alleged malicious prosecution, false arrest, and conspiracy to violate his civil rights. He asked for $178 million in damages, and not surprising, he didn't receive quite that much. In 1997, Peel reached a settlement with the state of Alaska and the city of Bellingham, Washington, for $1.2 million.

Despite a long list of problems with the case against John Peel, investigators and prosecutors continued to maintain that Peel was the killer. As such, there has been no further serious investigation of the murders of the Colthurst family and their crewmen. The identity of the young man who drove the investor's skiff to shore the day the crime was discovered remains a mystery. And the case of the investor murders, remains unsolved to this day.

Thanks for listening to this short series of mysteries here on Infamous America. That wraps up our new episodes for 2024. We'll run an encore series to finish the year while we work behind the scenes to train some new people so that we can begin our full schedule of new episodes in early January 2025. We'll see you then.

Members of our Black Barrel Plus program don't have to wait week to week for new episodes. They receive the entire season to binge all at once with no commercials, and they also receive exclusive bonus episodes. Sign up now through the link in the show notes or on our website, blackbarrelmedia.com. Memberships are just $5 per month. Original music by Rob Valier. I'm your writer, host, and producer, Chris Wimmer.

Find us at our website, blackbarrelmedia.com or on our social media channels. We're Black Barrel Media on Facebook and Instagram and B-Barrell Media on Twitter. and you can stream all our episodes on YouTube. Just search for Infamous America Podcast. Thanks for listening.