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The Franklin child prostitution ring allegations took place between 1988 and 1991 and involved an alleged child sex ring serving prominent citizens of the Nebraska Republican Party, as well as high-level U.S. politicians. The allegations also claimed that the alleged sex ring was led by, "a cult of devil worshipers involved in the mutilation, sacrifice and cannibalism of numerous children." The allegations centered on the actions of Lawrence E. King Jr., who ran the now defunct Franklin Community Federal Credit Union (FCFCU) in Omaha.

Scandal
Allegations of sexual abuse first emerged in 1987 when the Nebraska Foster Care Review Board received allegations of physical and sexual abuse of foster children linked to the Franklin Community Federal Credit Union (FCFCU) which were turned over to police, the FBI and the County Attorney’s Office. Following the failure of law enforcement to act on the allegations, in December 1988, the Review Board submitted the results of it's investigation to the Executive Board of the Nebraska Legislature, which created the Nebraska legislative committee to investigate claims that children in foster care were flown to the U.S. East Coast and were abused at "bad parties." On November 4, the National Credit Union Administration shut down the FCFCU in order to investigate financial irregularities and had subsequently filed suit against the Franklin Community's manager and treasurer Lawrence E. King Jr. alleging that he had diverted $38 million of the Franklins money for personal use. The Federal and state investigations were widened to examine links between the child abuse allegations and the credit union.

After investigation, a Douglas County (the county seat for Omaha, Nebraska) grand jury determined the abuse allegations were baseless, describing them as a "carefully crafted hoax." While not naming those suspected of perpetrating the hoax, the grand jury suggested the allegations were "scripted by a person or persons with considerable knowledge of the people and institutions of Omaha" and indicted two of the accusers on perjury charges. The grand jury also suggested that a vindictive employee terminated by Boys Town may have "fueled the fire of rumor and innuendo." Later, a federal grand jury concluded that the abuse allegations were unfounded and indicted 21 year old Alisha Owen, an alleged victim, on eight counts of perjury. The same grand jury also indicted multiple officers of the credit union, including King, for crimes related to the embezzlement of funds from the credit union. Alisha Owen was sentenced to 9 to 15 years and was released after serving 4-1/2.

Aftermath
In 1990, based on information provided during the Franklin investigation by the Foster Care Review Board, the Nebraska Legislature enacted a number of protections for abused children including additional funding, extending the statute of limitations for child abuse and the creation of the Child Protection Unit.

In 1991, John DeCamp filed a lawsuit on behalf of Paul A. Bonaccio, one of the accusers indicted for perjury by the county grand jury, against King in civil court alleging that King and 15 other defendants had forced him to take part in a child prostitution ring. Fifteen defendants were cleared but King failed to respond to a court summons to appear and Judge Warren Keith Urbom entered a default judgment for $1 million against him. King subsequently appealed to the Eighth U.S. Circuit Court of Appeals but later dropped the appeal, letting the judgment stand.

Historian Philip Jenkins explored how hot topics such as the Franklin allegations, whether or not they are worthy of attention or credible on their own merits, are seized by political opportunists for their own purposes. He also described how cases such as the Franklin allegations can acquire credibility, even if they lack any credibility inherently, when reported in various media in a credulous voice. Numerous conspiracy theories evolved and persist, claiming that the alleged abuse was part of a widespread series of crimes including devil worship, cannibalism, drug trafficking, CIA arms dealing and links with the first Bush Administration.

Allegations of a cover-up persist, some leveled by those directly involved in the case and by others including several conspiracy theorists claiming that the alleged abuse was part of a widespread series of crimes including devil worship, cannibalism, drug trafficking, CIA arms dealing and links with the first Bush Administration.