A federal grand jury in Austin, Texas late this afternoon indicted David Waters in the 1995 disappearance of American Atheists founder Madalyn Murray O'Hair and her family.

Waters, a former office manager for the organization, was charged with abduction, kidnapping, robbery and extortion resulting in the death of another person. He is the second person indicted in connection with the disappearance of Mrs. O'Hair, along with son Jon Garth Murray and her granddaughter Robin Murray O'Hair. Waters, 53, is currently serving a 60 year prison term in connection with a weapons charge, and theft of funds from American Atheists.

In July, Gary Paul Karr was convicted in connection with extortion of money and personal property from the O'Hairs and other crimes. He received a life sentence last month.

During Karr's trial, prosecutors called dozens of witnesses and presented jurors with a complex time line beginning with the forcible abduction of the O'Hairs. Though not charged at the time, federal investigators placed Waters as the person behind an elaborate kidnapping and extortion plot which, they say, ended in torture and murder.

The O'Hairs disappeared from San Antonio in September, 1995. When initially contacted by officers of the organizations, Jon Murray said that they were engaged in some sort business and would return soon. Later it was learned that $500,000 in gold coins had vanished, purchased with money taken from the bank account of an Atheist corporation.

The case began to break when the decapitated corpse of a man was discovered outside Dallas along a river bank. The body was that of Danny Fry, an associated of Mr. Waters. From there, other principals in the case were identified, including Gary Paul Karr.

* According to the Austin American-Statesman, prosecutors have had time to carefully build their case against Waters since he is already in state prison, after pleading guilty to the theft of $54,000 from O'Hair's organization and violating his probation. The influx of new prison inmates, though, has overtaxed the capacity of the system, and parole officials are reportedly mulling policy changes that could result in Waters' early release.

* Prosecutors had an October deadline for any indictment, since that would mark the five-year statute of limitations for charges which do not carry a death penalty. "After that," noted the Statesman, "federal prosecutors have only one basic option: murder charges."

* So far, no bodies have been located although sources close to the investigation say that the O'Hairs were tortured, killed, dismembered and the remains placed in blue plastic barrels which were buried. Acting on information, authorities have searched for the bodies with no success. Murder charges may be difficult to prove under these circumstances, but prosecutors are confident that kidnapping and other charges against Waters could be made to stick. When polled, jurors in the Karr trial reportedly agreed that had Waters been the accused, they would have convicted him on all counts.

The indictment and possible conviction of Waters may help to close a case which has captivated news media, fueled speculation, and resulted in an abundance of wild theories. When the O'Hairs disappeared, there was no evidence of foul play. Their offices had been untouched, and the family left several important projects uncompleted including production of an issue of the American Atheist Magazine. Gossip and even an Elvis-style magazine article placed family members in foreign countries such as New Zealand, and when news of the missing funds broke, the Internal Revenue Service began a probe in connection with possible money laundering. It soon turned into a murder investigation.

Sources tell AANEWS that a trial for David Waters could be held as early as January, 2001.

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