Was a journalist found dead in a hotel bath tub murdered because he was investigating a highly sensitive political cover-up?

Smiling Dan Casolaro with light hair

Dan Casolaro

Investigator wearing gloves holding out Dan's suicide note

He left a suicide note

CASE DETAILS

In the summer of 1991, a housekeeper at the Martinsburg, West Virginia, Sheraton hotel opened Room 517 to clean it. Nothing prepared her for what she found inside. Hotel guest Danny Casolaro was lying dead in a tub of bloody water. Danny was an investigative journalist from Fairfax, Virginia, a suburb of Washington D.C.

Dan writing on a chalk board filled with post it notes while he talks on a landline phone

Was he killed because he knew too much?

Martinsburg police arrived on the scene. In the room they found a suicide note and a single razor blade in the bathtub. Danny’s wrists had been slashed twelve times. Eight cuts on his left wrist and four on his right. One cut was so deep it severed a tendon.

Danny’s body was taken to a local funeral home later that afternoon. But strangely, according to journalist Jack Anderson, Danny’s family and friends weren’t told about his death until two days later:

“From the moment we heard about his reported suicide, we doubted it, questioned it, wondered about it. It was not his nature to kill himself. So we were suspicious from the first, and the deeper we dug into it, the more suspicious we became.”

Funeral goers watching a mysterious man walk away from the funeral

Who was the military man at the funeral?

Just a few days before Danny Casolaro died, he told friends he was on the verge of breaking a huge story. Danny claimed to have proof that some U.S. justice department officials were corrupt. Many suspect that Danny’s death was not a suicide. They believe that he was murdered because he knew too much.

Danny’s advocates believe that the true story of Danny’s death began when he interviewed Bill and Nancy Hamilton, owners of a computer software company called INSLAW. They had developed revolutionary software to speed up case management for law enforcement agencies. In 1980, the U.S. Justice Department became a major client. At first, the program was a success. But according to Ray Thornton, something changed:

“The Justice Department began to withhold payments from INSLAW, and they withheld a couple of million dollars from INSLAW, drove INSLAW into Chapter 11 bankruptcy.”

INSLAW then discovered that the Canadian government was also using their software, even though they hadn’t paid for it. William and Nancy Hamilton told Danny that they were confused by what was happening, until they talked to a man named Michael Riconosciuto. Riconosciuto claimed to have worked for the CIA and knew about the illegal sales of INSLAW’s software:

“Well, the parties that were involved in the distribution of this software were involved in covert operations. And they were involved in Nicaragua and Central America, and they were involved in operations in the Middle East. And, yes, I have direct knowledge of funds from the sale of this product being used to finance those operations.”

Then Congress began to hear about the INSLAW scandal. In August 1989, the House Judiciary Committee opened a formal investigation. Michael Riconosciuto began telling his story to committee investigators. Within a week, Justice Department agents arrested Riconosciuto on drug charges.

Michael’s drug conviction hurt his credibility, but another witness with perfect credentials stepped forward. His name was Elliot Richardson. He was Richard Nixon’s Attorney General until he resigned rather than participate in the Watergate cover-up. He was now the lawyer for INSLAW:

“In the case of INSLAW, there’s a spreading radius of circumstantial evidence which, at its outer reaches, entails a far more sinister kind of conspiracy than anything revealed in Watergate.”

Danny Casolaro believed he had uncovered a sprawling criminal network. He said it was made up of U.S. officials, organized crime members, and intelligence agents. He called it “The Octopus.” Journalist John Connolly said he believed Danny got in over his head:

“Danny Casolaro stepped into a world that he didn’t belong in. The type of people that he became involved with lie, they cheat, they’re people who have been involved in numerous murders, dealing drugs, dealing arms, and Danny Casolaro thought he could find his way through this labyrinth by himself. And that was a mistake.”

A week before he died, Danny told his brother, Tony, that he had been receiving death threats. Danny arrived in Martinsburg with all of his notes and documents two days before he died. He was scheduled to meet several informants and complete his investigation. He believed one of his new contacts would deliver key evidence about the finances of “The Octopus.” According to Michael Riconosciuto:

“Danny had a source inside the IRS’s computer data center who was giving him hard copy printouts of IRS information on certain specific targets that Danny was after.”

The day before he died, Danny met with William Turner, a former employee of a major defense contractor. According to Turner, he gave Danny papers showing the corruption that Danny believed was tied to the Octopus. But within 24 hours, Danny Casolaro was found dead. There was no sign of Turner’s documents or Danny’s research papers. To this day, not one of those papers has been found.

West Virginia authorities opened a formal investigation and ordered an autopsy. That’s when Don’s brother, Anthony Casolaro, said he received some shocking news:

“The assistant medical examiner from the State of West Virginia said, ‘Well, you know, he’s already been embalmed and that’s gonna make it a little difficult.’ And I said, ‘What are you talking about, he’s already been embalmed?’ And he said, ‘Well, he was embalmed, apparently, already.’ He said, ‘You didn’t know that?’ I said, ‘Absolutely not. We didn’t give any permission.’”

The autopsy confirmed that Danny had bled to death from the razor cuts on his wrists. But, more importantly, according to Anthony Casolaro, it revealed that Danny wasn’t alone in his hotel room during his last moments:

“The actual autopsy report described a bruise on the arm and a bruise on the head which were never accounted for. I was told there were no signs of any struggle. Additionally, the tips of three fingernails were missing from one hand.”

When Casolaro’s hotel room was cleaned by a professional cleaning crew the day after his death, important evidence was destroyed. One of the housekeepers saw two bloody towels in the bathroom minutes after Danny’s body was found. It looked like they were used to wipe blood off the bathroom floor. Journalist John Connolly questioned how the scene was handled by authorities:

“The police reports of the investigation are certainly not professional. Fingerprints get lost, get messed up. They drain the tub without a strainer. Sloppy work. Police have a rule in this country. Government people have a rule. When they screw up, they cover up. Sad but true. Do I think they covered up here? Yes I do.”

Elliot Richardson said he believes the evidence indicates foul play:

“There’s enough evidence that he was murdered so that there should have been a much more intensive investigation than there had been. All that I do know makes me believe that is was more likely that he was murdered than that he committed suicide.”

Even Danny’s funeral was clouded by mystery. A highly decorated military officer arrived in a limousine near the end of the service. No one at the funeral recognized him.
The man carefully placed a medal on the casket just before it was lowered into the ground. Ann Klenk was a friend of Danny’s:

“We went back to Frances’s house, Danny’s mother’s house, and I said, ‘Frances, who was the military man?’ And she said, ‘I thought you’d know’. And we asked everyone there. There had to be fifty people at Frances’s house. No one knew who they were. No one.”

A short time later, the official investigation of Danny Casolaro’s death was closed. West Virginia authorities and Department of Justice representatives declined to participate in this story.

Many of Danny’s family and friends remain convinced that he did not commit suicide.


Watch this case now on Amazon Prime in season five with Robert Stack and in season three with Dennis Farina. Also available on YouTube with Dennis Farina. Various seasons available now on Hulu.

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49 Comments

  1. Victor David Jansen

    Can anyone confirm that the hotel is now holiday inn on Foxcroft Ave? I’ve been staying there for work trips and it just hit me that this could be the hotel.

    Reply

  2. LG

    Check out the case of pilot/author Phillip Marshall, in California.

    Reply

  3. Mike

    You can go to the link, and at the bottom of that page has information directly related to the investigation of the government conspiracy.

    Reply

  4. Mike

    I thought this might be helpful with this story…

    The Octopus
    https://text-message.blogs.archives.gov/2010/12/02/the-octopus/

    By US National Archives, Posted In Crime, Justice, And Intelligence, Finding Aids, Journalism
    Today’s post is written by Alfie Paul, a processing archivist who works with civilian textual records.

    On an August day in 1991, the body of free-lance reporter Danny Casolaro was found dead in a Martinsburg, West Virginia motel bathtub by two maids. Ruled a suicide, Casolaro’s death was just a small piece of a larger conspiracy theory he had called The Octopus. Prior to his death, Casolaro had warned friends if they were ever told he had committed suicide not to believe it, and to know he had been murdered.

    Casolaro was in Martinsburg investigating a story that had become his obsession. He was writing a book about it that would allegedly uncover a web of intrigue that some believed included crime, politics, power, espionage, and the infamous “October Surprise” that helped sweep Ronald Reagan into the White House.

    The story centered on a piece of software called the Prosecutor’s Management Information System (PROMIS) developed by Inslaw, Inc. with financial support by the Department of Justice (DOJ). Inslaw alleged in a lawsuit that the DOJ subsequently stole and profited by the sale of PROMIS cheating Inslaw out of millions.

    There were several investigations into the allegations including one by the House Judiciary Committee. The ramifications of the case and the software in question are still being felt today. Casolaro and others believed that the Inslaw case was the center of a network of nefariousness. The bigger question of the conspiracy theory goes unanswered, though interest does not. The case was featured on Unsolved Mysteries; there are books about it; and websites.

    The Textual Division of the National Archives holds the records of the Department of Justice (RG 60). In the last year, several series were processed dealing with the Inslaw case. One in particular has quite an interesting array of files dealing with the Inslaw investigations, Casolaro, his theories, and his death. Come investigate and decide whom you believe.

    Please note, the following series must be screened for personal privacy and law enforcement information under 5 U.S.C 552(b) prior to public release:

    “Records Relating to Inslaw, 1991-1994” (ARC ID 4700613)
    “Subject Files of the Attorney General, 1975-1993” (ARC ID 651799)
    “Sensitive Files of the Attorney General, 1986-1991” (ARC ID 652403)
    “Subject Files of the Chief of Staff, 1991-1993” (ARC ID 4504693)
    “Subject Files of the Associate Deputy Attorney General, 1969-1994” (ARC ID 1489243)
    “Organizational Files of the Deputy Attorney General, 1981-1994” (ARC ID 1341742)
    “Sensitive Correspondence Files, 1988-1989” (ARC ID 647040): this entry has been integrated into “Sensitive Files of the Attorney General, 1986-1991” (ARC ID 652403) (also listed above).

    Reply

  5. MICHAEL PACUT

    IT WAS CIA ASSASSINATION OF A US JOURNALIST TO COVERUP ON CIA COVERUP CRIMES…I KNOW AS I AM INCVESTIGATIVE NEWSMAN MICHAEL F PACUT WHO REPORTED ON WOODSTOCK NY PUBLIC TV 1996-2005 ON CIA COVERUPS ON 1) THE 19763 CIA/MAFIA ASSASSINATION OF PRESIDENT JOHN F KENNEDY AND ON THE CIA COVERUP ON GTH AND GW BUSHS IRAQ WARTIMES LIES OF WMDS THAT DID NOT EXIST SO BUSH AND CHENEY COULD GRAB IRAQ OILFIELDS IN 2003 AND I REPORTED ON THE COVERUP ON CIA/ MARINE OLLIE NORTH CONTRAS DRUG TRAFFICKING ATN CAMP PENDLETON MARINE BASE IN CALIFORNIA. I TOO HAVE HAD NUMEROROUS CIA ASSASSINATION ATTEMPTS ON MY LIFE AS A US REPORTER COVERIN CIA CRIMINAL CVERUPS AND THE FBI KNOWS THAT IS A CLEAR AND UNDENIABLE FACT. TODAY IS OCTOBER 21 2023….MICHAEL F PACUT

    Reply

  6. Tricia

    I wonder if the note that was left was in Danny’s handwriting? Who’s to say he wasn’t forced to write it. Maybe he tried to leave clues in it.
    I would like to know who let the water out of the tub and why.
    Who removed the towels out of the bathroom?
    Did they even dust the room and bathroom for prints?
    Apparently the two rooms on either side of him had people staying. One was a family and the other was a man. Who is to say that they weren’t in on it to? Who is to say they used their real names etc… Who said they saw him before he passed?
    Did anybody find out about the head trauma and the arm? I would’ve figured that someone would’ve heard him. If I understood correctly they removed his nails? That sure would hurt! If he did that to himself why? And why didn’t they find them? Did they bother to talk to the staff and where was security at? What about cameras? Do they even know when he passed? Why didn’t he make copies before he left and either hide them somewhere or leave them in a safe or some sort of lockbox with either a key or a combination lock. Then tell a person whom he trusted enough where he placed them and either give them the combination or key to retrieve them if something were to happen to him?
    Did they check really well? He could’ve left clues under something, behind things…
    To many unanswered questions and no leads. I pray God gives the family closure soon.

    Reply

  7. Anonymous

    It was a lot different in the 90s. Today you can make any news story about any politician. But back then, if you defamed the justice department, they would threaten all kinds of lawsuits. So it wasn’t as simple as making a scandal back then as it is today. His hard work was having him go broke. He gave one final column in his letter before death.

    Reply

  8. JT

    It’s very odd that another journalist, gary webb died from an “apparent suicide” when investigating the cia’s involvement and collusion with cartels, arms dealers so that Reagan admin could fund/support the contras since congress didn’t want to fund it. (There’s a movie based on him btw) I mention this because Inslaw aka “the octopus” was mentioned to have links to both high level government officials and high level underworld groups/individuals. The pace at which they were able to embalm and do the autopsy on Danny Casolaro is suspicious in itself. Then you add the missing finger nails that would make sense if it was torture to get Danny to admit what he knew, who else was involved, if there was any copies etc.who commits suicide in that manner anyways? One of his wrist was cut so deep he cut the tendon, it doesn’t make any sense, don’t people start losing control of their fingers when they start cutting their wrist? I honestly believe they injected him with a paralytic agent afterwards and set the scene up. Sad that these journalist literally devote their lives and in cases like this sacrifice themselves for the greater good of the country.

    Reply

  9. Patrick

    Maybe the decorated military man was wise to Danny’s murder in some capacity and couldn’t say anything. The military man was appalled by it all so he decided to honor Danny on his own terms for all his hard work in seeking the truth. He showed up alone to the funeral and just left to not raise more questions. He knew something, the military doesn’t just show up and give medals at random funerals to non military people. Just speculating.

    Reply

  10. Legal Beagle 17

    Have there been any FOIA requests made? Has the casket been exhumed to retrieve the medal to see what it is? Did any of these locations have CCTV cameras? Obviously, Dan went to Martinsburg to follow a lead, only this time, the lead was a trap. Most people don’t realize how many Feds actually live in Martinsburg and work in DC. It seems like a long way, but there’s a MARC train that runs from Martinsburg to downtown DC, takes an hour and a half or so. I’m sure he had such a contact there and was meeting them. I can’t begin to know what Dan found out, but he went down the rabbit hole and whatever he found was big enough to get him killed, have the local police dispose of evidence, and have the coroner embalm him. This wasn’t ineptitude: it was deliberate. During the time, with boys town, the franklin scandal, and a multitude of other related government corruption issues, it may have been safe to say there was some kind of connection. I started doing my own investigation into this, but there are some things that it’s better to take the safe, rather than sorry, route. This is one of those things. Dan wasn’t the only journalist during the time to have met a suspicious demise right on the cusp of opening a big can of worms that clearly the powers that be wanted to keep a lid on.

    Reply

  11. Bubs

    This is incredibly scary. There are dark forces working inside governments that are very dangerous and come with a high price. Unfortunately Danny was in too deep and had information that would be expose that. Rest in peace…

    Reply

  12. Tony Taylor

    Jeff is that Deanna? I sure would like to discuss some things with her. Anyway we can exchange information? Thanks!

    Reply

  13. Jeff Smoot

    My mother found this man in room 517 in Martinsburg WV. It still haunts her to this day

    Reply

  14. Robb

    With suicide by cutting one needs to pay attention to the cuts. Most people do not know that the blood with any cuts —unless diabetic or on thinners—will clog up right away. It’s weitten that he had 8 on his opposite wrists which makes sense, however they clog, which is why he went to the other wriste. Someone would have to know this in order to fake his murder. I would look for a inside person that worked with suicides and or that attempts themselves. He probably didn’t die from cutting. If they were across the wrist it was fake and he didnt die from it.if there lengwise and it hit the main vain then it could have been. Look at the direction of the cuts

    Reply

  15. William Callahan

    This is what happens when you start messing with the upper levels of the federal government without being prepared or not realizing the scope of what you are doing
    Presidents come and go but there are people that are very powerful and entrenched.

    Reply

  16. Polly

    I would like to know who paid for the embalming if he was embalmed before his family was notified. He was not a local and anyone from the Martinsburg Area knows payment arrangements have ti to be made before embalming. Not every body gets embalmed after death
    .

    Reply

  17. Bill Blaski

    Do you know about pizza gate? Google it and see for your self

    Reply

  18. Dan Faircloth

    I have a friend who used to be a manager of the Holliday Inn in Martinsburg (it’s in the same building that used to be the Sheraton). He said that his ghost still haunts room 517. Housekeepers say they have heard him or have seen his ghost. Don’t know if it’s true but I thought people might find it interesting.

    Reply

  19. Leigh

    Unless the majority of the victims’s wrist wounds were very superficial, it would seem impossible for him to continue to continue cutting. In cases of suicide by cutting one’s own wrists, typically the non-dominant wrist is cut much deeper than the dominant wrist, as one would usually start cutting with the dominant hand, causing significant damage to the opposite wrist, up to severing tendons. Severe cuts and/or tendon damage makes it very difficult to grip the blade to cause damage to the opposite wrist. This poor guy had a lot of cuts. Not typical, again, unless the majority of the cuts were not significantly damaging.

    Reply

    • Rob R

      A note on this. Dan Casolaro was known by friends and family to be very squeamish towards pain and the site of his own blood. Suicides that have such issues, but choose the wrist slashing method will frequently have “exploratory wounds” that result from them testing their threshold for pain before they go for it. Casolaro had none of these.

      Reply

  20. Michaelwhaws

    Forex

    Reply

  21. Private Investigator

    The only thing that makes me think it is not murder is that someone saw him a few minutes before his death and said he looked a bit depressed… He was taking antidepressants at the moment and had early-stage MS. Who knows, perhaps the depression or meds drove him to suicide?:/

    Of course, murder is not out of the realm of possibility here. What would investigators say about this case now?

    Reply

    • Kim

      Well tell me what happened to his files and the paper work he received that evening? Some one was there with him and I am sure he wouldn’t of handed them off to anyone else, do you?
      He was murdered and his files have never been found. Pretty evident.

      Reply

  22. Chanita

    OK What Was The Question Again? If It Was A Cover Up Then Why Would Someone do That? Somebody Needs To Pay For What They Did To That Young Man The Way He Was Killed That’s Not Right!

    Reply

  23. wow

    Sure seems like the military man showing up and putting a medal on a civilians casket was just a nice warning to anyone who would try to follow the young man’s story. Man I would have had them stop lowering just to see what the medal was. Sad for the family. God bless.

    Reply

  24. Spooky

    I’m wondering when did INSLAW began.

    Reply

  25. Jones in for Justice

    Sure it was murder but the lack of proper investigation was due to the poor experience and education of the West Virginia law enforcement in charge of handling this case. Even if they had done their job who is West Virginia to rat out the Federal Government.

    Reply

    • Dan Faircloth

      Yeah his killers probably chose Martinsburg to kill him in because they are the most inept police force in the D.C. Metropolitan area.

      Reply

  26. Anonymous

    The same dark forces that took down Jfk are the same dark forces that continue to rein and control the lies and corruption in our government. This young reporter was on to something and someone had him silence. May he rest in peace knowing that his death is not invein. What a brave soul.

    Reply

  27. charles hopper

    I am not a PI. I would agree it was an cover up. But I can say this,It is murder and it was cover up by government officials and your local law enforcement did an very poor job of investigation. Ya brother was murder. If ya can find anybody that knows any thing I would ask them to take an lie detector test by a outside source that is not in with the law enforcement. If they refuse then they have got something to hide. An lie detector test is not permitted in court. But I would get everything I could about what your brother was working in that case and I would request an investigation by U.S.Department of Justice and U.S.Congress and if they refuse. They have something to hide.

    Reply

    • Rick the Rooler

      Lie Detectors are notoriously inaccurate. They don’t “detect lies”. They read changes in breathing, pulse rate, heart rate. Want more? One of the inventors of the lie detector was the guy who came up with Wonder Woman! Yup, the guy who came up with the “golden lasso of truth”. My guess is that the people who refuse to take lie detectors just aren’t big fans of the Wonder Woman comic books.

      Reply

  28. IV

    “Police have a rule in this country. Government people have a rule. When they screw up, they cover up. Sad but true.”

    With technology that we have today with the internet, youtube, cellphone cameras and iphones, everyone can see that the police have not changed. Even before the days of Serpico, the police have always been an evil organization.

    Reply

  29. TMC

    All the signs of cover up Murder. Mr DC was very passionate about his work. Per UM report; basic investigative procedures were not followed. Dora the Explorer would have done a better job than local police and medical authorities. Family keep the faith DC did Not commit suicide!!!

    Reply

  30. Mys Tery Girl

    The only thing that makes me think it’s not murder is that someone saw him shortly before his death and said he looked “depressed”. He was taking antidepressants at the time and had early-stage MS. Perhaps the depression or meds drove him to suicide?

    Of course, murder is not out of the realm of possibility here.

    Reply

    • Mara

      Who was that “someone”? Some random? Possibly a person paid to say those things to help the “suicide” narrative. “Looking depressed” in what sense? People can look depressed over many things, like a long hard day, not having a pleasant work week, over tired, feeling under the weather, relationship issues, etc

      Reply

  31. Rebecca

    Cold blooded murder. He knew too much, they didn’t want to get exposed so they silenced him by saying “He committed suicide” and by producing a “fabricated suicide note.” No one informed the family of Danny’s death until two days later. Suspicious. They embalmed the body without his family consent. Guilty. It’s definitely a cover-up. My prayers goes out to this family. So sad no closure for this family due to all the unanswered questions surrounding Danny’s death.

    Reply

  32. Dahlia

    Murder!

    Reply

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