Scams, Money, & Murder – Episode Summary

Episode Title: 40 Years Later: The Murder of Sherri Rasmussen Pt. 2 | Murder: True Crime Stories

Hosts: Vanessa Richardson & Carter Roy
Release Date: March 1, 2026
Podcast: Scams, Money, & Murder (Crime House Original by PAVE Studios)

Episode Overview

This gripping episode dives deep into the investigation—and decades-long mishandling—of the 1986 murder of Sherri Rasmussen in Los Angeles. Hosts Vanessa Richardson and Carter Roy meticulously unravel the evidence, explore the tangled motives, and highlight how institutional blind spots and police loyalty shielded Sherri’s killer, who was herself a cop, for more than 20 years. The episode is a sobering look at the dangers of investigative tunnel vision, the resilience of a victim’s family, and the eventual reckoning that brought one of the LAPD’s own to justice.

Key Discussion Points and Insights

1. Discovery of the Crime & Initial Investigation

• Event Recap – On February 24, 1986, John Rutten returned home to find his wife Sherri beaten and shot to death in their condo (06:20).

• Initial Theory – LAPD quickly assumed a burglary gone wrong, citing missing electronics and the stolen BMW as primary evidence (07:37).

• Forensic Evidence – Investigators found a white rope, speaker wire (attempted ligature), stray fingernails, blood trails, a bite mark on Sherri's arm, and a distinctive red fingerprint on electronics. Several bullet holes were discovered in a blanket (08:45).

  “It looked like the killer had tried to tie Sherry up... investigators found several bullet holes in [the blanket]. The killer had probably used it as a kind of silencer.” – Vanessa Richardson (08:45)

• Missed Clues – Detectives overlooked key evidence, including the bloody fingerprint on the CD player and the true significance of the bite mark.

2. Suspect Pool Narrowed by Bias

• John Rutten’s Alibi – Ruled out early due to “genuine” shock/grief. He withheld information about marital conflict and his ex-girlfriend, Stephanie Lazarus, who was stalking the couple (11:17).
• Family Concerns Ignored – Sherri’s father, Nels Rasmussen, insisted Stephanie be investigated as a suspect, but detectives dismissed this and focused on robbery/burglary leads (13:00, 21:55).
• Early Suspects – Police also briefly considered a nurse from Sherri’s workplace due to professional jealousy but quickly discounted her after interviewing coworkers (24:56).
• Evidence Contradictions – Although electronics were stacked for removal, valuables and jewelry upstairs were untouched, undermining the burglary theory (10:06).

3. Forensic Shortcomings and Procedural Failures

• Primitive Forensics – In 1986, forensics relied on fingerprints and blood type from saliva, not DNA (14:39).

• Saliva Sample – The bite mark on Sherri’s arm was identified as pivotal evidence; a saliva sample was saved (17:02).

  "The bite mark seemed like especially strong evidence... forensic experts could determine someone’s blood type based on their saliva." – Carter Roy (17:02)

• LAPD Sidearm Connection – Police ammunition (.38 caliber) matched murder bullets, and Stephanie reported her police revolver stolen just days after Sherri’s murder—yet this was never investigated seriously at the time (26:04, 27:59).

  “Two weeks after her death, a potential murder weapon disappeared and the best chance to catch Sherry’s killer went up in smoke.” – Carter Roy (27:59)

4. Case Goes Cold & Family’s Struggle for Justice

• Investigation Stagnates – Despite similar burglaries in the neighborhood and a $10,000 reward, all leads led nowhere. The case was deprioritized; detectives retired or left (32:50, 34:39).
• Family Alienation – John remarried and became estranged from Sherri's family, while the Rasmussens pressed the LAPD with little success (33:54).

5. Reopening the Case (2009) and the DNA Breakthrough

• Modern Review – Decades later, Detective Jim Nuttall rediscovered the file and flagged the preserved forensic evidence, especially the bite mark (34:39, 35:52).

• DNA Testing – In 2005, LAPD analyst Jennifer Francis found the bite mark belonged to a woman, a rare finding for murder cases (35:52).

• Key Interview – When re-interviewed in 2009, John immediately named Stephanie Lazarus as someone worth investigating (37:05).

• Undercover DNA Collection – Detectives obtained Stephanie’s DNA via a discarded soda cup. In May 2009, her DNA matched the bite mark on Sherri (40:17–41:08).

  “Officers brought the items to analysts… the next day, experts had officially matched Stephanie’s DNA to the saliva in the bite mark on Sherry’s forearm. The evidence was irrefutable.” – Carter Roy (41:08)

6. Arrest, Trial, and Aftermath

• Stephanie's Arrest – Using a ruse, officers lured her into an interrogation room and arrested her for murder (41:41).

  “That’s when she realized she was the one being investigated.” – Vanessa Richardson (41:41)

• Trial and Conviction – Stephanie was tried and found guilty in 2012; sentenced to 27 years to life (42:37).

• LAPD’s Reputation – The department claimed the system worked, but the Rasmussens and public believed there had been a cover-up:

  “Many, including Sherry’s family, believed the department had spent years covering up her involvement.” – Vanessa Richardson (41:41)

• Civil Litigation – Rasmussens’ wrongful death suit against LAPD and the city was dismissed due to government immunity. No officer was held accountable for the mishandling or for ignoring the family’s suspicions (44:00–44:46).

• Stephanie’s Confession & Parole Denial – She confessed during her 2023 parole hearing. Sherri’s family, including ex-husband John, fought against her release; her parole was denied (45:16).

  “Neither he nor Sherry’s mother believed she had shown any genuine remorse. Stephanie’s request was denied in 2023 and again in 2025.” – Vanessa Richardson (45:16)

Timestamps for Key Segments

• Crime Discovery & Early Investigation: 06:20–11:17
• Ignored Suspects & Family Advocacy: 13:00–21:55
• Forensic Evidence & LAPD Sidearm: 24:56–27:59
• Case Cools, Family & Media Efforts: 32:50–34:39
• Case Reopened—DNA Era: 35:52–41:08
• Stephanie's Arrest & Trial: 41:41–44:46
• Aftermath & Parole: 45:16–46:05
• Closing Reflection: 46:05

Notable Quotes & Memorable Moments

• Carter Roy (reflecting on justice lost and found):

  "People’s lives are like a story. There’s a beginning, a middle, and an end. But you don’t always know which part you’re on. And sometimes, the final chapter arrives far too soon. And we don’t always get to know the real ending." (01:49)

• Vanessa Richardson (on the evidence ignored):

  “The pile of electronics next to her body suggested the culprit intended to rob the place… On the other hand, the second floor of the condo seemed untouched. Sherry’s jewelry box hadn’t been rifled through.” (07:37–10:06)

• Carter Roy (on LAPD failures):

  “It took 22 years for a curious officer to dig the old binder out of its cardboard box and take a look.” (34:39)

• Vanessa Richardson (on the need for transparency):

  “Her story should remind us all how important transparency is during a criminal investigation because everyone has blind spots, even seasoned homicide detectives who are trying to do their job.” (46:05)

Episode Highlights

• LAPD’s investigative failures and family’s persistent advocacy take center stage, showing how police bias and institutional loyalty can obstruct justice.
• Forensics—specifically DNA extracted from preserved evidence—proved essential in finally solving the case decades later.
• Stephanie Lazarus’ arrest and conviction represent a rare instance of police being held to account, though her eventual confession came much too late for true closure.
• The hosts question notions of accountability, transparency, and who gets to control the narrative in long-unsolved crimes.

Overall Tone

• Compassionate, detailed, and critical.
• The hosts treat Sherri’s memory with respect while holding authorities accountable and highlighting the dangers of investigative blind spots, especially when police investigate their own.

Conclusion

This episode is a powerful reminder that justice delayed is too often justice denied. The failures—and eventual triumph—in the investigation of Sherri Rasmussen’s murder underscore the importance of unbiased investigation, the irreplaceable role of families in demanding accountability, and the uncomfortable reality that those sworn to protect can sometimes become perpetrators.