Podcast Summary: Small Town Murder Episode #594 - Family Murder Spree: Chugiak, Alaska Release Date: May 9, 2025 Hosts: James Petragallo & Jimmy Whisman
Introduction
In Episode #594 of Small Town Murder, hosts James Petragallo and Jimmy Whisman delve into a chilling case from Chugiak, Alaska—a seemingly tranquil suburb where tragedy strikes unexpectedly. This episode uncovers the layers of a family-involved murder spree, exploring the motivations, actions, and aftermath of the perpetrators.
The Town of Chugiak, Alaska
Chugiak is portrayed as a small yet affluent suburb of Anchorage, Alaska, with a population of approximately 6,563. The town is characterized by large estates, extensive land plots, and a median household income of $69,000. Despite its size, Chugiak offers a close-knit community atmosphere with events like the annual Bear Paw Festival, featuring peculiar contests such as the Slippery Salmon Olympics and Human Foosball.
"Chuggiak was first really heavily settled in the 1950s, mainly from former military personnel who were stationed in Alaska during World War II. They just stayed up there."
— James Petragallo [06:04]
The Murder Incident
On the evening of October 19, 1990, a tragic event unfolded when an 18-year-old named Jeffrey Kane was fatally shot in the back of the head by a bullet fired from a passing car. Kane was in a red Toyota MR2, heading to a date, when his vehicle was struck by a bullet from a copper-colored AMC Eagle driven by Raymond (R.D.) Cheeley Jr., with Douglas Gustafson in the passenger seat.
"The bullet went through the rear window, hit Jeffrey Kane in the back of the head, killed him instantly."
— James Petragallo [27:42]
The Perpetrators and Their Background
Douglas Gustafson and Raymond Cheeley Jr. were both 18-year-olds residing in Chugiak. Gustafson worked evening shifts at South Central Air and was a baggage handler at the local airport. Cheeley, though driving Gustafson's car, had a history of vandalism and conflicts within the community, including a previous incident where he retaliated against a neighbor who caught him vandalizing mailboxes.
Peggy, Douglas’s older sister, played a significant role in escalating the family's criminal activities. Coming from a Jehovah's Witness family, Peggy had a tumultuous past, including shoplifting convictions. Her involvement deepened as she coordinated with her brothers to seek vengeance against Jeffrey Kane, whom they wrongfully blamed for the earlier highway shooting.
The Investigation
Following the murder, George Kerr, a friend of Gustafson, felt guilty and reported the incident to the authorities. This act initiated a series of investigations that eventually led to the unraveling of the murder plot. Experts highlighted the improbability of accurately hitting a moving target under the described conditions, suggesting Gustafson's act was both deliberate and calculated.
"Hitting a moving target in the first place is tough. And then when you're moving also, it just adds to the problem."
— Jimmy Whisman [28:52]
The Bombing of David Kerr and Michelle Kerr
In a bid for revenge, the Gustafson family orchestrated a bomb plot targeting David Kerr, George Kerr’s father. On September 17, 1991, David and his wife Michelle received a mailed package that exploded, killing David instantly and leaving Michelle with severe injuries. The bomb was meticulously crafted by Peggy with the assistance of her brother Craig, involving intricate components that evaded prison security measures.
"I sent that puppy flying over my car, and I looked back and he moved, and I went back and he was still alive. And Douglas said, so you backed over it? No, she replied, I let him know exactly who I was, and then I broke his neck."
— James Petragallo [60:00]
The Arrests and Trials
The investigation led to the arrest of Douglas Gustafson and Raymond Cheeley Jr. in November 1990. Peggy and Craig Gustafson were apprehended in 1992 for their roles in the bomb plot. Their trials revealed the extent of the family's involvement, with Peggy expressing remorse during sentencing, claiming her actions were influenced by her brother's behavior and personal turmoil during pregnancy.
- Douglas Gustafson was sentenced to life in prison without parole, plus an additional 30 years for tampering with evidence.
- Raymond Cheeley Jr. received two life sentences without the possibility of parole, plus 85 years.
- Peggy Gustafson was sentenced to 24 years and three months in prison.
- Craig Gustafson initially fled but later pleaded guilty, receiving 21 years and 10 months, followed by five years of probation.
"If I could give my life to bring David Kerr back and fix Mrs. Kerr, I would. Fix her face."
— Peggy Gustafson [69:25]
Conclusion and Aftermath
The Chugiak murder spree left an indelible mark on the small community, illustrating how underlying family issues and misguided vengeance can culminate in devastating violence. While most of the perpetrators remain incarcerated, the repercussions of their actions continue to affect the lives of those involved, particularly Michelle Kerr, who endured lifelong physical and emotional scars.
James and Jimmy conclude the episode by reflecting on the severity of the crimes and the lasting impact on Chugiak, emphasizing the unpredictable nature of small-town dynamics and the hidden darkness that can lie beneath seemingly peaceful façades.
Notable Quotes:
-
"Murder in the second degree is when you commit an act that's so outrageous you would have to assume it endangers life."
— James Petragallo [42:10] -
"It's one of the worst second degree murders he could think of... is among the very worst that could be possibly done."
— Judge during Sentencing [47:04] -
"You're never getting out of prison."
— James Petragallo [75:38]
Key Takeaways:
- Family Dynamics: The Gustafson family's internal conflicts and misguided loyalty led to extreme actions.
- Community Impact: Small towns can harbor hidden tensions that, when ignited, result in tragic consequences.
- Justice System: The trials showcased the complexities of prosecuting familial conspiracies and the challenges in ensuring fair trials amidst high publicity.
Listen to the full episode for an in-depth exploration of this harrowing case and the intricate web of motives that fueled the family murder spree in Chugiak, Alaska.