8. The Breakthrough

Summary

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Podcast Summary: The Unforgotten – Season 1, Episode 8: "The Breakthrough"

Release Date: August 19, 2024
Hosted by Carol Dawson and Wes Ferguson (Free Range Productions)

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Overview

In Episode 8, "The Breakthrough," Carol Dawson and Wes Ferguson delve into major developments in the 30-year unsolved murder of Shelley Salter Watkins ("The Labor Day Ghost"). The episode focuses on recent efforts by the Henderson County Sheriff’s Office to leverage new forensic DNA technologies and genealogical research, explores the persistent influence and relationships in Jerry Mack Watkins’ inner circle, and uncovers how power, silence, and money have shaped this long-cold case.

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Key Discussion Points & Insights

1. The DNA Breakthrough – Or Is It?

• Recent Advances: Sheriff Bodie Hillhouse reveals the department collected all possible evidence from Shelly Watkins’ crime scene (plastic, tape, clothing, ropes) and sent it for advanced DNA analysis in California.
• Touch DNA Identified: The lab found a possible male DNA profile among the evidence.
• No CODIS Match: The DNA profile was entered into the federal database CODIS, but produced no matches.

  Sheriff Hillhouse: "They were able to get a profile. Male profile... it's been entered into CODIS. Yeah, nothing. No hits on it." (03:06)

• Jerry Mack Eliminated: A direct comparison excludes Jerry Mack and his family as the source of this DNA.

  Hillhouse: "We went back and got another search, went down, got Jerry Mack’s DNA and it did not match." (03:21)

• Search For Help: The case’s lead investigators keep changing jobs, delaying progress. The sheriff turned to genealogists to identify the DNA through family trees.

2. Genealogy as a Tool (But With Obstacles)

• Forensic Genealogy Hopes: Hillhouse describes reaching out to a genealogy expert in Denton County (likely Cheryl Hester) to build a family tree from the DNA and find leads.

  Hillhouse: "This lady has assisted in solving some very high profile cases... she's very interested in this case." (05:02)

• No Actual Progress: Hester's company, Advanced DNA, tells the journalists she's never worked the Watkins case. The genealogical angle, built up as huge, in reality has seen no movement.
• Communication Breakdown: Carol and Wes detail being repeatedly stonewalled by the sheriff’s department. Initial enthusiasm from Sheriff Hillhouse faded to complete silence after the first interview.

3. The Core Circle of Jerry Mack Watkins

Carol and Wes investigate those closest to Jerry Mack – friends and associates who may have information about the night Shelly vanished or may have helped him after the crime.

a) Kay Watkins (Jerry Mack's Wife)

• Backstory: Kay, originally married to Jerry Mack’s college roommate Dennis, lived nearby during Shelly’s life. She and Jerry Mack were reputedly close; alleged by multiple sources to have had an affair prior to Shelly’s death.
• Post-crime Support: Kay helped Jerry Mack during the grand jury proceedings and later married him, adopting Shelly’s daughters.

  "Less than three months after the indictment was dropped, Kaye filed for divorce... Jerry Mack and Kay were married soon thereafter in Hawaii." (13:28)

• Legal Shield: As Jerry Mack’s wife, she cannot be compelled to testify against him after their marriage, but could be forced if new charges involve the period before.
• Quote:
  Sandy (Shelly’s sister): "There's not any part of this whole thing since the day she was killed that has even been slightly legitimate." (25:52)

b) Carolyn Taylor (The Poker Queen)

• Role: Shelly’s supportive neighbor, and a key grand jury witness against Jerry Mack. Longtime rivalry developed into an odd friendship after Carolyn was arrested in a raid and subsequently started working for Jerry Mack’s father, Carmack Watkins.
• Dependency: Carmack gave Carolyn loans, cash, and jobs after her business closed.
• Endgame: Despite her initial hatred, Carolyn became close to Jerry Mack and Kay, and Jerry Mack was her pallbearer.

c) Louis Palos (The Cop and "Brother")

• History: Jerry Mack’s childhood friend and former Corsicana police officer. Key suspect in helping cover up the crime, he quietly filed Shelly’s missing person report outside protocol.
• Law Enforcement Suspicion: Hillhouse says investigators got a "highly nervous" impression from Palos during interviews and hoped his status as a church deacon might inspire confession.

  Hillhouse: "Investigators came back with an odd feeling. You know, he was highly nervous... you could just sense that something wasn't right." (20:01)

• Unobtained DNA: Investigators have not been able to acquire Palos’s DNA.

d) Gary Schlemmer (The Loyal Friend)

• Behind the Scenes: Lifelong bachelor tied to the Watkins payroll; a prime person of interest for investigators. Avoids speaking to journalists and relies financially on his relationship with Watkins Construction.

  Wes: "Gary seemed pretty rattled from the moment I introduced myself... Jerry Mack is Gary’s meal ticket." (33:54)

4. Alleged Misuse of the Trust Fund

• Manipulated Financial Safeguard: Jerry Mack, compelled by a wrongful death civil settlement to set up a $100,000 trust for his daughters (from Shelly), engineered a transfer where the trust fund was used to buy a virtually worthless property from his own company, keeping the money in the family.

  Wes: “He then sold two acres of his own construction company yard to the trust for $100,000... it has not accrued any value.” (24:22)

• Trustees’ Conflict of Interest: All three trust overseers were top Williams Construction employees, possibly undermining the intended independence of the trust.

  Sandy: "So I shot myself in the foot on that one, I guess." (24:17)

5. Law Enforcement Frustration & Stonewalling

• Communication Barriers: Journalists are systematically denied access as the investigation stalls.
• Theories: Possibilities for police silence range from active new inquiries to simple lack of evidence or unwillingness to admit stasis.
• Ex-FBI Perspective:

  Carolyn (ex-FBI): “You and I know who did it.” (09:25)

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Memorable Quotes & Moments

• Sheriff Bodie Hillhouse (on the DNA):
  “They were able to get a profile. Male profile...it's been entered into CODIS. Yeah, nothing. No hits on it.” (03:06)

• Carol Dawson (on the family tree):
  “Oh, that’s the family tree business. Gotcha.” (06:33)

• Sandy (Shelly’s sister):
  “There’s not any part of this whole thing since the day she was killed that has even been slightly legitimate. Every single thing has been a bad turn here, a bad turn there. All this power. And I’m just baffled by it…” (25:52)

• Wes Ferguson (on Gary Schlemmer):
  "That's none of your business, Gary says. I look up. The bartenders have all stopped pouring drinks. They're just standing there uncomfortably, watching us." (32:36)

• Carolyn (witness, reflecting on Jerry Mack):
  "The more that I was around him... he let his guard down. That's when I really saw Jerry Watkins for who he is. And I knew that that man was capable of anything." (34:55)

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Notable Segment Timestamps

• 00:01–01:38: Carol's interview with Sheriff Bodie Hillhouse; DNA evidence discussion.
• 03:00–04:13: Lab results, genealogist involvement, and lack of investigation progress.
• 10:15–14:18: Analysis of Kay Watkins' history and role.
• 15:09–16:11: Carolyn Taylor’s backstory and links to the Watkins family.
• 18:38–20:16: Interviews and suspicions surrounding Louis Palos.
• 20:38–24:22: The manipulation of the daughters' trust and financial machinations.
• 31:24–33:54: Wes Ferguson attempts to confront Gary Schlemmer.
• 34:55–35:25: Closing, with powerful reflection from someone who once trusted Jerry Mack.

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Tone & Style

The episode feels dogged, inquisitive, and at times, frustrated. Carol and Wes convey both fascination with new investigative tools and exasperation at the case’s enduring roadblocks—secrecy, influence, and conflicting loyalties. Their approach mixes narrative reporting, candid interviews, and forensic curiosity, all with a distinctly southern, small-town noir feel.

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Takeaway

Episode 8 unpacks how a potentially crucial DNA clue in Shelly Watkins’ murder has led to more questions, not fewer—exposing dead ends in both scientific analysis and local cooperation. The episode finds the "breakthrough" is not just forensic or procedural, but points instead to the insularity, influence, and power woven through the Watkins family’s orbit, the local justice system, and small-town social hierarchies. The mystery persists, yet the closer the reporters get to the heart of the circle, the more resistance – and silence – they encounter.

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Next Episode Preview:
As the team gains access to someone from inside Jerry Mack's trusted circle, they promise startling insights in Episode 9.

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Transcript

[Carol Dawson]

Today is April 14th, Friday. I'm talking with Sheriff Bodie Hillhouse in Athens, Texas. Thank you, Cheryl, for talking with me. I sure appreciate it. I'm sitting in the office of Bodie Hillhouse, the current sheriff of Henderson county, the same county where Shelly Watkins murder has remained unsolved for 30 years. So this case is technically still active.

[Sheriff Bodie Hillhouse]

This.

[Carol Dawson]

Can you talk at all about any of the lines you all are following up? Sheriff Hillhouse is about to tell me some news I can hardly believe. Remember when Shelly was found in the Trinity River? She was wrapped up like a package in black plastic and bound in duct tape. The sheriff's office saved all that material. The plastic sheets, the tape, her. Her clothing, the ropes, everything. What if there was a clue hidden among the evidence? Something that might have been overlooked or impossible to find? When shelly died in 1993, we gathered.

[Sheriff Bodie Hillhouse]

Up all the evidence, took it to California to a DNA lab to try to find some touch DNA that would.

[Carol Dawson]

Be inside the package she was wrapped in.

[Sheriff Bodie Hillhouse]

It was all the evidence that we took. I mean, we basically gathered up everything we had and took it to California and said, hey, can y' all go through this and see if you can find any touch DNA or any type of DNA that wasn't available at that time?

[Carolyn (witness or interviewee)]

Sure.

[Sheriff Bodie Hillhouse]

Changed dramatically. We found out we had a possible profile.

[Carol Dawson]

A possible profile? In other words. Sheriff Hillhouse has found the DNA of someone who apparently disposed of Shelly's body in the Trinity River. But whose DNA? My name is Carol Dawson.

[Wes Ferguson]

And I'm Wes Ferguson. You're listening to the unforgotten. Season 1 the Labor Day Ghost.

[Carol Dawson]

Chapter 8 the Breakthrough. Bodie Hillhouse looks like an archetypal Texan sheriff. His strong jaw and trim beard match the steady, pragmatic gaze of his brown eyes under their dark seagull wing eyebrows. He has a stocky build that can probably heft 50 pound sacks of horse feed or 50 pound bales of confiscated marijuana with equal ease.

[Wes Ferguson]

When Sheriff Hillhouse took office in 2017, he made Shelly's cold case a top priority. He assigned an experienced homicide investigator to the case.

[Sheriff Bodie Hillhouse]

And then he started digging in and running a lot of warrants and trying to gather different information.

[Wes Ferguson]

The most promising information was that DNA found among the materials with Shelly's body.

[Sheriff Bodie Hillhouse]

And they were able to get a profile. Male profile. Oh, and then they. Course it's been entered into codis. Yeah, Nothing. No hits on it.

[Wes Ferguson]

CODIS is the national DNA database managed by the FBI.

[Sheriff Bodie Hillhouse]

Then we went back and got another search, went down, got Jerry, Max, DNA and it did not match.

[Carol Dawson]

It did not match the profile. So it might not be him.

[Sheriff Bodie Hillhouse]

Well, that I don't know.

[Wes Ferguson]

Okay, this is interesting. A crime lab in California found male DNA on the evidence from when Shelley was recovered. But the DNA does not belong to Jerry Mack, nor does it match anyone in his family. Unfortunately, the lead investigator who was digging into Shelly's case quit when he got a higher paying job in the Dallas area. Sheriff Hillhouse assigned another investigator to the case. That investigator also left the department for a job in the Dallas area. So Sheriff Hillhouse has looked for help outside the department, someone who knows how to make the most out of a little DNA.

[Sheriff Bodie Hillhouse]

What we're trying to really focus on right now is working with the genealogists to see if the genealogist can help us with the profile, build a family tree, and point us in the direction where we need to go.

[Wes Ferguson]

Hillhouse is talking about forensic genealogy, a relatively new tool of law enforcement that combines genetic analysis with old fashioned genealogical research. If you can find relatives who share the same DNA, you might be able to work your way down a family tree to solve a cold case or identify previously unknown remains. One of the best known success stories of forensic genealogy was the arrest and conviction of the Golden State Killer in 2018. Carol asks Sheriff Hillhouse for the name of the genetic genealogist he's been in touch with. In the moment Hillhouse can't remember.

[Sheriff Bodie Hillhouse]

This lady has assisted in solving some very high profile profile cases. She's out of Denton, actually has ties to Novera County. Her family's from Novera County. She's very interested in this case.

[Wes Ferguson]

It sounds like he's talking about Cheryl Hester, who lives in Denton County, Texas, north of Dallas, and has been described as one of the nation's leading experts in solving crimes through genealogy. Hillhouse also tried to interest the FBI in the DNA from Shelly's case, but.

[Sheriff Bodie Hillhouse]

They did not choose to take this one for whatever reason. So I'm going to continue to work with her and try to get some profiles and see if she can tell me where I need to go with the investigation.

[Carol Dawson]

Interesting. So that DNA does not tie Jerry Mack directly.

[Sheriff Bodie Hillhouse]

I mean, well, that's what we were hoping for. I mean, he had help. He, he, he had help.

[Wes Ferguson]

Again, Jerry Mack Watkins has never been convicted of a crime. He is innocent until proven guilty. Sheriff Hillhouse said his investigators also questioned Jerry Mack's close friend Louis Palos. Remember, Lewis is the former Corsicana police officer whose controversial actions delayed the search for Shelly in 1990.

[Sheriff Bodie Hillhouse]

Three, it was fairly easy to write a search warrant for Jerry Mack's DNA. I gotta have enough to write the search warrant for pain losses. So that's why I'm kind of hoping the genealogist can.

[Carol Dawson]

Oh, that's the family tree business. Gotcha.

[Sheriff Bodie Hillhouse]

But, I mean, I've got an unknown profile. Yeah, I need to establish that family tree.

[Wes Ferguson]

The discovery of this unknown man's DNA seems like the biggest break in Shelly's case in three decades. But we've been digging into this exciting new development, and it turns out to not be so new after all. The sheriff's office took Jerry Mack's DNA sample in 2019. That was five years ago. We reached out to the genetic genealogist that Sheriff Hillhouse seemed to be talking about, her name's Cheryl Hester. To ask if she's had any luck tracing the family tree of this man using his DNA. But the spokesman for Hester's company, Advanced DNA, says she's never worked on Shelly's case. And what about those two former sheriff's investigators who were assigned to reopen Shell's cold case? We accidentally woke up one of them. I was wondering if you had a moment to speak about it.

[Carolyn (witness or interviewee)]

I'm sleeping, cuz I got off work at 9 this morning.

[Wes Ferguson]

Oh, my gosh.

[Carolyn (witness or interviewee)]

Yeah, and I got to go back.

[Wes Ferguson]

But I want you to get your sleep. Is there a better time? He told us to call him back that afternoon. He's never picked up our calls again. When we found the other investigator, he also told us to call him right back. When we did, he informed us that he'd just checked in with Sheriff Hillhouse. And the sheriff instructed his former investigator not to cooperate with us. Getting stonewalled by law enforcement is always disappointing. And unfortunately, it's nothing new for journalists who are trying to keep the public informed. But this one is strange because Sheriff Hillhouse was so candid when Carol interviewed him the first time. It's been over a year since that first interview in Sheriff Hillhouse's office. He has never responded to another call or email. And we're talking about a lot of calls and a lot of emails. I'm a journalist calling for Sheriff Hillhouse. Is Sheriff Hillhouse in yet? I was wondering if Sheriff Hillhouse was in bust every time. Okay. Could I leave another message for him? We also dropped by his office a few times. We were always turned away. How are we supposed to interpret this? I guess it could mean that Sheriff Hillhouse is close to breaking the case and he doesn't want members of the public jeopardizing his investigation. Or he could have found out that the DNA belongs not to a potential suspect, but to someone who simply handled Shelly's body when she was being pulled from the river or when her autopsy was being conducted. Or maybe the sheriff doesn't want to admit that another year has gone by when she with nothing to show for his efforts, we have no way of knowing. Whatever the reason, retired FBI agent Jeff Millslagel didn't seem too surprised when we told him about our problems trying to get answers to these questions.

[Carolyn (witness or interviewee)]

You and I know who did it.

[Wes Ferguson]

How do you prove it?

[Sandy (Shelly's sister)]

Well, it would be good if the.

[Carol Dawson]

New evidence that has been retrieved by.

[Sandy (Shelly's sister)]

The Henderson County Sheriff's Department proves fruitful.

[Wes Ferguson]

I don't have faith in that department to put a murder case together.

[Carolyn (witness or interviewee)]

There's not enough people over there working it. How are they going to put together.

[Wes Ferguson]

A murder case 30 years old? Well, Sheriff Hillhouse, you know how to reach us. We'd still love to talk. In the meantime, this unknown DNA raises new questions. Since Sheriff Hillhouse obviously still considers Jerry Mack to be his prime suspect. Who could have helped to hide a crime like that?

[Carol Dawson]

This is important, so let's take a quick moment to ask. Who are the people in Jerry Mack Watkins orbit who know better than anyone whether he is guilty or innocent? And how does Jerry Mack keep these people close? Their stories paint a picture of a man who knows how to get exactly what he wants. First up is Kay Watkins. Ask anybody about Kay and you almost always get the same response. She's so sweet. Back in 1993, Kay was married to Jerry Mack's college roommate, Dennis. Kay and Dennis lived just down the street from Jerry Mack and Shelley in the same neighborhood, Beaton Lake Estates. The young couples spent a lot of time together. We've been told by several people that Jerry Mack and Kay were especially close. When Shelley died. Kaye told investigators she spoke with Jerry Mack at 6:45am Less than seven hours after Shelley supposedly vanished. According to the search affidavit we have, Jerry Mack gave Kay lots of details about his fight with Shelley. How she'd threatened to leave and take the girls. So he took her keys and went back inside the house and fell asleep. Later, Kay helped with Jerry Mack's criminal defense. When the grand jury was deciding whether or not to indict him, Kay was one of a parade of witnesses who testified. In Texas, grand jury proceedings are supposed to be kept secret. Apparently, prosecutors in Henderson county didn't realize that because they allowed chief investigator Larry Warrick and Texas Ranger Ray Nutt into the room. The pair of investigators watched and listened to the testimony and even wrote down questions for prosecutors to ask. We're told that Jerry Mack's criminal attorney, Jack Zimmerman, was also allowed to observe the grand jury testimony, which is just as irregular. Hoping to quash Jerry Mack's indictment, Zimmerman complained that three of the witnesses had felt intimidated and nervous by the presence of the investigators. Those witnesses were Jerry Mack's brother Ronnie, his sister Janice, and his friend Kay. Remember, Kaye was a former neighbor of the Watkins. We've spoken with multiple people who spent time with Jerry Mack and Kay in the early 90s and suspected them of having an affair while Shelley was still alive. Shelley's brother Rob also says that he visited his sister's home in Corsicana during the year before her death when he stumbled onto Jerry Mack and Kay locked in a romantic embrace. A shocking scene he quickly disclosed to both his sister and his future wife. He also told his traveling companion that his brother in law was cheating on his sister, although the companion could not recall names or that specific incident. Less than three months after the indictment was dropped, Kaye filed for divorce from Jerry Mack's old college roommate, Dennis. Jerry Mack and Kay were married soon thereafter in Hawaii. We have been told by numerous friends and witnesses how badly Kay had always wanted children of her own. She became the stepmother of Shelly's two daughters and proceeded to legally adopt them. Shelly's daughters call Kaye mom. There's another benefit. As Jerry Mack's wife, Kaye cannot be compelled to ever testify against him or be deposed in a lawsuit against him about matters that have occurred after their marriage began. Since Jerry Mack and Kay were not married when Shelly died, Kay would not be granted spousal immunity if he ever faces new charges in Shelly's death.

[Wes Ferguson]

So that's K. This is Carolyn. Carolyn Taylor was the poker queen who lived across the street from Jerry Mack and Shelley. Remember, she and another neighbor told investigators the lights were on at the Watkins house till at least four in the morning the night Shelly disappeared. Carolyn's testimony helped get Jerry Mack indicted. Carolyn and Shelly were good friends. People tell us that Shelly often walked across the street to confide in her neighbor when she and Jerry Mack would have a fight. Numerous people, including her own family members, tell us that Carolyn hated Jerry Mack with a passion. Carolyn ran her gambling establishment for years. Local law enforcement had always turned a blind eye. Even District Attorney E. Ray Andrews placed bets with Carolyn.

[Carolyn (witness or interviewee)]

Yeah, I think Carolyn, I bet the football game for her.

[Wes Ferguson]

About one year after Jerry Mack's indictment was dropped. The sheriff's department raided Carolyn's home and party room. Carolyn, her cook and all her customers were arrested and booked into jail. Navarro county had a relatively new sheriff, Les Cotton. Sheriff Cotton is said to have been allied with Jerry Mack's dad, Carmack Watkins.

[Carolyn (witness or interviewee)]

The Watkins were major players in Navarro county and Carmack was big law enforcement supporter in Navarro County.

[Wes Ferguson]

This is former Corsicana police Chief GM Cox.

[Carolyn (witness or interviewee)]

I almost guarantee you he was a major contributor to Les Cotton's campaign game.

[Wes Ferguson]

Warden Rick Thomas also told us about Carmack Watkins influence on among Corsicana law enforcement.

[Carolyn (witness or interviewee)]

Father in law is known as the godfather. You know, he was always nice to me, but you don't see the other side. And he definitely had another side.

[Wes Ferguson]

From what I understood, Carolyn had always had a clean criminal record until her gambling room got raided. She was sentenced to three days in jail and fined $2,000.

[Carol Dawson]

When Carolyn showed up at the Navarro county jail for her three day incarceration, she brought with her a set of hair rollers, a pair of silk pajamas, toiletries, makeup and other luxuries, ready to spend her cell days in comfort. Of course, these were immediately confiscated and she was handed an inmate uniform instead. After three days, Carolyn was released to return home the home where she'd made a living from gamblers. Now her party room was closed, her gaming business over. Carolyn needed a job.

[Wes Ferguson]

She found one at Watkins Construction.

[Carolyn (witness or interviewee)]

I know after Carolyn got busted, she couldn't have no poker games for 10 years. That she was getting a paycheck from Carmack Watkins.

[Wes Ferguson]

This is a firsthand witness. It's annoying, but we've altered her voice at the witness's request. It's practically the only way to get people in Corsicana to talk about Jerry Mack.

[Carolyn (witness or interviewee)]

I had to go to his office and she was there working for him, doing nothing, just sitting there.

[Carol Dawson]

How did you know she was doing a paycheck?

[Carolyn (witness or interviewee)]

Because he told me. Because I asked and I said, is Carolyn working for you now? Yeah, she's working for me.

[Wes Ferguson]

Jerry Mack's dad, Carmack, also gave Carolyn a number of cash advances and real estate loans over the years. County records show that she didn't always pay him back, but he kept the money coming. Was he a generous man helping a friend out of a jam? A savvy businessman hoping to recoup a bigger payday down the road? We have no way of knowing. We do know that Carolyn ended up growing very close to Jerry Mack and Kay. When her health began to fail her, she worked nights for Watkins Construction using a GPS device to track the movements of company trucks. She performed this job across the street from the house where Jerry Mack and Shelley had once lived. When Carolyn moved into a nursing home, Jerry Mack and Kay were her frequent visitors. And when she died, Jerry Mack, a man she once hated, was named one of her pallbearers. So that's Carolyn. Next on deck is Louis Palos.

[Carol Dawson]

We met Louis Palos way back in Chapter three.

[Carolyn (witness or interviewee)]

I haven't talked about that case to anybody because they're still under investigation.

[Carol Dawson]

Lewis is the former Corsicana police officer who's been like a brother to Jerry Mack since childhood, even though Lewis is about six years Jerry Mack's senior. For many years, Lewis lived on Watkins family land outside of Corsicana, in the rural community where they grew up. Lewis was always welcome at the Jerry Mack Watkins house for a swim or a meal, even if no one was home. And he kept horses on Jerry Mack's 40 acre property. We spoke to one man who says he walked in on them wrestling together one time. Nothing sexual, he says, but it demonstrates their easy familiarity. Jerry Mack and Shelley's daughters call him Uncle Lewis. They grew up with him always around. Lewis has said he was the first person Jerry Mack alerted when Shelley went missing. Lewis quietly filed Shelley's missing person report without notifying his chief or his fellow officers, bypassing protocol. He also kept the case to himself, even though it was not in the police department's jurisdiction. When I interviewed Sheriff Hillhouse, he said his investigators had been in touch with Lewis.

[Sheriff Bodie Hillhouse]

We have visited him and interviewed him again. And I mean, investigators came back with an odd feeling. You know, he was highly nervous. He know you can just sense that something wasn't right.

[Carol Dawson]

Well, you know, he is a deacon in the Catholic Church. He hoped Lewis's high ranking affiliation with the church would trip his conscience. If Lewis had anything to share, it.

[Sheriff Bodie Hillhouse]

Was hopeful with what he's doing currently. We tried to use that avenue if he would just come out with it, but it, it, it didn't work at the time.

[Carol Dawson]

Have you gotten Louis Palos's DNA?

[Sheriff Bodie Hillhouse]

We have not gotten it yet. We have not gotten it yet.

[Carol Dawson]

Eventually, when Wes knocked on Lewis's door, he asked Lewis directly if he'd provided any of his DNA to law enforcement.

[Carolyn (witness or interviewee)]

I'm not gonna. I don't want to. I don't want to say anything.

[Carol Dawson]

Lewis was questioned and cleared by law enforcement in 1993. He has never been charged with any crime. His close association with the Watkins family has been rewarding for him. In fact, the year after Jerry Mack's indictment was dismissed. Lewis founded a new business called Palos Enterprises Incorporated. His articles of incorporation list a surprisingly wide array of transportation services, construction, real estate, ownership, sales and development, and consulting services. That's a lot of work for a full time cop who would not retire from the force for another 13 years or so. The same day he founded Palos Enterprises, Palos Courier Services was also incorporated. Its founding documents show the officers were Gerry Mack, Jerry Mack's civil attorney, Glenn Sod, and Lewis himself. A person with direct knowledge told us that Jerry Mack established these two companies in Lewis name to qualify for tax benefits and other perks set aside for minority owned businesses. Whatever management Louis Palos did or did not contribute to these two enterprises. His ethnicity alone was a big plus. Lewis two businesses were located on two acres owned by the Watkins family, on the same property as Watkins Construction, just across the interstate from the home Shelley and Jerry Mack had shared. Here's one more wrinkle. About a year and a half after Lewis founded his enterprise on the 2 acre property owned by the Watkins family, Jerry Mack sold the same two acres for a surprisingly tidy $100,000 sum. The buyer was a trust fund named for Jerry McInshelly's daughters. As best we can tell, this is the same trust Jerry Mack was forced to establish when he settled the wrongful death lawsuit with his former in laws in chapter seven. You might remember when Shelley's sister Sandy explained why the trust was so important to her.

[Sandy (Shelly's sister)]

And I did set up a trust fund for the girls in case down the road they ever wanted to get the hell out.

[Carol Dawson]

If this is the same trust, and we believe it is, it shows how Jerry was able to extract the money he was legally bound to set aside for his own little girls.

[Wes Ferguson]

I'm recording. I hope that's okay.

[Sandy (Shelly's sister)]

Yeah, that's fine. That's fine. What's going on?

[Wes Ferguson]

So we've been digging into anything we could find about the trusts for the girls. Deeds and transaction records in the county clerk's office. I know you said you didn't want Ronnie, but did you ever hear who the trustee actually was?

[Sandy (Shelly's sister)]

I don't believe I did.

[Wes Ferguson]

So the trustees of the 1997 trust for the two daughters, these three guys, Johnny Ross, Gary Schlimmer and Lynn Shelton.

[Sandy (Shelly's sister)]

Oh, my God.

[Wes Ferguson]

Were all three top employees of Watkins Construction.

[Sandy (Shelly's sister)]

You are kidding me. I definitely did not know that.

[Wes Ferguson]

Yeah. Assuming this is the same trust, it has to be.

[Sandy (Shelly's sister)]

So I shot myself in the foot on that one, I guess.

[Carolyn (witness or interviewee)]

Right.

[Sandy (Shelly's sister)]

Wow.

[Wes Ferguson]

And after this trust was established in 97. And Jerry installed his three lieutenants as the trustees. He then sold two acres of his own construction company yard to the trust for $100,000.

[Sandy (Shelly's sister)]

Oh, my.

[Wes Ferguson]

So it seems like a way, like he was forced to pay this money, and this is a way for him to get that money back to this day. That two acre tract, which is really, if you look at Google Maps, it's like, you know, parked truck, some storage, you know, not much to it. Still valued at $100,000.

[Carolyn (witness or interviewee)]

Wow.

[Wes Ferguson]

So, like, over the past quarter century, it has not accrued any value.

[Sandy (Shelly's sister)]

Wow. So it's just sitting there.

[Wes Ferguson]

Yeah. It looks like there's a small building. It might be a storage building or something. Like, if you're driving past, no one would know that it's not owned by Watkins Construction.

[Sandy (Shelly's sister)]

Okay.

[Wes Ferguson]

But technically it is owned by the girls trust. It just seems like your idea to have this money, that is for the girls that they could use if they want to get away.

[Sandy (Shelly's sister)]

Absolutely. That's the whole basis of.

[Wes Ferguson]

Sounds like that has not worked at all.

[Sandy (Shelly's sister)]

And that's just legal to do that.

[Wes Ferguson]

Well, that's a question for someone else, but it. It certainly doesn't really seem to follow the spirit of. Of your settlement, as far as I understand it.

[Sandy (Shelly's sister)]

I shouldn't say I'm surprised, given everything else that's come about, but there's not any part of this whole thing since the day she was killed that has even been slightly legitimate. Every single thing has been a bad turn here, a bad turn there. All this power. And I'm just baffled by it. But obviously, you can certainly tell why I wasn't really able to play their game because I'm nowhere near that. And it would have been nice if the girls would have known that. That their Aunt Sandy was looking out for that, whether they wanted to believe anything that went with it. They knew I was doing my best for what I thought was right.

[Wes Ferguson]

Yeah. I don't think anybody doubts that you had the best of intentions and trying to make the best of a horrible, impossible situation.

[Sandy (Shelly's sister)]

Right, Right.

[Carol Dawson]

The three overseers of his daughter's trust were all top employees of Watkins Construction. They included the operations manager, Lynn Shelton, one of Jerry Mack's closest friends since high school, Johnny Ross, who later succeeded Shelton in management, and another loyal friend of Jerry Mack's named Gary Schlemmer. Much like Louis Palos, Gary Schlemmer was one of the prime people Henderson county investigators wanted to question regarding Shelly's murder. Also a lifelong bachelor like Lewis, he's been on the Watkins Payroll since his early 20s. At age 73 and no longer working at a job, he remains on the company payroll. These days, everybody in town knows where to find Gary.

[Wes Ferguson]

So I already knocked on Louis Palos's door and he didn't really tell me anything. What about Jerry Mack's other close friend, Gary Schlimmer? Carol has known of Gary since childhood, but I first saw his name on a list of state's witnesses in the file for Jerry Mack's criminal case back in 1993. Carol and I have tried hard to contact every witness on that list. Gary was one who never responded. Word on the street was I could find Gary at Napoli's, an Italian restaurant in downtown Corsicana. I was told to look for a short man with gray hair. He'd be dressed sharply in khaki pants, sitting every afternoon at the end of the bar. Inside the restaurant, supposedly, after he's had a few, he opens up about some of his theories of Shelly Watkins death. I show up a little after five o' clock on a Wednesday. The bar is in its own room, separate from the restaurant. It's dark, but I look around and I see those tell tale khakis. There are other guys sitting on either side of this gentleman. So I take my own seat at the bar, just a few stools down. I order a cold one. The bartender's friendly. I guess she can tell I'm not a local because she asks what brings me to Corsicana. I'm a writer. I'm here doing a story. It's about an unsolved murder.

[Carolyn (witness or interviewee)]

Really?

[Wes Ferguson]

Yeah.

[Sheriff Bodie Hillhouse]

Okay.

[Carolyn (witness or interviewee)]

The lock is murder. Yeah. Oh, I just recently learned about that.

[Wes Ferguson]

The bartender starts telling me what she's heard about Shelly's case. Her details are pretty off. For one thing, she mentions alligators in the river. You can't hear it on the tape, but all of a sudden a guy at the other end of the bar, not where the older gentleman is sitting to my left, but the opposite side to my right, butts in, he goes. You don't need to be talking about that. The bartender brushes off his warning.

[Carolyn (witness or interviewee)]

Baby, those are bar room stories that are completely untrue.

[Wes Ferguson]

Watch out, watch out, he says. By now I've already figured out the guy sitting to my left isn't Gary. I actually came in here looking for a guy in khakis, but not you. I was looking for Gary Schlemmer.

[Carolyn (witness or interviewee)]

Oh, my God.

[Wes Ferguson]

Everyone starts laughing. They tell me Gary is usually holed up at another bar in town, out at the golf course called the Moon Tower. At The Oaks before I leave. Napoli's the guy who's not. Gary tells me that he's very blessed to know Jerry Mack and that I should leave the past in the past. Instead, I head over to the moon tower. You can tell I'm nervous by how fast I'm talking and how weirdly enthusiastic my voice gets, like I'm trying to psych myself up. Walking into the moon tower at the Oaks on the golf course. Ugh. The door swings open. There he is. Gary. There's an open seat next to him, I take it. I think I would like just a Coors light draft, please. I smile and nod to Gary, but he's too busy looking over my shoulder at this big TV on the wall behind me. I glance back at the tv. It's Kelly Clarkson. This is starting off really weird. How's it going?

[Carolyn (witness or interviewee)]

Doing pretty good. I was watching up there saying, what are you thinking? Yeah, he wins 10,000 with Kelly Clarkson.

[Wes Ferguson]

If you couldn't understand that, don't worry. I'm laughing, but I have no idea what he's talking about either. I take a long sip of a very cold beer and consider my options. I either talk to Gary, or I throw down a five dollar bill and walk out the door. No one has to know.

[Carolyn (witness or interviewee)]

Hey, are you.

[Wes Ferguson]

Are you Gary?

[Carolyn (witness or interviewee)]

Yeah.

[Wes Ferguson]

Hey, Gary.

[Carolyn (witness or interviewee)]

I'm Wes Ferguson. I'm a writer. Oh, you're a what? A writer. Writer for what?

[Wes Ferguson]

Well, I used to be in newspapers and magazines, and now I mostly make documentary podcasts. No, sir.

[Carolyn (witness or interviewee)]

That's what you're trying to talk to me about.

[Wes Ferguson]

Yeah, I've heard that you have some interesting theories.

[Carolyn (witness or interviewee)]

I don't know anything about what you're.

[Wes Ferguson]

Trying to talk about Shelly Watkins.

[Carolyn (witness or interviewee)]

That's none of your business. What do you mean it's none of your business?

[Wes Ferguson]

That's none of your business, Gary says. I look up. The bartenders have all stopped pouring drinks. They're just standing there uncomfortably, watching us. The guys on the other side of Gary are all listening in, too. This might have been a mistake working with the writer from Corson Cannon named Carol Dawson. Yeah, she's writing a book about the case. I don't know a damn thing. Gary seems pretty agitated just from his body language. He's kind of rocking in his chair and fumbling around for his wallet. Do you know how Shelly ended up in the river.

[Carolyn (witness or interviewee)]

Sir? I don't have a clue.

[Wes Ferguson]

Gary pulls out a credit card and waves it at the nearest bartender. One of the other guys sitting at the bar, this big fella in A red T shirt comes to Gary's rescue. He offers to pick up Gary's tab. Gary gets out of there fast. Who can blame him? I'm ready to go, too.

[Carolyn (witness or interviewee)]

I think I'd just like to pay up.

[Wes Ferguson]

All right, y' all have a good night. Well, that's probably the last time I go to a bar in Corsicana, Texas. Gary seemed pretty rattled from the moment I introduced myself. He knew why I was there before I ever said the name Shelly Watkins. It's tempting to read into his reaction. What did he not want to say to me? But keep in mind, Jerry Mack is Gary's meal ticket. We've been told by more than one person that Gary still draws a paycheck from Watkins Construction despite not working there for years. I mean, who would want to jeopardize an arrangement like that? Way more important than talking to Gary. I've also been trying to figure out how to approach Jerry Mack. He lives behind a locked gate. He's rarely seen around town. He didn't respond to a letter I mailed or a voicemail I left. I wasn't sure where to go from here till Carol and I made contact with someone from the inner circle.

[Carolyn (witness or interviewee)]

Initially, I would have told you that Jerry was just a hard working, blue collar, kind of good old boy that was caught in a really unfortunate situation. The more that I was around him and the more we bonded and I became part of the family, he let his guard down. That's when I really saw Jerry Watkins for who he is. And I knew that that man was capable of anything. That is what made me start questioning Jerry.

[Wes Ferguson]

And what do you think now?

[Carol Dawson]

The answer. Next time on the Unforgotten.

[Carolyn (witness or interviewee)]

Foreign.

[Wes Ferguson]

Thank you for listening to the Unforgotten. Get updates, photos, case files and more when you sign up for our [e-mail] the Unforgotten is a free range production. Season one, the Labor Day Ghost is created, written and hosted by, by Carol Dawson and me, Wes Ferguson. I'm the executive producer here at Free Range Audio recording, editing and mixing by Austin Sisler at Eastside Studios in Austin, Texas. Scored by Austin Sisler and Jamie Cummins. Our theme song, ghost, is written and performed by Corsicana's own Will Mechatron Jones. If you support our efforts to shine a new light on Shelly Watkins Cold Case, please like subscribe give us a review and tell your friends thanks again and see you soon.