Gage faces 25 new charges

The charges against Steven Gage continue to pile up.

Two young women, who early in the investigation denied being abused by Gage, came forward in September to allege he had sexual relations with them when they were under his care at Royal Haven, a residential program for juvenile females.

Royal Haven operated in Sisters and Bend for about five years under the direction of Gage and his partner, Karen Lee.

The two "new" victims supported Gage long after his arrest, and even visited him several times per week after he was lodged in Deschutes County Jail in June.

As a result of information they provided to police, 25 new counts were filed against Gage on October 24, 2000.

This brings the total charges to 146, including 134 related to sexual abuse, rape, and sodomy.

Karen Lee faces multiple counts of criminal mistreatment for refusing to provide adequate medical care for the girls, and charges of money laundering.

Gage also faces charges of money laundering. According to court records, the two new victims told police that Gage and Lee "would use the girl's checking accounts to hide their money during 1999 and 2000."

This information was provided after police discovered large sums of money "going into and being taken out of the girls' accounts on a monthly basis," according to a memorandum filed by the prosecution.

Sources close to the investigation said the two victims would make deposits and write checks, some to Gage himself, under his direction. They did not personally benefit from the alleged money laundering scheme.

Earlier in the investigation, Gage told police he had not filed tax returns for several years. Police estimate that Royal Haven received as much as $400,000 per year when in operation. Parents were billed as much as $2,500 per month per child.

Tax evasion charges have not been filed, yet.

According to authorities, most if not all the money is gone and remains unaccounted for. Gage and Lee had a fondness for fast cars, motorcycles, and Arabian horses, according to those who knew them.

Gage often requested that parents pay him with a cashier's check, according to parents interviewed by The Nugget.

One of the girls who lived at Royal Haven told The Nugget that Gage often purchased money orders, and paid bills with money orders.

He also allegedly used credit card numbers from parents to purchase items from local vendors in Sisters.