Gage pleads guilty to sex abuse charges
By Jim Cornelius

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Steven Gage pleaded guilty on Thursday, January 4, to 27 counts of sex abuse, criminal mistreatment and theft stemming from his operation of Royal Haven Equestrian Center for Girls, a home for "troubled" teens located east of Sisters.

According to District Attorney Mike Dugan, Gage pleaded guilty to at least one sexual abuse count for each victim listed in the indictment against him. All Measure 11 charges requiring mandatory sentences will be dismissed.

Gage was to go to trial on January 9. He was arrested on June 2, 2000.

Gage is to face sentencing on January 30-31 and his victims, who ranged in age from 14 to 18 at the time the sex abuse occurred, are expected to testify at the sentencing hearing.

The District Attorney said on Friday, January 5, that his office will request the maximum sentence for Gage. The 43-year-old Gage faces 45 years in prison. Since the Measure 11 charges were dismissed, the judge has wide discretion in handing down Gage's sentence.

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As part of the plea agreement, if and when he is released from prison Gage will be considered a "sexually dangerous offender" and required to undergo post-prison supervision for life.

As part of the agreement, charges against Gage's partner Karen Lee will be dismissed. Lee had faced multiple charges of criminal mistreatment.

District Attorney Dugan acknowledged that "(Gage's) attorney communicated to us that that was the deal maker."

Lee, who represented herself as Gage's wife during the operation of Royal Haven, actually married Gage in a jailhouse ceremony late last year.

Gage and Lee closed Royal Haven in December 1999, as authorities began investigating Gage on allegations of having sexual relations with some of the girls.

Ultimately 16 victims came forward during a year-long investigation involving the Oregon State Police and the Deschutes County District Attorney's office. A total of 121 counts were leveled against Gage as more and more victims came forward.

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When Royal Haven closed, 21 girls were sent back to their parents. Many of those parents had prepaid the $2,500 to $2,750 per month charged by Gage and Lee. One parent reportedly prepaid $15,000. In at least one case, a family sold their home to pay for their daughter's care in Sisters.

The program had been in operation under various names and in several locations in the Sisters and Bend area since 1993.

Gage often required payment by cashier's check, often made out to Karen Lee-Gage.

Gage pleaded guilty to an aggravated theft charge involving the handling of fees charged. District Attorney Dugan declined to comment on the disposition of what may amount to thousands of dollars paid by parents, saying he could not discuss the specific facts of the case prior to the sentencing.

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Dugan noted that homes for "wayward" children, such as Royal Haven are not required to be licensed and there are no disclosure rules for the facilities.

Dugan emphasized that not all such facilities and programs cause problems, but "when they go wrong, they go wrong big time."

The District Attorney is proposing legislation that would impose some regulation on facilities operated for the treatment of adolescent youth or children.

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