Article:
On Thursday, one of the men involved in the Schoolcraft County triple homicide case was sentenced.

 Garry Cordell, 47, was sentenced to life in prison without parole. Cordell listened as the family of Jody Hutchinson, Carrie Nelson, and Heather Aldrich spoke at his sentencing asking for the maximum sentence.

 "How much compassion did you have when you murdered Carrie Heather and Jody?" asked Kim Morrison, aunt of Carrie and Heather. "My family has seen nothing of that in you and that's okay, your time will come. You have one more person to face and that is God."

 "You gave my son, my children's brother and my grandchildren's father no mercy, I beg the court to give you none," said Linda Cole, Jody's mother.

 Cordell pleaded guilty to two counts of murder in the first degree and one count of felony murder last week and was sentenced to life in prison without the possibility of parole. The bodies of Hutchinson, Nelson and Aldrich were discovered in a burned car in Doyle Township in April.

 The second suspect Kenneth Brunke pleaded guilty in October to obstruction of justice and lying to a police officer in exchange for his testimony against Cordell and the late Marietta Carlson who died of natural causes while in custody. Cordell spoke up saying he did what he had to do.

 "I didn't do this to hurt their family; no way ever will I ask for forgiveness," said Cordell. "I'm proud of who I am and what I did and what I stand for."

 The prosecuting attorney shared a video with photographs of the victims and the burned car lasting four minutes, which is how long research shows it takes to strangle someone like Cordell did three times.

 "I've never been an advocate of the death sentence, but in this particular instance I would probably find an exception if this were a different state," said Judge William Carmody.

 "We are happy today even though we have tears in our eyes that justice has been done with Mr. Cordell, and hopefully the same can happen to Mr. Brunke," said Kellie Roll, mother of Carrie and Heather.

 The second suspect Kenneth Brunke will be sentenced on December 10th in Schoolcraft County Circuit Court.

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 MANISTIQUE — The trees were just beginning to bud the night they dumped the bodies. The long, gravel road in the woods near the Hiawatha National Forest in Michigan's Upper Peninsula was muddy with an April thaw, causing deep ruts. The killers worried they were leaving tire tracks.

 The 2000 Oldsmobile Bravada was almost too small to handle its cargo — a dead man and dead woman in the back seat, another woman's body wedged behind that seat. Plus two 10-gallon cans of gasoline and a box of road flares.

 The explosion lit up the dark sky, the killers would later recall. But there was no one to see it except them.

 The early morning sun illuminates the historic water tower in Manistique in Michigan's Upper Peninsula, on Thursday, Oct. 22, 2015.

 (Photo: Kathleen Galligan/Detroit Free Press)

 The SUV and the bodies were still smoldering the next afternoon when a local family came upon it while out for a drive and called police.

 The victims, authorities were able to determine, were two local sisters and the older sister's boyfriend.

 Within days, three Manistique area residents were arrested and charged with murder.

 At the heart of the killings was a tale of drugs, sex and betrayal.

 The case seemed solid. Police had confessions from two of the suspects, who both named the third as the mastermind behind the killings

 But within months, the story of what happened that April night would take a dramatic turn, after one of the suspects died in jail, and a new confession emerged. And a young, inexperienced prosecutor would face allegations that he mishandled the case after he cut a plea deal with one of the remaining defendants, a move that outraged the victims' families.

 'Everybody is mad up here'

 Cast of Characters Defendants Kenneth Brunke, 46, was born and raised in LaGrange, Illinois, and moved to Manistique in 2011, where he worked for the Schoolcraft County Road Commission. He was divorced and the father of two. Investigators believe Brunke, known as "Spark" on the street was trafficking heavily in drugs in the region, supplying cocaine and morphine to street level dealers. In some statements, his co-defendants identified him as the mastermind behind the three murders, saying he was angry that one of the victims, Heather Aldrich, was spurning his affection, and had stolen drugs from him. The other two victims were killed, police say, because they provided Aldrich a lift to Brunke's house that day. Garry Cordell, 47, of Manistique, served ten years in prison after pleading guilty to a burglary charge, and was released in 2011. A self-proclaimed member of the Aryan Brotherhood, he has a dozen tattoos, including one of a human head on fire, and a melting face. He was living with his girlfriend, Marietta Carlson, a few houses down from Brunke at the time of the killings, and began selling drugs for Brunke shortly after they met, likely sometime in 2014, according to court records. Cordell initially said Brunke helped kill two of the victims in the basement, but months later, changed his story and said Brunke was not at home when the killings occurred, and that he, Cordell, angry that one of the victims had been stealing drugs, killed them with the help of Carlson. Marietta Carlson, 28, of Manistique, was born there and graduated from Manistique High School with good grades. She began using drugs in her late teens, and depended upon Cordell for her cocaine and morphine. Carlson told several different versions of what happened in the house, but admitted to holding down Aldrich while she was strangled. Carlson died of a heart ailment while in custody of the Schoolcraft County jail. Since her statements were not under oath, and she was not subject to cross examination, they could not be used against the co-defendants. Murder Victims Heather Aldrich, 25, of Germfask, had five children. A high school dropout, she had completed her GED. She had a long history of drug abuse. Two months before her murder, she was arrested in a drug and prostitution ring in Gould City. She had a prior drug arrest in 2011 in Newberry. Police say Brunke, angry that she had stolen drugs from him, and furious that she was spurning his affection and posting on Facebook that she was seeing another man, lured her to his house that day with promises of free morphine. Jody Hutchinson, 42, lived in nearby Gould City. A life time resident of the Upper Peninsula, he worked intermittently in construction and auto repair. He was married, and the father of five children, and had two grandchildren. He was separated from his wife, and living with Carrie Ann Nelson. Aldrich's sister. He was arrested for cocaine possession in 2009, and served 166 days in jail. He was discharged from parole in 2011. He and Nelson gave Aldrich a ride to Brunke's house that day, a favor that cost them their lives. Carrie Ann Nelson, 31, lived in Gould City. She had two children, and a drug arrest in 2011. Police believe she and Aldrich went into Brunke's house first, while Hutchinson waited outside in his vehicle. Hutchinson eventually went into the house to investigate. Cordell would later tell police he taped a plastic bag over Hutchinson’s face, then watched him suffocate. The Prosecutor Tim Noble, 39, was out of law school just a few months when he was appointed Schoolcraft County Prosecutor in 2011. He was unopposed, and elected to the seat that year. He has never tried a murder case, but says he relied on more experienced, fellow prosecutors in the state for advice on the triple homicide. Noble agreed to let Brunke plead to drastically reduced charges of lying to police and obstruction of justice in exchange for his testimony against Cordell, a plea deal that greatly angered the victim's families.

 The killings horrified residents in this remote, pristine community on the shores of Lake Michigan in the Upper Peninsula.

 Schoolcraft County, population 8,100, is known for its superb hunting and fishing, its blue lakes and long snow mobile trails. It's a place where people from big cities spend quiet summer vacations and families move for a simpler life. Its largest city is Manistique, a tiny town of 3,010, without a Walmart or a McDonald's. The nearest traffic light is more than 50 miles away.

 As details of the killings began to leak out, the initial shock turned into outrage. One of the victims was smothered with a plastic bag taped over his head, his hands tied behind his back, as his killer smoked cocaine and watched him die. The two sisters were shot up with drugs before being strangled, a kind of "last meal" for the condemned, the same killer would later brag.

 "I was shocked," said Michigan State Police Lt. Tim Sholander, one of the investigators.

 Sholander, who grew up in Schoolcraft County and heads a drug task force based in Marquette, has seen his fair share of crime, but nothing like this. While there has been a sharp increase in drug use in the tiny towns of the UP in recent years, he said, this was a new level of violence.

 "It shows the mind-set of the people involved."

 The police investigation, several hundred pages long, paints a picture of desperate lives — even among the splendor of a national forest and relative peace of a small, sleepy town -- of drug addicts living from one fix to the next, and dealers willing to kill if crossed. This report is based on those records, along with court documents and interviews.

 If the killings brought into focus the growing drug problem in this quiet community, it also put its young prosecutor on the hot seat and is now threatening his fledgling career.

 Timothy Noble, 39, is an affable man with an easy smile. A former Manistique City Council member, and the father of five, Noble was appointed as the Schoolcraft County prosecutor in 2011, just months out of law school, then elected unopposed to a four-year term.

 Schoolcraft County Prosecutor Timothy Noble listens to testimony during a court hearing on Monday, Oct. 19, 2015.

 (Photo: Kathleen Galligan/Detroit Free Press)

 A one-man office, Noble has never tried a murder case, and has declined to comment on the case, saying there are matters pending.. And he has declined to discuss his decision to allow one of the accused killers to plead to a much lesser crime -- amid growing criticism in a town where some think he was too green to tackle the most violent crime in the county's history.

 Noble could have sought help from the MIchigan Attorney General's Office, which sends in seasoned trial attorneys to help prosecute complicated or violent crimes in rural counties with limited resources.

 "We routinely provide advice and assistance to local prosecutors whenever they request such help," said Andrea Bitely, communications director for Attorney General Bill Schuette, in an email to the Free Press. "We very frequently take over difficult and complex cases whenever the local prosecutor asks for our assistance. We are also glad to partner with the local prosecutor on complex and difficult cases when they ask. We have several veteran prosecutors who have a great deal of experience on difficult homicide, sexual assault and other specialized cases."

 "To the best of our knowledge, there was no formal request for assistance from Schoolcraft County..." she said.

 Noble's decision to handle the case on his own infuriated the victims' families.

 "He doesn't know what he's doing," said Rob Hutchinson, brother of the man smothered with the plastic bag. "Everybody is real mad up here."

 CLOSE Mantique area residents in Michigan’s UP are shocked by the murders of three local residents, Jody Hutchinson, 42, Carrie Nelson, 31 ,and Heather Aldrich, 25. Victim’s family members continue to seek justice. Kathleen Galligan Detroit Free Press

 A quiet but menacing man

 Kenneth Brunke was a loner, divorced, with a history of depression and suicide threats, when he moved to Manistique from Illinois sometime in 2011. The 46-year-old lived alone in a large, rambling tri-level home on rural Kendall Road and worked as a seasonal employee for the Schoolcraft Road Commission.

 Kenneth Brunke, 46, appears in court on Monday, Oct. 19, 2015.

 (Photo: Kathleen Galligan/Detroit Free Press)

 His real money, police say, came from drug sales, with Brunke operating a narcotics ring that supplied local residents with cocaine and morphine. He was a quiet but menacing man, witnesses would later tell police, a man who kept an arsenal of guns, and made it known that he would not be crossed.

 "I know what kind of guy this is, I know he's got a lot of guns in his house," one witness told police in the days after the killing as they began to focus their investigation on him. "When you go over there, you should make sure your bases are covered."

 Sometime in early spring, Brunke heard about a young woman in nearby Germfask Township. Heather Aldrich, 25, was vivacious and pretty, a woman who had not lost her looks, despite 10 years of drug addiction. While she had used heroin, marijuana and alcohol, her drug of choice that March and April were morphine and cocaine. Brunke had plenty of that on hand. He put out the word he'd like to meet her.

 There had been stretches when Aldrich thought she was going to make it. Hooked on drugs in her early teens in rural Newberry by a boyfriend who introduced her to the needle, she dropped out of school and began to have babies, five in all.

 But along the way, she got her GED and, for a while, held a job at a local casino. She signed up for online university courses.

 Her Facebook page shows a yearning for a life without drugs, big plans to move downstate, a young woman, excited on a Saturday night to be dressed up and going out on the town. She hoped someday to see her children again, all whom were adopted out to other families.

 Kellie Roll of Germfask holds family photos of her daughters Carrie Nelson, 31, and Heather Aldrich, 25, who were murdered in mid April, along with Nelson's boyfriend Jody Hutchinson, 42.

 (Photo: Kathleen Galligan/Detroit Free Press)

 But she always came back to the needle.

 "She would come home to me, sometimes, mostly to rest," said her mother Kellie Roll, 51, at her small home in Germfask Township. "I would fix her something to eat, and she'd stay awhile, but then she'd be gone," Roll said. "Look, my daughter was an addict. It was a sickness."

 Brunke's neighbor, and the man selling Brunke's drugs on the street for him, Garry Cordell, a 46-year-old ex-con and addict himself, knew Aldrich and introduced her to Brunke.

 Brunke, socially awkward, was immediately smitten by the woman with the long hair. And Aldrich, who sometimes slept in her car, or at a cheap motel where she traded sex for money, suddenly found herself with a free supply of drugs and a place to stay.

 The relationship was strained from the beginning, with Brunke anxious for it to develop into something "romantic." But Aldrich would disappear for days at a time, only to return for more drugs. Brunke was growing frustrated.

 And there was growing tension from another source.

 Cordell, who was at Brunke's house almost daily, would later tell police he was not happy that Brunke, whom he referred to as "my dude," had fallen for Aldrich and was keeping her supplied with free drugs.

 “He saw that on Facebook, and he was f-----g madder than f---.” Gary Cordell talking about Kenneth Brunke

 "I encouraged him not to have Heather at his house, to only treat her the way she wants to be treated, but he never took my advice and let her come to his house and they began to see each other on a regular basis," Cordell would later say.

 Brunke grew even more upset when Cordell pointed out a new Facebook posting by Aldrich, announcing she was involved with another man.

 "He saw that on Facebook, and he was f-----g madder than f---," Cordell would later tell police.

 The jealousy grew. Aldrich would later tell a friend that one day in early April she came home and found Brunke with a handgun to his head. He then pointed it at her and she left the room.

 But she stayed for the drugs.

 On April 14, Brunke had given her a large quantity of cocaine, and she drove out to River Road, a rural county gravel lane surrounded by forest, with a male friend to share it. As they sat shooting up, Brunke happened by in Schoolcraft Road Commission truck and glared at them. Aldrich's friend would later tell police he was certain Brunke had seen what they had been doing.

 The next day Aldrich, stopped by Brunke's house while he was at work for the road commission, and discovered he had hidden a large stash of cocaine in a PVC pipe buried in his backyard. The pipe was barely concealed beneath pine needles and Aldrich spotted it immediately. She drove back out to the spot on River Road with two friends, and shot up the drugs.

 Within hours, Brunke was texting her with a tantalizing message - there is free morphine on my computer desk, come by and get it. "It sounds like he was baiting her to be honest with you," said one of her friends with her when the text came through..

 Aldrich, panicked about stealing the drugs, and coming down from her high, hid her car at a nearby casino, worried Brunke was looking for her. And she called her sister, Carrie Nelson, 31, and Nelson's boyfriend, Jody Hutchinson, 42, and they all eventually met up in Germfask, at Aldrich's mother's house.

 Above: Heather Aldrich, 25; Carrie Nelson, 31, and Jody Hutchinson, 42

 "She told me she'd taken the drugs, and I said, 'Give them back,'" Kellie Roll recalled her conversation with her youngest daughter."But she was scared."

 On April 16, she woke that morning and found that the temptation of free morphine was too great.

 Before she hitched a ride with her sister Nelson and Nelson's boyfriend Hutchinson to Brunke's house for the free drugs, Aldrich posted on her Facebook Page a song about the struggles of addiction.

 "The needle in my arm,

 The thoughts in my head,

 What's the matter anyway,

 By morning I'll be dead."

 It would prove an eerie premonition.

 A gruesome discovery

 The burned Bravada containing the bodies of tripple homicide victims Heather Aldrich, Carrie Nelson and Jodi Hutchinson lies in the traffic lane of River Road just outside Manistique in mid April 2015.

 (Photo: Michigan State Police)

 The next day -- April 17 -- in the late afternoon, a Manistique couple and their two sons, 8 and 14, were driving on River Road near where Aldrich and her friends had been shooting up the stolen cocaine a few days before and saw an SUV stopped in the middle of the muddy icy road. As they got closer, they could see that it had been burned. One small wisp of smoke rose through the air.

 The four piled out to investigate, peered into the windows and saw what appeared to be two smoldering bodies in the back seat. They fled back to their car and the shaken father dialed 911.

 Police arrived and were able to determine there were three bodies in the Oldsmobile Bravado, two in the back seat and one in the cargo area.

 The fire had been so fierce it melted the tires off the vehicle. The blackened bodies were still warm and smoking.

 The victims were identified as Aldrich, her sister Nelson, and Nelson's boyfriend, Hutchinson. Because of the condition of the bodies, the medical examiner could not determine the cause of death.

 Within days of the bodies being discovered, a witness told police she had been with Garry Cordell, Brunke's drug salesman and neighbor, when he threw items belonging to the victims in the Manistique River.

 Cordell and his live-in girlfriend, Marietta Carlson, 27, also an addict, were arrested a few days later and both gave detailed confessions, admitting to the killings and implicating Brunke, saying he helped strangle and smother the victims in his own home.

 The motive - to punish Aldrich for the theft of the cocaine.

 Nelson and Hutchinson had been killed because they'd given Aldrich a ride to Brunke's house and were witnesses.

 A few days later, Brunke was arrested in Illinois where he had fled after the killings. While he was in Illinois, investigators said, Brunke replaced the four tires on his car, worried police might match the tires to the ruts found near the smoking SUV.

 Conflicting stories

 In the beginning, the three defendants told shifting stories of what happened that night. But all agreed that Brunke had lured Aldrich to his house with the promise of free drugs.

 Garry Cordell, 47, during a court appearance on Monday, Oct. 19, 2015.

 (Photo: Kathleen Galligan/Detroit Free Press)

 Carlson insisted at first that Brunke had strangled Aldrich in his bedroom, while she held Aldrich's legs to keep her from kicking and flailing. She later said it was Cordell, who strangled Aldrich, under orders from Brunke, who couldn't do it himself but wanted her dead because of the theft of the drugs and her Facebook posting about another man. Meanwhile, Brunke, she said, was killing the other two victims, who were tied up in the basement.

 Cordell, in a lengthy interview shortly after his arrest, told police that Brunke admitted killing Nelson in the basement, strangling her as she was tied to a pole. Cordell said he was upstairs at the time, but that Brunke provided specific details of his own murderous activity in the basement. "He said it took less than two minutes," to kill Carrie Nelson, Cordell told police.

 Brunke, in custody, was interviewed only once by police before he hired an attorney. He admitted that he had been angry that Aldrich, with whom he had been having a relationship, was seeing another man.

 "I was upset," he told investigators, "I didn't sleep that night. Someone that I cared about, you know, basically stabbing me."

 All three suspects were charged with first-degree murder, conspiracy to murder, and kidnapping since the victims had been held against their will in Brunke's home.But he denied that anybody had been harmed in his house, and insisted that he had nothing to do with the killings. "All I know is when those people left my house, they were vertical, they were fine."

 Grieving family members braced for a trial. There were plenty. Carrie Nelson had two young sons. Heather, in addition to her five children, had a mother, step father, and brother, Zach. Jody Hutchinson had 5 children, two grandchildren, a mother and four siblings. They were all confident that the numerous statements made by the defendants would ensure convictions.

 They would be deeply disappointed.

 A jailhouse death and new confession

 Marietta Carlson had been in the Schoolcraft County jail for 47 days, awaiting trial on three counts in the murders of Heather Aldrich, Carrie Nelson and Jody Hutchinson, when she woke up June 16, and complained of stomach pain. After a jail nurse examined her, she was taken to Schoolcraft Memorial Hospital.

 Marietta Carlson's booking photo.

 (Photo: Schoolcraft Sheriff's Dept.)

 Doctors initially thought she had gallbladder problems, but as her condition deteriorated, they prepared to send her by helicopter to a hospital in Marquette. She never got on the helicopter and died early the next day. An autopsy found that she had an inflamed heart, possibly because of 10 years of drug abuse.

 Her statements to police about what happened in Brunke's house the night of April 16 had been crucial to the prosecutor's case. But they were inadmissible in court, since they were not under oath, and she could not be cross examined.

 So now the prosecutor was down to two defendants, but with enough evidence to proceed to trial.

 The two men were being held in separate jails, Cordell in Schoolcraft County Jail, and Brunke in Chippewa County jail. Both men began to explore insanity defenses and after their attorneys filed motions, were ordered to undergo psychological exams at the state's Forensic Center. Both ended up there on the same day Sept. 11. It's unclear from records whether their paths crossed while at the center.

 “Jody was the first person to die. I placed a bag over his head and duct taped it around his neck at which time he told me he couldn’t breathe, and I said, ‘no kidding, dummy.’” Garry Cordell's statement to police

 But three weeks later, Cordell, to the astonishment of investigators, suddenly changed his story. In what was to be his fifth confession to police, he now said Brunke was not in the house at the time of the killings, and that he and Carlson had committed the murders.

 He said the two women arrived at the house, looking for morphine, and that he forced the two women into the basement at gunpoint as Hutchinson waited outside in the car. He tied the women up, then invited Hutchinson in. In the basement, Hutchinson pulled a small knife and Cordell disarmed him, then tied him up.

 A small memorial stands in front of Kenneth Brunke's home outside of Manistique where police say the three victims were strangled and suffocated.

 (Photo: Kathleen Galligan/Detroit Free Press)

 "Jody was the first person to die," Cordell said in his written statement, dated Sept. 29. "I placed a bag over his head and duct taped it around his neck at which time he told me he couldn't breathe, and I said, 'no kidding, dummy.' "

 He then strangled Nelson, he said. Carlson choked Aldrich to death.

 Brunke arrived home from work a short time later, Cordell said. "Once talking to me and finding out that I killed all three of them and that we need to get rid of them, he is really mad at me…" Cordell said in his statement.

 His reason for the triple homicide? His dismay at Alrldich's theft of the drugs from his friend Brunke, and his suspicion that all three victims were working with undercover drug enforcement officers, a claim law enforcement dismissed as ludicrous.

 Cordell continued. The three loaded up the bodies into Hutchinson's SUV, then Brunke drove it into the forest, with Carlson and Cordell following in Brunke's car. Once far enough off the main roads, they stopped and doused the SUV with gasoline. Brunke, Cordell said, threw a flare into the car "and it exploded into flames."

 'One man shall die so that the other may live'

 Autumn Arseneau, 18, Zak Roll, 18, and his mother Kellie Roll, 51, of Germfask, listen to testimony about the murders of Arseneau's uncle Jody Hutchinson, 42, and Roll's daughters Carrie Nelson, 31, and Heather Aldrich, 25, during an Oct. 19 court hearing.

 (Photo: Kathleen Galligan/Detroit Free Press)

 The prosecutor, who has declined to discuss the case with the Free Press, called all the victims' family members together in early October to say he didn't think he could make the murder charges stick against Brunke without Marietta Carlson's statements and in light of Cordell's new confession. The murder charges against Brunke were being dropped and he was going to be allowed to plead to obstruction of justice and lying to a police officer, convictions that could have him out of prison in five years or less. In exchange, he was going to testify against Cordell.

 "We were all crying," Kellie Roll recalled about the meeting in September. "There was all that evidence. It just didn't make sense."

 Some people, including the victims' families, believe Cordell took the fall for Brunke in exchange for cash, or a promise by Brunke to take care of Cordell's elderly mother once Brunke is released from prison in a few years.

 Indeed, there is some evidence money Brunke, or someone acting on his behalf, got money to Cordell after Cordell's last confession, exonerating Brunke.

 On Oct. 19, moments before Brunke was brought into court to testify against Cordell at Cordell's preliminary exam, the prosecutor heard from a source that Brunke owed Cordell $6,500. When Brunke took the stand Noble asked him about it. Brunke seemed caught off guard by the question, then admitted he owed Cordell the money, but was vague about why, saying Cordell had done chores around his house, including landscaping.It was a peculiar answer, since Brunke's rural home sits on a large lot, unkempt with no sign of landscaping at all. Reporters from the Free Press walked the 3-acre lot in October.

 It was also odd because multiple witnesses in the investigation told police that Cordell, unemployed and indigent, often owed money to Brunke, an employed homeowner, and not the other way around.

 The debt had been paid by the time Cordell was back in court three weeks later to officially plead guilty to the three murders. When the prosecutor in court asked whether Brunke still owed him money, Cordell said "not anymore."

 The prosecutor continued. "What did Mr. Brunke owe you money for?"

 Cordell responded, "I don't think that's any of your business."

 And then he added, with a slight grin, "One man shall die so that the other may live."

 Unresolved questions

 Brunke will be in court Jan. 21 when he will be sentenced to prison on the lesser felonies.

 According to his October testimony, he arrived home that day to find Cordell and Carlson in his home with the three dead bodies. He said he was in fear of his life, and helped dispose of the bodies in the woods. When asked by the prosecutor why he lied to police, he said, "Because I thought I could get away with something at that point."

 “How is that they can say this guy wasn't involved? There's something going on here. We're not getting the whole picture.” Ken, a Manistique resident

 The prosecutor then asked, "Did you think you had done something criminal at that point?" And Brunke said "I didn't know but I wanted nothing to do with what happened."

 Once facing life in prison, he will likely do less than five years, under sentencing guidelines.

 The community was both mesmerized and suspicious about how the case unfolded.

 "It's torn this town apart," said Ken, who was drinking at Marley's, a tavern in downtown Manistique, with his friend Dan, and discussing the murders one night in October.

 They asked that their last names not be used, worried about antagonizing the prosecutor in this small town, where everybody knows everybody, but also leery of angering any friends Brunke and Cordell might still have in the drug community.

 The killings have been the topic du jour at this longtime bar and grill, known for the homemade buns on the hamburgers. The consensus, said Ken, is that Brunke got the deal of a lifetime.

 A makeshift memorial stands in honor of Jody Hutchinson, 42, and sisters Carrie Nelson, 31, and Heather Aldrich, 25, at the side on River Road in Doyle Township where their bodies were burned in an SUV..

 (Photo: Kathleen Galligan/Detroit Free Press)

 "How is that they can say this guy wasn't involved? There's something going on here," he said. "We're not getting the whole picture."

 Out on River Road, where the bodies were burned, the trees are now bare in the late autumn light. It's been eight months since the killings. There is still a faint stain of soot on the road, now almost washed away by rain.

 Not long after the killings, the victims' families and friends put up a makeshift memorial at the site, with small crosses and stuffed animals, and balloons, now-deflated. The crosses read, "mother," "sister," "daughter," "dad."

 But within days of Cordell's sentencing in November, someone smashed the little shrine, breaking the crosses and destroying the mementos.

 "It was where we could all go to remember them," said Kellie Roll. "And now that's gone too."

 And they are still faced with one haunting question:

 Did someone get away with murder that day? ||||| Share This Story Tweet Share Share Pin Email

 MANISTIQUE — The trees were just beginning to bud the night they dumped the bodies. The long, gravel road in the woods near the Hiawatha National Forest in Michigan's Upper Peninsula was muddy with an April thaw, causing deep ruts. The killers worried they were leaving tire tracks.

 The 2000 Oldsmobile Bravada was almost too small to handle its cargo — a dead man and dead woman in the back seat, another woman's body wedged behind that seat. Plus two 10-gallon cans of gasoline and a box of road flares.

 The explosion lit up the dark sky, the killers would later recall. But there was no one to see it except them.

 (Photo: Kathleen Galligan/Detroit Free Press)

 The SUV and the bodies were still smoldering the next afternoon when a local family came upon it while out for a drive and called police.

 The victims, authorities were able to determine, were two local sisters and the older sister's boyfriend.

 Within days, three Manistique area residents were arrested and charged with murder.

 At the heart of the killings was a tale of drugs, sex and betrayal.

 The case seemed solid. Police had confessions from two of the suspects, who both named the third as the mastermind behind the killings

 But within months, the story of what happened that April night would take a dramatic turn, after one of the suspects died in jail, and a new confession emerged. And a young, inexperienced prosecutor would face allegations that he mishandled the case after he cut a plea deal with one of the remaining defendants, a move that outraged the victims' families.

 'Everybody is mad up here'

 Cast of Characters Defendants Kenneth Brunke, 46, was born and raised in LaGrange, Illinois, and moved to Manistique in 2011, where he worked for the Schoolcraft County Road Commission. He was divorced and the father of two. Investigators believe Brunke, known as "Spark" on the street was trafficking heavily in drugs in the region, supplying cocaine and morphine to street level dealers. In some statements, his co-defendants identified him as the mastermind behind the three murders, saying he was angry that one of the victims, Heather Aldrich, was spurning his affection, and had stolen drugs from him. The other two victims were killed, police say, because they provided Aldrich a lift to Brunke's house that day. Garry Cordell, 47, of Manistique, served ten years in prison after pleading guilty to a burglary charge, and was released in 2011. A self-proclaimed member of the Aryan Brotherhood, he has a dozen tattoos, including one of a human head on fire, and a melting face. He was living with his girlfriend, Marietta Carlson, a few houses down from Brunke at the time of the killings, and began selling drugs for Brunke shortly after they met, likely sometime in 2014, according to court records. Cordell initially said Brunke helped kill two of the victims in the basement, but months later, changed his story and said Brunke was not at home when the killings occurred, and that he, Cordell, angry that one of the victims had been stealing drugs, killed them with the help of Carlson. Marietta Carlson, 28, of Manistique, was born there and graduated from Manistique High School with good grades. She began using drugs in her late teens, and depended upon Cordell for her cocaine and morphine. Carlson told several different versions of what happened in the house, but admitted to holding down Aldrich while she was strangled. Carlson died of a heart ailment while in custody of the Schoolcraft County jail. Since her statements were not under oath, and she was not subject to cross examination, they could not be used against the co-defendants. Murder Victims Heather Aldrich, 25, of Germfask, had five children. A high school dropout, she had completed her GED. She had a long history of drug abuse. Two months before her murder, she was arrested in a drug and prostitution ring in Gould City. She had a prior drug arrest in 2011 in Newberry. Police say Brunke, angry that she had stolen drugs from him, and furious that she was spurning his affection and posting on Facebook that she was seeing another man, lured her to his house that day with promises of free morphine. Jody Hutchinson, 42, lived in nearby Gould City. A life time resident of the Upper Peninsula, he worked intermittently in construction and auto repair. He was married, and the father of five children, and had two grandchildren. He was separated from his wife, and living with Carrie Ann Nelson. Aldrich's sister. He was arrested for cocaine possession in 2009, and served 166 days in jail. He was discharged from parole in 2011. He and Nelson gave Aldrich a ride to Brunke's house that day, a favor that cost them their lives. Carrie Ann Nelson, 31, lived in Gould City. She had two children, and a drug arrest in 2011. Police believe she and Aldrich went into Brunke's house first, while Hutchinson waited outside in his vehicle. Hutchinson eventually went into the house to investigate. Cordell would later tell police he taped a plastic bag over Hutchinson’s face, then watched him suffocate. The Prosecutor Tim Noble, 39, was out of law school just a few months when he was appointed Schoolcraft County Prosecutor in 2011. He was unopposed, and elected to the seat that year. He has never tried a murder case, but says he relied on more experienced, fellow prosecutors in the state for advice on the triple homicide. Noble agreed to let Brunke plead to drastically reduced charges of lying to police and obstruction of justice in exchange for his testimony against Cordell, a plea deal that greatly angered the victim's families.

 The killings horrified residents in this remote, pristine community on the shores of Lake Michigan in the Upper Peninsula.

 Schoolcraft County, population 8,100, is known for its superb hunting and fishing, its blue lakes and long snow mobile trails. It's a place where people from big cities spend quiet summer vacations and families move for a simpler life. Its largest city is Manistique, a tiny town of 3,010, without a Walmart or a McDonald's. The nearest traffic light is more than 50 miles away.

 As details of the killings began to leak out, the initial shock turned into outrage. One of the victims was smothered with a plastic bag taped over his head, his hands tied behind his back, as his killer smoked cocaine and watched him die. The two sisters were shot up with drugs before being strangled, a kind of "last meal" for the condemned, the same killer would later brag.

 "I was shocked," said Michigan State Police Lt. Tim Sholander, one of the investigators.

 Sholander, who grew up in Schoolcraft County and heads a drug task force based in Marquette, has seen his fair share of crime, but nothing like this. While there has been a sharp increase in drug use in the tiny towns of the UP in recent years, he said, this was a new level of violence.

 "It shows the mind-set of the people involved."

 The police investigation, several hundred pages long, paints a picture of desperate lives — even among the splendor of a national forest and relative peace of a small, sleepy town -- of drug addicts living from one fix to the next, and dealers willing to kill if crossed. This report is based on those records, along with court documents and interviews.

 If the killings brought into focus the growing drug problem in this quiet community, it also put its young prosecutor on the hot seat and is now threatening his fledgling career.

 Timothy Noble, 39, is an affable man with an easy smile. A former Manistique City Council member, and the father of five, Noble was appointed as the Schoolcraft County prosecutor in 2011, just months out of law school, then elected unopposed to a four-year term.

 (Photo: Kathleen Galligan/Detroit Free Press)

 A one-man office, Noble has never tried a murder case, and has declined to comment on the case, saying there are matters pending.. And he has declined to discuss his decision to allow one of the accused killers to plead to a much lesser crime -- amid growing criticism in a town where some think he was too green to tackle the most violent crime in the county's history.

 Noble could have sought help from the MIchigan Attorney General's Office, which sends in seasoned trial attorneys to help prosecute complicated or violent crimes in rural counties with limited resources.

 "We routinely provide advice and assistance to local prosecutors whenever they request such help," said Andrea Bitely, communications director for Attorney General Bill Schuette, in an email to the Free Press. "We very frequently take over difficult and complex cases whenever the local prosecutor asks for our assistance. We are also glad to partner with the local prosecutor on complex and difficult cases when they ask. We have several veteran prosecutors who have a great deal of experience on difficult homicide, sexual assault and other specialized cases."

 "To the best of our knowledge, there was no formal request for assistance from Schoolcraft County..." she said.

 Noble's decision to handle the case on his own infuriated the victims' families.

 "He doesn't know what he's doing," said Rob Hutchinson, brother of the man smothered with the plastic bag. "Everybody is real mad up here."

 Skip in Skip x Embed x Share CLOSE Mantique area residents in Michigan’s UP are shocked by the murders of three local residents, Jody Hutchinson, 42, Carrie Nelson, 31 ,and Heather Aldrich, 25. Victim’s family members continue to seek justice. Kathleen Galligan Detroit Free Press

 A quiet but menacing man

 Kenneth Brunke was a loner, divorced, with a history of depression and suicide threats, when he moved to Manistique from Illinois sometime in 2011. The 46-year-old lived alone in a large, rambling tri-level home on rural Kendall Road and worked as a seasonal employee for the Schoolcraft Road Commission.

 (Photo: Kathleen Galligan/Detroit Free Press)

 His real money, police say, came from drug sales, with Brunke operating a narcotics ring that supplied local residents with cocaine and morphine. He was a quiet but menacing man, witnesses would later tell police, a man who kept an arsenal of guns, and made it known that he would not be crossed.

 "I know what kind of guy this is, I know he's got a lot of guns in his house," one witness told police in the days after the killing as they began to focus their investigation on him. "When you go over there, you should make sure your bases are covered."

 Sometime in early spring, Brunke heard about a young woman in nearby Germfask Township. Heather Aldrich, 25, was vivacious and pretty, a woman who had not lost her looks, despite 10 years of drug addiction. While she had used heroin, marijuana and alcohol, her drug of choice that March and April were morphine and cocaine. Brunke had plenty of that on hand. He put out the word he'd like to meet her.

 There had been stretches when Aldrich thought she was going to make it. Hooked on drugs in her early teens in rural Newberry by a boyfriend who introduced her to the needle, she dropped out of school and began to have babies, five in all.

 But along the way, she got her GED and, for a while, held a job at a local casino. She signed up for online university courses.

 Her Facebook page shows a yearning for a life without drugs, big plans to move downstate, a young woman, excited on a Saturday night to be dressed up and going out on the town. She hoped someday to see her children again, all whom were adopted out to other families.

 (Photo: Kathleen Galligan/Detroit Free Press)

 But she always came back to the needle.

 "She would come home to me, sometimes, mostly to rest," said her mother Kellie Roll, 51, at her small home in Germfask Township. "I would fix her something to eat, and she'd stay awhile, but then she'd be gone," Roll said. "Look, my daughter was an addict. It was a sickness."

 Brunke's neighbor, and the man selling Brunke's drugs on the street for him, Garry Cordell, a 46-year-old ex-con and addict himself, knew Aldrich and introduced her to Brunke.

 Brunke, socially awkward, was immediately smitten by the woman with the long hair. And Aldrich, who sometimes slept in her car, or at a cheap motel where she traded sex for money, suddenly found herself with a free supply of drugs and a place to stay.

 The relationship was strained from the beginning, with Brunke anxious for it to develop into something "romantic." But Aldrich would disappear for days at a time, only to return for more drugs. Brunke was growing frustrated.

 And there was growing tension from another source.

 Cordell, who was at Brunke's house almost daily, would later tell police he was not happy that Brunke, whom he referred to as "my dude," had fallen for Aldrich and was keeping her supplied with free drugs.

 “He saw that on Facebook, and he was f-----g madder than f---.” Gary Cordell talking about Kenneth Brunke

 "I encouraged him not to have Heather at his house, to only treat her the way she wants to be treated, but he never took my advice and let her come to his house and they began to see each other on a regular basis," Cordell would later say.

 Brunke grew even more upset when Cordell pointed out a new Facebook posting by Aldrich, announcing she was involved with another man.

 "He saw that on Facebook, and he was f-----g madder than f---," Cordell would later tell police.

 The jealousy grew. Aldrich would later tell a friend that one day in early April she came home and found Brunke with a handgun to his head. He then pointed it at her and she left the room.

 But she stayed for the drugs.

 On April 14, Brunke had given her a large quantity of cocaine, and she drove out to River Road, a rural county gravel lane surrounded by forest, with a male friend to share it. As they sat shooting up, Brunke happened by in Schoolcraft Road Commission truck and glared at them. Aldrich's friend would later tell police he was certain Brunke had seen what they had been doing.

 The next day Aldrich, stopped by Brunke's house while he was at work for the road commission, and discovered he had hidden a large stash of cocaine in a PVC pipe buried in his backyard. The pipe was barely concealed beneath pine needles and Aldrich spotted it immediately. She drove back out to the spot on River Road with two friends, and shot up the drugs.

 Within hours, Brunke was texting her with a tantalizing message - there is free morphine on my computer desk, come by and get it. "It sounds like he was baiting her to be honest with you," said one of her friends with her when the text came through..

 Aldrich, panicked about stealing the drugs, and coming down from her high, hid her car at a nearby casino, worried Brunke was looking for her. And she called her sister, Carrie Nelson, 31, and Nelson's boyfriend, Jody Hutchinson, 42, and they all eventually met up in Germfask, at Aldrich's mother's house.

 Above: Heather Aldrich, 25; Carrie Nelson, 31, and Jody Hutchinson, 42

 "She told me she'd taken the drugs, and I said, 'Give them back,'" Kellie Roll recalled her conversation with her youngest daughter."But she was scared."

 On April 16, she woke that morning and found that the temptation of free morphine was too great.

 Before she hitched a ride with her sister Nelson and Nelson's boyfriend Hutchinson to Brunke's house for the free drugs, Aldrich posted on her Facebook Page a song about the struggles of addiction.

 "The needle in my arm,

 The thoughts in my head,

 What's the matter anyway,

 By morning I'll be dead."

 It would prove an eerie premonition.

 A gruesome discovery

 (Photo: Michigan State Police)

 The next day -- April 17 -- in the late afternoon, a Manistique couple and their two sons, 8 and 14, were driving on River Road near where Aldrich and her friends had been shooting up the stolen cocaine a few days before and saw an SUV stopped in the middle of the muddy icy road. As they got closer, they could see that it had been burned. One small wisp of smoke rose through the air.

 The four piled out to investigate, peered into the windows and saw what appeared to be two smoldering bodies in the back seat. They fled back to their car and the shaken father dialed 911.

 Police arrived and were able to determine there were three bodies in the Oldsmobile Bravado, two in the back seat and one in the cargo area.

 The fire had been so fierce it melted the tires off the vehicle. The blackened bodies were still warm and smoking.

 The victims were identified as Aldrich, her sister Nelson, and Nelson's boyfriend, Hutchinson. Because of the condition of the bodies, the medical examiner could not determine the cause of death.

 Within days of the bodies being discovered, a witness told police she had been with Garry Cordell, Brunke's drug salesman and neighbor, when he threw items belonging to the victims in the Manistique River.

 Cordell and his live-in girlfriend, Marietta Carlson, 27, also an addict, were arrested a few days later and both gave detailed confessions, admitting to the killings and implicating Brunke, saying he helped strangle and smother the victims in his own home.

 The motive - to punish Aldrich for the theft of the cocaine.

 Nelson and Hutchinson had been killed because they'd given Aldrich a ride to Brunke's house and were witnesses.

 A few days later, Brunke was arrested in Illinois where he had fled after the killings. While he was in Illinois, investigators said, Brunke replaced the four tires on his car, worried police might match the tires to the ruts found near the smoking SUV.

 Conflicting stories

 In the beginning, the three defendants told shifting stories of what happened that night. But all agreed that Brunke had lured Aldrich to his house with the promise of free drugs.

 (Photo: Kathleen Galligan/Detroit Free Press)

 Carlson insisted at first that Brunke had strangled Aldrich in his bedroom, while she held Aldrich's legs to keep her from kicking and flailing. She later said it was Cordell, who strangled Aldrich, under orders from Brunke, who couldn't do it himself but wanted her dead because of the theft of the drugs and her Facebook posting about another man. Meanwhile, Brunke, she said, was killing the other two victims, who were tied up in the basement.

 Cordell, in a lengthy interview shortly after his arrest, told police that Brunke admitted killing Nelson in the basement, strangling her as she was tied to a pole. Cordell said he was upstairs at the time, but that Brunke provided specific details of his own murderous activity in the basement. "He said it took less than two minutes," to kill Carrie Nelson, Cordell told police.

 Brunke, in custody, was interviewed only once by police before he hired an attorney. He admitted that he had been angry that Aldrich, with whom he had been having a relationship, was seeing another man.

 "I was upset," he told investigators, "I didn't sleep that night. Someone that I cared about, you know, basically stabbing me."

 All three suspects were charged with first-degree murder, conspiracy to murder, and kidnapping since the victims had been held against their will in Brunke's home.But he denied that anybody had been harmed in his house, and insisted that he had nothing to do with the killings. "All I know is when those people left my house, they were vertical, they were fine."

 Grieving family members braced for a trial. There were plenty. Carrie Nelson had two young sons. Heather, in addition to her five children, had a mother, step father, and brother, Zach. Jody Hutchinson had 5 children, two grandchildren, a mother and four siblings. They were all confident that the numerous statements made by the defendants would ensure convictions.

 They would be deeply disappointed.

 A jailhouse death and new confession

 Marietta Carlson had been in the Schoolcraft County jail for 47 days, awaiting trial on three counts in the murders of Heather Aldrich, Carrie Nelson and Jody Hutchinson, when she woke up June 16, and complained of stomach pain. After a jail nurse examined her, she was taken to Schoolcraft Memorial Hospital.

 (Photo: Schoolcraft Sheriff's Dept.)

 Doctors initially thought she had gallbladder problems, but as her condition deteriorated, they prepared to send her by helicopter to a hospital in Marquette. She never got on the helicopter and died early the next day. An autopsy found that she had an inflamed heart, possibly because of 10 years of drug abuse.

 Her statements to police about what happened in Brunke's house the night of April 16 had been crucial to the prosecutor's case. But they were inadmissible in court, since they were not under oath, and she could not be cross examined.

 So now the prosecutor was down to two defendants, but with enough evidence to proceed to trial.

 The two men were being held in separate jails, Cordell in Schoolcraft County Jail, and Brunke in Chippewa County jail. Both men began to explore insanity defenses and after their attorneys filed motions, were ordered to undergo psychological exams at the state's Forensic Center. Both ended up there on the same day Sept. 11. It's unclear from records whether their paths crossed while at the center.

 “Jody was the first person to die. I placed a bag over his head and duct taped it around his neck at which time he told me he couldn’t breathe, and I said, ‘no kidding, dummy.’” Garry Cordell's statement to police

 But three weeks later, Cordell, to the astonishment of investigators, suddenly changed his story. In what was to be his fifth confession to police, he now said Brunke was not in the house at the time of the killings, and that he and Carlson had committed the murders.

 He said the two women arrived at the house, looking for morphine, and that he forced the two women into the basement at gunpoint as Hutchinson waited outside in the car. He tied the women up, then invited Hutchinson in. In the basement, Hutchinson pulled a small knife and Cordell disarmed him, then tied him up.

 (Photo: Kathleen Galligan/Detroit Free Press)

 "Jody was the first person to die," Cordell said in his written statement, dated Sept. 29. "I placed a bag over his head and duct taped it around his neck at which time he told me he couldn't breathe, and I said, 'no kidding, dummy.' "

 He then strangled Nelson, he said. Carlson choked Aldrich to death.

 Brunke arrived home from work a short time later, Cordell said. "Once talking to me and finding out that I killed all three of them and that we need to get rid of them, he is really mad at me…" Cordell said in his statement.

 His reason for the triple homicide? His dismay at Alrldich's theft of the drugs from his friend Brunke, and his suspicion that all three victims were working with undercover drug enforcement officers, a claim law enforcement dismissed as ludicrous.

 Cordell continued. The three loaded up the bodies into Hutchinson's SUV, then Brunke drove it into the forest, with Carlson and Cordell following in Brunke's car. Once far enough off the main roads, they stopped and doused the SUV with gasoline. Brunke, Cordell said, threw a flare into the car "and it exploded into flames."

 'One man shall die so that the other may live'

 (Photo: Kathleen Galligan/Detroit Free Press)

 The prosecutor, who has declined to discuss the case with the Free Press, called all the victims' family members together in early October to say he didn't think he could make the murder charges stick against Brunke without Marietta Carlson's statements and in light of Cordell's new confession. The murder charges against Brunke were being dropped and he was going to be allowed to plead to obstruction of justice and lying to a police officer, convictions that could have him out of prison in five years or less. In exchange, he was going to testify against Cordell.

 "We were all crying," Kellie Roll recalled about the meeting in September. "There was all that evidence. It just didn't make sense."

 Some people, including the victims' families, believe Cordell took the fall for Brunke in exchange for cash, or a promise by Brunke to take care of Cordell's elderly mother once Brunke is released from prison in a few years.

 Indeed, there is some evidence money Brunke, or someone acting on his behalf, got money to Cordell after Cordell's last confession, exonerating Brunke.

 On Oct. 19, moments before Brunke was brought into court to testify against Cordell at Cordell's preliminary exam, the prosecutor heard from a source that Brunke owed Cordell $6,500. When Brunke took the stand Noble asked him about it. Brunke seemed caught off guard by the question, then admitted he owed Cordell the money, but was vague about why, saying Cordell had done chores around his house, including landscaping.It was a peculiar answer, since Brunke's rural home sits on a large lot, unkempt with no sign of landscaping at all. Reporters from the Free Press walked the 3-acre lot in October.

 It was also odd because multiple witnesses in the investigation told police that Cordell, unemployed and indigent, often owed money to Brunke, an employed homeowner, and not the other way around.

 The debt had been paid by the time Cordell was back in court three weeks later to officially plead guilty to the three murders. When the prosecutor in court asked whether Brunke still owed him money, Cordell said "not anymore."

 The prosecutor continued. "What did Mr. Brunke owe you money for?"

 Cordell responded, "I don't think that's any of your business."

 And then he added, with a slight grin, "One man shall die so that the other may live."

 Unresolved questions

 Brunke will be in court Jan. 21 when he will be sentenced to prison on the lesser felonies.

 According to his October testimony, he arrived home that day to find Cordell and Carlson in his home with the three dead bodies. He said he was in fear of his life, and helped dispose of the bodies in the woods. When asked by the prosecutor why he lied to police, he said, "Because I thought I could get away with something at that point."

 “How is that they can say this guy wasn't involved? There's something going on here. We're not getting the whole picture.” Ken, a Manistique resident

 The prosecutor then asked, "Did you think you had done something criminal at that point?" And Brunke said "I didn't know but I wanted nothing to do with what happened."

 Once facing life in prison, he will likely do less than five years, under sentencing guidelines.

 The community was both mesmerized and suspicious about how the case unfolded.

 "It's torn this town apart," said Ken, who was drinking at Marley's, a tavern in downtown Manistique, with his friend Dan, and discussing the murders one night in October.

 They asked that their last names not be used, worried about antagonizing the prosecutor in this small town, where everybody knows everybody, but also leery of angering any friends Brunke and Cordell might still have in the drug community.

 The killings have been the topic du jour at this longtime bar and grill, known for the homemade buns on the hamburgers. The consensus, said Ken, is that Brunke got the deal of a lifetime.

 (Photo: Kathleen Galligan/Detroit Free Press)

 "How is that they can say this guy wasn't involved? There's something going on here," he said. "We're not getting the whole picture."

 Out on River Road, where the bodies were burned, the trees are now bare in the late autumn light. It's been eight months since the killings. There is still a faint stain of soot on the road, now almost washed away by rain.

 Not long after the killings, the victims' families and friends put up a makeshift memorial at the site, with small crosses and stuffed animals, and balloons, now-deflated. The crosses read, "mother," "sister," "daughter," "dad."

 But within days of Cordell's sentencing in November, someone smashed the little shrine, breaking the crosses and destroying the mementos.

 "It was where we could all go to remember them," said Kellie Roll. "And now that's gone too."

 And they are still faced with one haunting question:

 Did someone get away with murder that day? |||||Summary:

– A Michigan town so small it doesn't have a McDonald's or a Walmart is the setting for a dark triple-murder mystery involving drugs, love-fueled jealousy, and a burned-out car, all outlined in the Detroit Free Press. The brutal killings of Heather Aldrich, her sister Carrie Nelson, and Nelson's boyfriend Jody Hutchinson—all of whom were reportedly asphyxiated—and the discovery of their bodies in a burned-out SUV in the woods was linked back to Aldrich's relationship with Kenneth Brunke, who police and locals say was a gun-happy Manistique drug dealer, and his friend Garry Cordell, who tried to tell Brunke that Aldrich, the object of Brunke's affections, was using him for drugs. And Aldrich did steal a cocaine stash from Brunke's yard, which was followed by a text from Brunke ostensibly meant to lure Aldrich to come over for some free morphine. Aldrich headed to Brunke's house, along with Nelson and Hutchinson, which is where the story takes a weird turn. At first Cordell and his girlfriend, Marietta Carlson, confessed they and Brunke had killed the victims, though the stories kept changing; Brunke denied participating. But then, despite what looked to be certain convictions for all three, Carlson died while in custody, and Cordell suddenly dropped a bombshell: He and Carlson had committed all the murders themselves and Brunke hadn't been present (though he says Brunke did help set the car on fire with the victims' bodies in it). What some believe: Brunke may have paid off Cordell, an unemployed drifter, or promised to take care of Cordell's elderly mother if he took the blame. The cryptic statement Cordell offered in court when asked about a money exchange only fueled that suspicion: "One man shall die so that the other may live." Cordell was sentenced to life in prison, per WLUC; Brunke will likely get five years or less for obstructing justice and lying to a cop when he's sentenced Jan. 21. (Read all about the fascinating case, including why locals are angry at the county prosecutor, in the Detroit Free Press.)


Write a summary based on this article:

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 This crawl was run at a level 1 (URLs including their embeds, plus the URLs of all outbound links including their embeds)

 The WARC files associated with this crawl are not currently available to the general public. ||||| Summary: Microsoft's acquisition of Nokia is aimed at building a devices and services strategy, but the joint company won't take the same form as Apple.

 Microsoft has been working on its evolution into a devices and services company, away from the services business it has traditionally been, for several years now with limited success.

 Its acquisition of most of Nokia is the latest acceleration of that strategy — to move further away from the moribund world of the beige desktop and towards the sunlit world of smartphones and tablets.

 Owning the desktop (via Windows) and building additional services on top, like Office or search, has been vital for Microsoft's strategy until now, so as our interest shifts from the desktop to the tablet or smartphone it's essential to Microsoft's broader business (even Azure) that it can retain that connection in some form. To be a winner in the business market it also has to be a winner in the consumer market, something that wasn't the case a decade ago.

 As Microsoft's own presentation about the deal, announced on Monday, notes: "With the consumerisation of IT user matter at both home and work... We cannot risk having Apple or Google foreclose app innovation, integration, distribution or economics."

 Nokia lashed itself to Microsoft's mast after losing out to iOS and Android in the smartphone market share stakes and with the limited success of the Lumia range so far enough to keep interest in Windows Phone alive, most analysts are seeing a certain amount of inevitability to the acquisition, even if they are split on what its biggest implications are.

 Forrester mobile analyst Charles Golvin said the steadily diminishing investments by other Windows Phone licensees has left Microsoft with just Nokia as its standard bearer and added Microsoft now appears "poised to adopt a vertically integrated strategy more akin to Apple's".

 But he said Microsoft's challenge remains how to unite the myriad services and brands — Windows, Nokia, Live, Surface, Xbox, Bing and more — into a cohesive experience that will command and cement customer loyalty.

 "That's a tall order and one that should weigh strongly on the board's choice of a new CEO," he said.

 Richard Holway, chairman of analyst TechMarketView, said given that Microsoft paid $8.5bn for Skype in 2011, the price it is paying for Nokia "seems extremely reasonable".

 However, he added: "Our only 'surprise' now is the timing of the announcement. For such a big deal to come just days after Ballmer stood down seems mighty strange."

 For Holway, there is also an opportunity for the enlarged Microsoft to step up its business mobility efforts: "There is undoubtedly a market opportunity for the creation of a provider of mobile solutions for the enterprise. Taking Office onto various mobile platforms. Providing secure emailing in a sector once occupied by BlackBerry."

 But such a move carries its own risks — Microsoft's success has been build on being hardware agnostic and persuading device manufacturers to support it. Already its move into the tablet market with Surface will have unsettled its manufacturers which have struggled to come up with convincing form factors to tackle the decline of the PC. If Nokia's rumoured tablet appears too, this will further complicate Microsoft's relations with these partners who are essential for the success of Windows 8 (as well as Office and other products).

 But, as Holway points out, "on balance, Microsoft needed to make a bold move into mobile. Not doing so would mean certain terminal decline. This way at least holds out some chance of survival."

 Carolina Milanesi, research vice president at analyst Gartner, said by buying rather than just partnering with Nokia, Microsoft gets deeper integration, the benefit of its patents and removes any risk of Nokia either going Android or being acquired by someone else.

 But success against iOS and Android will depend on how the companies integrate.

 "Nokia benefits from higher R&D spend as well as more marketing budget. Microsoft benefits from a good relationship with carriers, good direct channel presence in emerging markets, the potential of going after more aggressively to the business market," she told ZDNet.

 But for Milanesi, business is a secondary concern, even if it is an attractive target where Microsoft, and to a less extent Nokia, have experience: "First and foremost it needs to be about consumers. Enterprise are certainly a target especially considering the state BlackBerry is in but consumers make or break a phone vendor today."

 From Milanesi's point of view, emerging markets need to be a longer term target for Microsoft — but the battle needs to be won in the mature markets first.

 For Forrester principal analyst Thomas Husson, Nokia adds to Microsoft's developing market strategy. It's looking increasingly likely that the US and western European smartphone market is reaching saturation, so that most growth will come from emerging markets. Here Nokia's Asha devices could play a neat role as an 'on-ramp' for consumers buying their first smartphone. Tied in with a revamped tablet strategy this could open up a new front against Android in particular.

 But Husson cautioned: "This is going to be a long journey. In some countries, Windows Phone 8 market share is now above five percent and close to 10 percent. It thus still offers a limited reach for developers and marketers.

 "Nokia is indeed still massivley popular in some emerging countries but competition is very high with Far East manufacturers and low-cost Android devices. I think it will depend on Microsoft's new strategy for emerging markets beyond just mobile phones."

 All of this shows the number of competing — and occasionally contradictory — demands upon Microsoft's management.

 As the incumbent player in a fading market, Microsoft has a take into account those differing requirements as it tries to build for the future. For example, balancing Microsoft's business customers against the need to get into consumer tech, the need to build its own hardware business against the need to keep manufacturers onside, and building up a mobile business while protecting its PC heritage.

 It's easy to look at Apple's integrated hardware and software model and the rich ecosystem that sits around it, but it's much harder to emulate.

 Global coverage: Nokia Interim CEO: Microsoft deal makes us stronger | Even with Nokia devices, Microsoft wants to license Windows Phone to other makers | Does its Nokia buy thwart or fuel a possible Microsoft break-up? | Microsoft shows how to flush decades of Nokia goodwill away | Microsoft gets less than $10 per Windows Phone unit | Microsoft-Nokia deal: Reaction from the Twitter trenches | Elop drops Nokia CEO role to lead devices team under Microsoft deal

 Further reading ||||| Microsoft is buying Nokia's cell phone business and licensing its patent portfolio, according to both companies.

 In 2003, Nokia's cell phone market share exceeded 35%. That same year, its phone business alone posted an operating profit of 5.48 billion euros. Today's sale price, which includes 1.65 billion euros in patents, is just 5.44 billion euros. It's been a rough decade.

 Nokia's cell phone collapse has been a spectacular one. The Finnish giant dominated the dumbphone era after Motorola, another faded star that recently fell into the hands of a comparative upstart. But it was blindsided by Apple, then deprived of a chance to regain its footing by an even more aggressive Google, which followed close behind.

 The story, in hindsight, is simple: Nokia did not have a truly compelling smartphone ready when a large segment of the developed world was first compelled by smartphones. Whether this was the result of complacency — Nokia was, in the mid-2000s, the leader of the niche smartphone category — doesn't matter now.

 Nokia's miscalculations became impossible to ignore in 2008, the same year Microsoft decided, internally at least, to scrap its ancient and inadequate Windows Mobile platform in favor of something entirely new. Under these circumstances, it's easy to imagine how a sort of camaraderie might have emerged at the time, or at least a mutual sympathy. Certainly a shared interest: to break back into the market from which they had been unceremoniously expelled.

 During the next two years, while Microsoft readied Windows Phone 7 and Nokia floundered on, the seeds of Sunday's deal were sewn. A chastened Nokia was a natural partner for the tardy but determined Microsoft; it needed a software solution and Microsoft needed help with hardware. The 2009 vision of 2013 renders clearly: Two giants, united after some missteps, regain their rightful place. By 2010, when the head of Microsoft's Business division left to take the helm at Nokia, the gears were moving. Many at the time wondered if Stephen Elop's time at Nokia would be spent grooming the company for purchase — a foreigner in all possible ways, he began his time at the company with a memo rightly but offensively declaring Nokia's proud platform a failure, and quickly pledged the company's commitment to the still-tiny Windows Phone. It felt like a radical about-face, but no matter: Nokia and Microsoft were going to save each other.

 Now, with Elop returning to Microsoft after a job well done — well, a job, done —that plan has come to fruition. The only problem is that there's little left to save. Windows Phone has barely dented the now much larger smartphone market. Nokia hasn't had a Windows Phone hit. This incongruity — between a successfully executed, slyly strategic long-term merger plan and a much grander, more general sense of failure — might explain Microsoft's deeply strange and somewhat sad stated goals for its Nokia acquisition.

 Microsoft' s "Strategic Rationale," titled "Accelerating Growth," is a disjointed and bizarre document. It manages to sound both insane and uninspiring, outlining modest goals that still sound unrealistic.

 For example, it lays out a plan to pull in over $45 billion dollars in smartphone revenue by 2018. But it plans on doing this by securing just 15% of the projected global smartphone market — not exactly a world-beating plan, keeping in mind the time frame. Consider: 2018 is five years away. Five years ago was the year the App Store first opened. ||||| Hello there,

 There is a pertinent story about a man who was working on an oil platform in the North Sea. He woke up one night from a loud explosion, which suddenly set his entire oil platform on fire. In mere moments, he was surrounded by flames. Through the smoke and heat, he barely made his way out of the chaos to the platform's edge. When he looked down over the edge, all he could see were the dark, cold, foreboding Atlantic waters.

 As the fire approached him, the man had mere seconds to react. He could stand on the platform, and inevitably be consumed by the burning flames. Or, he could plunge 30 meters in to the freezing waters. The man was standing upon a "burning platform," and he needed to make a choice.

 He decided to jump. It was unexpected. In ordinary circumstances, the man would never consider plunging into icy waters. But these were not ordinary times - his platform was on fire. The man survived the fall and the waters. After he was rescued, he noted that a "burning platform" caused a radical change in his behaviour.

 We too, are standing on a "burning platform," and we must decide how we are going to change our behaviour.

 Over the past few months, I've shared with you what I've heard from our shareholders, operators, developers, suppliers and from you. Today, I'm going to share what I've learned and what I have come to believe.

 I have learned that we are standing on a burning platform.

 And, we have more than one explosion - we have multiple points of scorching heat that are fuelling a blazing fire around us.

 For example, there is intense heat coming from our competitors, more rapidly than we ever expected. Apple disrupted the market by redefining the smartphone and attracting developers to a closed, but very powerful ecosystem.

 In 2008, Apple's market share in the $300+ price range was 25 percent; by 2010 it escalated to 61 percent. They are enjoying a tremendous growth trajectory with a 78 percent earnings growth year over year in Q4 2010. Apple demonstrated that if designed well, consumers would buy a high-priced phone with a great experience and developers would build applications. They changed the game, and today, Apple owns the high-end range.

 And then, there is Android. In about two years, Android created a platform that attracts application developers, service providers and hardware manufacturers. Android came in at the high-end, they are now winning the mid-range, and quickly they are going downstream to phones under €100. Google has become a gravitational force, drawing much of the industry's innovation to its core.

 Let's not forget about the low-end price range. In 2008, MediaTek supplied complete reference designs for phone chipsets, which enabled manufacturers in the Shenzhen region of China to produce phones at an unbelievable pace. By some accounts, this ecosystem now produces more than one third of the phones sold globally - taking share from us in emerging markets.

 While competitors poured flames on our market share, what happened at Nokia? We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of hindsight, we now find ourselves years behind.

 The first iPhone shipped in 2007, and we still don't have a product that is close to their experience. Android came on the scene just over 2 years ago, and this week they took our leadership position in smartphone volumes. Unbelievable.

 We have some brilliant sources of innovation inside Nokia, but we are not bringing it to market fast enough. We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market.

 At the midrange, we have Symbian. It has proven to be non-competitive in leading markets like North America. Additionally, Symbian is proving to be an increasingly difficult environment in which to develop to meet the continuously expanding consumer requirements, leading to slowness in product development and also creating a disadvantage when we seek to take advantage of new hardware platforms. As a result, if we continue like before, we will get further and further behind, while our competitors advance further and further ahead.

 At the lower-end price range, Chinese OEMs are cranking out a device much faster than, as one Nokia employee said only partially in jest, "the time that it takes us to polish a PowerPoint presentation." They are fast, they are cheap, and they are challenging us.

 And the truly perplexing aspect is that we're not even fighting with the right weapons. We are still too often trying to approach each price range on a device-to-device basis.

 The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, ecommerce, advertising, search, social applications, location-based services, unified communications and many other things. Our competitors aren't taking our market share with devices; they are taking our market share with an entire ecosystem. This means we're going to have to decide how we either build, catalyse or join an ecosystem.

 This is one of the decisions we need to make. In the meantime, we've lost market share, we've lost mind share and we've lost time.

 On Tuesday, Standard & Poor's informed that they will put our A long term and A-1 short term ratings on negative credit watch. This is a similar rating action to the one that Moody's took last week. Basically it means that during the next few weeks they will make an analysis of Nokia, and decide on a possible credit rating downgrade. Why are these credit agencies contemplating these changes? Because they are concerned about our competitiveness.

 Consumer preference for Nokia declined worldwide. In the UK, our brand preference has slipped to 20 percent, which is 8 percent lower than last year. That means only 1 out of 5 people in the UK prefer Nokia to other brands. It's also down in the other markets, which are traditionally our strongholds: Russia, Germany, Indonesia, UAE, and on and on and on.

 How did we get to this point? Why did we fall behind when the world around us evolved?

 This is what I have been trying to understand. I believe at least some of it has been due to our attitude inside Nokia. We poured gasoline on our own burning platform. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven't been delivering innovation fast enough. We're not collaborating internally.

 Nokia, our platform is burning.

 We are working on a path forward -- a path to rebuild our market leadership. When we share the new strategy on February 11, it will be a huge effort to transform our company. But, I believe that together, we can face the challenges ahead of us. Together, we can choose to define our future.

 The burning platform, upon which the man found himself, caused the man to shift his behaviour, and take a bold and brave step into an uncertain future. He was able to tell his story. Now, we have a great opportunity to do the same.

 Stephen. |||||

– Why did Microsoft buy Nokia's phone business? We now know Microsoft's answer: The computing giant released a 30-slide presentation today arguing that the move will improve Microsoft's margins on Windows phones, which will allow it to invest more in the platform, which will accelerate sales and market share growth, the Washington Post reports. But John Herrman at Buzzfeed has another explanation: "Fear of dying alone." Here's what he and other pundits are saying: The presentation "manages to sound both insane and uninspiring, outlining modest goals that still sound unrealistic," Herman argues—like capturing a whole 15% of the smartphone market. "It's a fitting end for the close of Microsoft's Ballmer era, during which the company … missed out on the most important change in consumer electronics in decades" while remaining profitable in unglamorous ways. Like everyone, Microsoft is trying to ape the Apple model, MobileOpportunity observes. But it's not so sure that's a good idea. "There already is an apple," the blog points out, and other software/hardware hybrid companies, like Palm and BlackBerry, have been crushed under its heel. Maybe Microsoft should have tried to patch up its tried-and-true strategy of licensing its OS. The move risks complicating Microsoft's crucial relationships with other PC and device manufacturers, one analyst tells ZDNet. But he adds that "Microsoft needed to make a bold move" or face "certain terminal decline," and that the price it paid for Nokia "seems extremely reasonable." Meanwhile, Matthew Yglesias at Slate digs up a fairly interesting memo from Nokia CEO (and, perhaps, Microsoft heir apparent) Stephen Elop, in which he uses the story of a Deepwater Horizon worker leaping from the burning oil platform—a seemingly desperate, yet necessary move—to explain the company's shift from its own failed OS to Windows Phone. Of course, Yglesias notes, that move "was basically a total failure." To read the full parable, click here.


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– Nintendo's console business might be on its last life. The company today slashed its Wii U sales forecast for the year ending in March by a staggering 70%, anticipating sales of just 2.8 million units, Reuters reports. It also halved its projection for Wii U game sales to 19 million units, and dropped its 3DS forecast from 18 million to 13.5 million. The numbers are especially bad, because the second year of sales is typically a peak period for consoles, the Wall Street Journal points out. "We are thinking about a new business structure," President Satoru Iwata said in an apologetic news conference, according to Bloomberg. He said the company wanted to take advantage of mobile gaming, but "it's not as simple as enabling Mario to move on a smartphone." Some analysts say the company is investing heavily in research and development, and could even have a new console in the works. Despite losing money for now three years in a row, the company is sitting on $4.44 billion in cash.

Nintendo Co. (7974) President Satoru Iwata said the maker of video-game machines is considering a new business model after forecasting a surprise 25 billion-yen ($240 million) annual loss because of tepid demand for the Wii U.

 Nintendo fell the most in more than 12 years in the U.S. yesterday. The company had previously projected profit of 55 billion yen for the year ending March as it counted on Christmas shoppers to revive sales of the Wii U console featuring games with iconic characters Mario and Zelda. Nintendo cut its forecasts for Wii U console sales to 2.8 million units from 9 million and for Wii U game sales to 19 million units from 38 million.

 The family-focused content of Nintendo is losing its appeal as titles were delayed, casual gamers migrate to mobile devices, and hardcore players opt for the faster Sony PlayStation 4 and Microsoft Xbox One. The owner of Pokemon and Donkey Kong also refuses to offer games with its characters on mobile devices, limiting its ability to profit online players’ surging demand.

 Related:

 “We are thinking about a new business structure,” Iwata said at a press conference yesterday in Osaka, Japan. “Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It’s not as simple as enabling Mario to move on a smartphone.”

 Photographer: Patrick Fallon/Bloomberg Attendees use the Nintendo Co. Wii U console at the E3 Expo in Los Angeles. Close Attendees use the Nintendo Co. Wii U console at the E3 Expo in Los Angeles. Close Open Photographer: Patrick Fallon/Bloomberg Attendees use the Nintendo Co. Wii U console at the E3 Expo in Los Angeles.

 Nintendo American depositary receipts fell 17 percent to $14.90 yesterday New York, their biggest decline since September 2001. Each ADR equals 0.125 underlying shares.

 Nintendo declined 2.8 percent to 14,645 yen yesterday in Tokyo, before the announcement. The shares advanced 54 percent last year.

 Apple, Samsung

 The new forecast for the Wii U is less than the 3.45 million units sold the previous fiscal year. The Kyoto, Japan-based company also cut its forecast for operating income to a 35 billion-yen loss from the prior 100 million-yen profit.

 Projections for sales of its handheld 3DS player were cut to 13.5 million units from 18 million, and for sales of 3DS games to 66 million units from 80 million.

 Nintendo posted a quarterly loss of 8 billion yen in October after cutting the price of the console in the face of new machines from Sony Corp. (6758) and Microsoft Corp. Iwata is trying to lure consumers who prefer playing games on mobile devices from Apple Inc. and Samsung Electronics Co. (005930)

 More Pressure

 “The video-game market has moved into smartphones and tablets,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. “Nintendo needs to expand from their current hardware business model. It’s a structural problem.”

 Photographer: Scott Eells/Bloomberg Customers play Nintendo Co. Wii U video games inside a Nintendo World store in New York. Close Customers play Nintendo Co. Wii U video games inside a Nintendo World store in New York. Close Open Photographer: Scott Eells/Bloomberg Customers play Nintendo Co. Wii U video games inside a Nintendo World store in New York.

 The revisions increase the pressure on Iwata, who vowed in October to meet a forecast of 100 billion yen in full-year operating profit and 9 million units in Wii U sales. Nintendo has lost about 80 percent of its market value since the introduction of the original Wii drove shares to a record high of 72,100 yen in November 2007, according to data compiled by Bloomberg.

 Its market capitalization is about $20 billion -- less than Samsung’s previously announced capital expenditures.

 “The revision is much worse than expected,” Yusuke Tsunoda, an analyst at Tokai Tokyo Securities Co. in Tokyo, said by phone. “It’s going to be a third consecutive annual operating loss and that raises a serious management issue.”

 Iwata said any announcement about a pay cut would come later this month when the company releases third-quarter earnings. There are no plans to reshuffle management in the near term, he said.

 Lower Dividend

 The company reduced its planned dividend for the fiscal year to 100 yen from 260 yen. Nintendo revised its foreign-exchange assumptions to 100 yen to the dollar from 90 yen, and to 140 yen per euro from 120 yen.

 “We were unable to sufficiently take advantage of the weaker yen,” Iwata said.

 Even with new titles including “Pikmin 3,” Nintendo failed to capitalize on U.S. video-game product sales that surged to their highest in three years in December.

 Hardware sales increased 28 percent to $1.37 billion from a year earlier, Port Washington, New York-based NPD Group Inc. said on Jan. 16. The tally, the highest since spending hit $1.84 billion in December 2010, drove total retail sales for the industry to their fifth straight monthly gain.

 Price Cut

 The Wii U features a tablet-like, 6.2-inch touchscreen controller that lets players connect wirelessly to the console and shift the display between the device and a television. The consoles compete in a market where smartphone sales are on track to exceed 1 billion units this year, researcher IDC said Oct. 29.

 The Wii U’s price in the U.S. was cut by $50 to $299.99 on Sept. 20, while the Japanese price remained a suggested 30,000 yen.

 Nintendo introduced the 2DS portable machine, resembling a tablet, in October for $129.99 to lure first-time and casual gamers.

 The global video-game market may reach $111 billion by 2015, researcher Gartner Inc. said Oct. 29. Mobile games are the fastest-growing segment, with revenue set to reach $22 billion by 2015 from $13.2 billion this year, Gartner said.

 “We cannot continue a business without winning,” Iwata said. “We must take a skeptical approach whether we can still simply make game players, offer them in the same way as in the past for 20,000 yen or 30,000 yen, and sell titles for a couple of thousand yen each.”

 To contact the reporters on this story: Masatsugu Horie in Osaka at mhorie3@bloomberg.net; Takashi Amano in Tokyo at tamano6@bloomberg.net

 To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net ||||| Logos are seen on Nintendo Co's Wii U game console (bottom) and its controller at the company's headquarters in Kyoto, western Japan in this January 7, 2013 file photo.

 TOKYO Nintendo Co Ltd said on Friday that sales of its Wii U consoles had flopped, pushing it to a third consecutive annual loss and raising a question mark over its future in a home console market increasingly dominated by Sony Corp and Microsoft Corp.

 The company that got its start making playing cards more than a century ago slashed its global Wii U sales forecast for the year to March 31 by almost 70 percent to 2.8 million units. It cut its sales forecast for its handheld 3DS to 13.5 million units from 18 million. The Wii U is the successor to its hit Wii console.

 Nintendo's president, Satoru Iwata, who last year pledged to return the hobbled game maker to profit this business year, apologized to shareholders at a briefing in Osaka, but said his failure to fulfill his promise did not mean he had to resign.

 "There will be no major management shake-up in the short term," Iwata told reporters.

 Pressure will likely mount on the architect of the Wii success in 2006 to step aside or shift course to focus on making money from "Super Mario" and other software titles. Nintendo so far has refused to allow its games to be played on machines built by competitors or on tablets or other mobile devices that are used by gamers.

 In the past the company has blamed a lack of titles for poor sales, but even its popular family-friendly games are losing out on sales to more hard-core titles like "Grand Theft Auto" played on rival machines.

 "The fact that the 'Wii U strategy' has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management.

 Nintendo this business year now expects an operating loss of 35 billion yen ($335.76 million) compared with an initial forecast for a 100 billion yen profit. The new estimate also falls drastically short of the average forecast of a 54.7 billion yen profit in a survey of 18 analysts by Thomson Reuters I/B/E/S.

 The latest warning comes just three months after the Japanese company reiterated its sales projections for the Wii U, counting on the console to revive its fortunes as Microsoft released its new XBox One and Sony released its PlayStation 4 to the public.

 "We failed to reach our target for hardware sales during the year-end, when revenues are the highest," said Iwata.

 In 2006, Iwata was celebrated worldwide after creating a new niche with the Wii console designed for the whole family to use rather than hardcore gamers. That success boosted Nintendo's cash pile to around $14 billion, money it will have to dip into again to help cover its latest deficit.

 Nintendo on Friday also warned of a net loss of 25 billion yen for the year ending on March 31, a substantial reversal from its prior projection of a 55 billion yen profit. It now expects revenues of 590 billion yen, down 36 percent from its prior forecast. It cut its full-year dividend to 100 yen from 260 yen.

 Nintendo shares have fallen almost 10 percent since hitting a two-and-a-half year high of 15,880 yen on January 10. The stock climbed 55 percent in 2013, in line with a 57 percent rally by the benchmark Nikkei average but underperforming a 91 percent surge by rival Sony.

 ($1 = 104.2400 Japanese yen)

 (Additional reporting by Ayai Tomisawa, Dominic Lau and Reiji Murai; Writing by Tim Kelly; Editing by Edmund Klamann and Matt Driskill) |||||