I think the dead step-brother Jason killed him. Can't be 100% sure or anything, but a couple of things indicate that he killed Jason or at least knew he was dead and covered it up.
1. The fact that he reported to the police that Nick had tried to break into the house one month later. This is apparently the only real sighting of the kid after he disappeared and it was alleged by Jason. Like the private detective said, there's very little reason to do this unless you're trying to give off the impression that the kid is alive and out there when in fact you know he's dead, and this has of course been seen in other cases by abductors/murderers. It just seems so strange that the kid would try to break back into the house soon after he went missing, and then never be seen again - it's been 20 years and that's the ONLY apparent sighting? It's almost certain to be a lie, and I can think of no other reasonable explanation for that lie other than Jason knowing the kid was dead and wanting to make it look like he was alive.
2. Although the guy is obviously a sociopathic liar, the fact that when he saw Jason he just said 'good luck' sits very well with the theory that Jason at least knew he was dead. For me, it's pretty good evidence (if true) that Jason knew the kid was dead and wasn't coming back. Granted, it's quite an assumption to assume that this isn't a lie, but it fits with what was said regarding Jason being questioned at the drug rehab facility - that he was disinterested in what happened to the kid and showed no concern.
It's hard to rule out a stranger abduction, it could so easily have happened, but I think the theory that Jason did it fits better. Interviews in the doc suggest that Jason and the kid did not get along, and that Jason was heavily into drugs and could be violent. It's not hard to imagine a situation in which the kid ends up dead here - drug addled Jason snaps and it's manslaughter, he covers it up. Also possible (but imo less likely) that he OD'd on Jason's drugs and he covered it up.
Assuming some scenario in which it was manslaughter/murder, did the family know? I don't think you can conclude that they knew just because they were apparently fooled into thinking some 23y old Frenchman was their son when he wasn't. I think it's possible that desperate people in a situation like that would believe a cunning con-man when they just want him back so much. I don't think the sister or the brother in law knew anything, they seem fairly genuine in this doc. It's harder to tell with the mother though, she seems less forthcoming and you have the lie detector tests etc. (not that they're really worth anything but a little suspicion). I think she knows the kid is dead and Jason was involved, but I doubt she actively participated in covering it up.
I'd be interested in knowing if any law enforcement actually did a proper search of that property at any point after the kid went missing.
Is this your homework, Larry?
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