Sherman was last seen on August 2, 1995 at her home in Indianapolis. In August of 1995, Peggy Sherman lived with a friend in the 4500 block of Grace Street on the city's east side. The night before she went missing, Peggy talked on the phone with two people - her mother and another man. The next morning, Peggy left the house to have her car repaired. When Peggy didn't show up for work at National City Bank in downtown Indianapolis, her parents filed a missing person report. Her vehicle, a 1990 white Chevrolet Lumina; 4 door was recovered in Greenwood, IN 1st week in August 1995. Peggy kept $50,000 hidden in a freezer, but when police came to Peggy's house to investigate, the money was gone. Police found blood on a mattress that had sections cut out of it. DNA tests revealed there was a 99.9 % chance it was Peggy's blood. Detectives found Peggy's blood on all four walls, a bedpost, a lamp and the ceiling. Cadaver dogs made a hit on the trunk of a disabled car parked in Peggy's garage. Detectives say a car cover was missing. Police never found the car cover or Peggy.
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