Peters was last seen at his home in El Cajon, California on September 3, 1988. Shortly before his disappearance, he moved out of his parents' residence in La Mesa, California and into an apartment in the 1000 block of Peach Avenue, which he shared with a roommate. Peters's mother last saw him ten days after he moved out, when he returned to her home to drop off his house keys. His roommate stated that Peters suddenly became upset, packed a duffle bag and and walked out of their apartment, leaving all of his other belongings behind, and never returned. After Peters did not return his mother's phone calls or try to contact her, she asked the police to check on him. In December 1988, his green 1970 Volkswagen Beetle was found abandoned and stripped of parts in a remote area of Ramona, California. There are rumors that Peters's disappearance may be tied to occult activity, specifically the Children of the Rainbow group.