Introduction to the Case
A long-time leader of a notorious South Los Angeles-based street gang identified by authorities as an entertainment entrepreneur and a self-proclaimed community activist was charged in a federal complaint that alleges he ran a criminal enterprise, authorities announced Tuesday.
The Alleged Criminal Enterprise
Eugene Henley Jr., 58, aka Big U of the South LA community of Hyde Park, was part of a "mafia-like" criminal operation identified in court documents as Big U Enterprise, which used Henley’s association with the Rollin’ 60s street gang, the U.S. Attorney’s Office said. Henley, considered a wanted fugitive, is accused in the federal complaint of running a criminal enterprise that committed a series of racketeering crimes, including extortion, human trafficking, fraud, and the 2021 murder of an aspiring rap musician, the Justice Department said.
The Charity Front
Henley portrayed himself as an anti-gang activist associated with a charity that was a front for the criminal operation, authorities said. Henley received grants from government agencies for the charity, which were then diverted to the criminal enterprise, according to authorities. "The allegations in the complaint unsealed today reveal a criminal enterprise that engaged in murder, extortion, human trafficking, and fraud – all led by a supposed anti-gang activist and purported music entrepreneur who was nothing more than a violent street criminal," said Acting United States Attorney Joseph McNally.
Charges and Arrests
Henley is charged in the complaint with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Arrest warrants were executed Tuesday morning in connection with the investigation. Four people named in the complaint were already in custody. Ten more were taken into custody since Monday. Authorities said Henley is among five others sought in the investigation. The criminal group has been operating since at least 2010, according to authorities.
Fraud and Embezzlement
Donors, including celebrities and athletes, were defrauded by nonprofits under the Big U Enterprise umbrella, including Henley’s Developing Options charity, authorities said. The Hyde Park-based charity was marketed as a youth program to divert kids away from gangs, violence, drugs and other criminal activity. "But the Big U Enterprise allegedly used it as a front for fraudulent purposes and to insulate its members from suspicion by law enforcement, the DOJ said in a statement. "Henley allegedly embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account."
Funding and Investigation
The criminal complaint indicated that Developing Options is primarily funded through the City of Los Angeles’ Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation. "The lead defendant and others in this case have for too long gotten away with violent acts and stealing money from taxpayers and well-intentioned donors whether they use intimidation tactics or wield influence as rehabilitated original gangsters,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners have worked for four years to bring justice in this case and will continue to rule out this kind of criminal behavior plaguing the streets of Los Angeles."
The Murder of an Aspiring Musician
In January 2021, Henley killed an aspiring musician signed to Uneek Music, Henley’s music label, the DOJ said. Henley and Uneek Music paid the victim to travel to Las Vegas to record music at a Grammy Award-winning music producer’s studio, investigators said. The victim, identified in court documents as RW, did not record at an agreed-upon rate and recorded a song that was defamatory about Henley, who then drove the victim to North Las Vegas, shot him in the head, and left his body in a ditch off Interstate 15, according to authorities.
Conclusion
The case against Eugene Henley Jr. and the Big U Enterprise is a prime example of how criminal organizations can infiltrate and exploit community programs and charities for their own gain. The allegations of murder, extortion, human trafficking, and fraud are a stark reminder of the dangers of organized crime and the importance of law enforcement efforts to combat it.
FAQs
Q: Who is Eugene Henley Jr.?
A: Eugene Henley Jr., also known as Big U, is a long-time leader of a notorious South Los Angeles-based street gang and a self-proclaimed community activist.
Q: What is the Big U Enterprise?
A: The Big U Enterprise is a "mafia-like" criminal operation that allegedly committed a series of racketeering crimes, including extortion, human trafficking, fraud, and murder.
Q: What is the Developing Options charity?
A: The Developing Options charity is a nonprofit organization that was allegedly used as a front for the Big U Enterprise’s criminal activities.
Q: How was the charity funded?
A: The charity was primarily funded through the City of Los Angeles’ Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation.
Q: What are the allegations against Eugene Henley Jr.?
A: Henley is accused of running a criminal enterprise that committed a series of racketeering crimes, including extortion, human trafficking, fraud, and the 2021 murder of an aspiring rap musician.
