LA Crips gang leader arrested for ‘mafia-like' crimes appears in federal court

A long-time leader of the Rollin 60s Crips gang and self-proclaimed community activist made his first appearance in federal court after he was charged in a federal complaint that alleges he ran a vast criminal enterprise.

Eugene "Big U" Henley Jr., 58, is accused of using his charity Developing Options to receive millions of dollars in grant money from the City of Los Angeles. At the same time, authorities say he ran a "mafia-like" criminal operation.

Henley received grants from LA's Gang Reduction and Youth Development Program (GRYD) for the charity, which were then diverted to the criminal enterprise, according to authorities.

Another nonprofit leader and grant recipient praised the work of Henley's charity and said he was shocked to hear of his arrest.

"They do tremendous work with youth, particularly around sports and gang intervention," said Robert Sausedo, CEO of the nonprofit Community Build which also works on gang reduction. "Some of the things I heard about, you know, I was shocked to hear, but you know, we're always shocked when we hear the initial news. And that's why I always tell people, hey, let's not rush to judgment."

Sausedo’s nonprofit is also a GRYD grant recipient and is a big believer in the program, even after the arrest.

"The GRYD intervention and prevention employees across the spectrum of GRYD agencies are really the silent heroes you don't know anything about or hear about," said Sausedo. "Several years ago, when grid when murders in Los Angeles were high of 1200 per year, that number has come down to I think just over a couple 100 per year. And that's the direct result of us doing the type of work we do."

The nonprofit leader not only believes in the program but speaks highly of Henley's charity.

"I am aware of the great work that they've done in their section of town," said Sausedo. "He and his organization, we’ve done great work together, around intervention, and I just think that we need to let the process take its place and see where it lands."

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. Henley was on the run prior to the announcement of his arrest Wednesday evening.

The criminal group at the center of the DOJ investigation has been operating since at least 2010.

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."

In a statement, Mayor Karen Bass' press secretary said the city program has "strict oversight."

"The City has zero tolerance for malfeasance and over the past two years increased oversight on GRYD programs," press secretary De'Marcus Finnell said. "The City has strict oversight in place, however the complaint alleges a sophisticated effort to thwart oversight for many avenues of funding including the City. This alleged act does not reflect the work of the GRYD program overall, which has helped lead to a dramatic decrease in gang-related violence citywide two years in a row."