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Government and tax records show millions of dollars have poured into a non-profit, which was allegedly at the center of a criminal enterprise involving a leader from the Rollin 60s Crips, a South Los Angeles gang.
Eugene “Big U” Henley, Jr., 58, of the South LA community of Hyde Park, was arrested Wednesday for being part of a “mafia-like” criminal operation identified in court documents as Big U Enterprise, which benefited from Henley’s association with the Rollin’ 60s street gang, the U.S. Attorney’s Office said.
While the Ex-offender Fellowship Network, one of Henley’s nonprofits, faced suspensions by the California Franchise Tax Board, the city of Los Angeles has been paying the group millions of dollars with the amounts increasing in the last few years.
How Henley’s organization received funding
The state tax authority issued a suspension notice in April 2025 for the organization, which also did business under the name Developing Options.
But the most recent contract with the city of Los Angeles shows a payment of nearly $800,000 was due in July 2024, the final installment of a four-year agreement that paid the organization more than $2.2 million for intervention work.
Henley, who is facing racketeering and corruption charges for allegedly misusing the funds meant for city gang intervention efforts, began forming non-profits in 2009, state records show,
City records also reveal Henley’s groups began receiving the city’s gang intervention funding as far back as 2011.
Between 2018 and 2023, LA controller payment records show Henley’s groups received around $500,000 a year.
A significant increase came in 2023 following then-Mayor Eric Garcetti’s efforts to increase funding for intervention work after the rise in violent crimes that followed the COVID-19 pandemic.
The tax records for the Ex-offender Fellowship also show it received private donations with the total revenue going from around $500,000 a year to nearly $800,000. Then the last tax return available says the nonprofit’s revenue reached nearly $2 million in 2023.
Where was the money going?
The tax returns show while Henley was paid $95,000 as president and director, nearly all the money collected went to compensate unnamed top staff members, including corporate officers, directors and trustees.
According to the criminal complaint made public Wednesday, Henley diverted much of that money to his personal bank accounts and pocketed tens of thousands of dollars in donations intended for the group, including a $20,000 contribution from an NBA All-star.
Federal prosecutors also alleged that Henley didn’t pay taxes on a lot of his money and accused him of another financial scheme to boost his income on paper so he could qualify for a home loan.
How is the LA city government reacting?
The mayor’s office didn’t answer NBC Los Angeles’ specific questions about the nonprofit’s status, but said the city has “strict oversight in place.”
“The complaint alleges a sophisticated effort to thwart oversight for many avenues of funding including the city,” the mayor’s office said in a statement.
The state franchise tax board provided general information about suspensions of nonprofits but said it could not discuss this entity specifically.
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