Government and tax records show that millions of dollars of gang intervention funds have been poured into nonprofits run by suspected 60’s Clip’s allegedly gang leaders, with prosecutors saying Wednesday they suspected of diverting thousands of dollars for his personal use.
Eugene “Big U” Henry Jr., 58, of the South LA community in Hyde Park, was arrested Wednesday after he accused him of accusing a “mafia-like” criminal organization that he called the “big U Enterprises.”
The complaint alleges that Henry has sucked up over the years to fund his personal use intervention.
The EX Criminal Fellowship is registered as an IRS nonprofit, development options are registered as a California nonprofit, and the City of LA has listed both names in its contract with Henry.
The California Franchise Tax Commission, a state tax collector, listed development options as “stop” as of April 2024, but public records did not cite reasons.
A spokesman for the FTB declined to comment on a particular suspension, but wrote that the suspended nonprofit organizations have lost their nonprofit status, are unable to do business and may face fines.
How Henry’s organization received funds
The latest deal between Henry’s group and the city of Los Angeles shows that the nonprofit is expected to receive nearly $800,000 in July 2024.
The city has issued a contract as part of the Gang Reduction and Youth Development Program (Gryd), which funds various nonprofit community groups that provide gang intervention services.
City records also show that Henry’s group began receiving city gang intervention funds until 2011, and according to records from the LA City Controller Office, Henry’s group received about $500,000 a year between 2018 and 2021.
Following the rise in violent crime following the Covid-19 pandemic, city funding rose in 2023 following the efforts of then Mayor Eric Garcetti to increase funding for intervention work.
The former offender fellowship’s federal tax records show that they received other private contributions during that time, with their total revenues rising from around $500,000 in the years of 2022 to nearly $800,000, with revenues reaching nearly $2 million in 2023.
The source of private donations is not included in the public tax return.
Where did the money go?
The tax return compensated most of the proceeds in 2023 for unnamed top staff, including corporate executives, directors and councillors, while Henry was paid $95,000 as president and director.
Federal prosecutors say Henry believes much of the money has been decoupled into his personal bank account, according to criminal charges released Wednesday.
Federal prosecutors also alleged that Henry did not file an accurate tax return, could not pay taxes on undeclared income, and engaged in a plan to fraudulent banks to qualify for a mortgage.
How is the LA city government responding?
The mayor’s office did not answer certain questions regarding the status of the NBC Los Angeles nonprofit, but said the city is “hard surveillance.”
“The city has zero resistance to fraud and has seen an increase in GRYD program surveillance over the past two years,” the spokesman emailed.
“The city is under strict surveillance, but the complaint advocates sophisticated efforts to oversee many funding paths, including the city,” Bass ” office said.
“This suspected behavior, with over 20 organisations acting as grid service providers, hundreds of people providing prevention and intervention services throughout the city of LA, does not reflect the work of the entire GRYD program.
NBC La asked the mayor’s office to document a record of “desk compliance assessments” and other surveillance of funding for Henry and other glide providers.
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