Author: MIL-OSI Publisher

Source: US FBI

FRESNO, Calif. – Daniel Vincent Salazar, Jr., 29, of Modesto was sentenced today to 45 years in prison for his convictions on five counts of sexual exploitation of a minor, Acting United States Attorney Michele Beckwith announced.  After serving his prison sentence, Salazar will be subject to a 25-year term of supervised release during which his access to minors, electronic devices, and the internet will be restricted.  He will also be required to register as sex offender.

According to court documents, Salazar used Instagram and Snapchat accounts on dates between December 2018 and January 2020 to contact minor females and coerce them into creating and sending to him images of themselves engaged in sexually explicit conduct. The females Salazar targeted were typically 12 to 14 years old. If victims refused to cooperate with Salazar’s demands, he threatened to send explicit images that he had already received to classmates and family members of victims. When one victim expressed suicidal thoughts in their chats, Salazar made comments such as “[t]hat’s on you. Not my fault,” and “[t]he cops can’t do nothing trust me.” Salazar has been in custody since his arrest on January 20, 2020. 

The investigation was conducted by Patterson Police Services, the Los Banos and San Jose Police Departments, Stanislaus County Sheriff’s Department, California Department of Corrections and Rehabilitation – Division of Adult Parole Operations, and the Federal Bureau of Investigation.  Assistant U.S. Attorney David L. Gappa prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

Source: US FBI

SACRAMENTO, Calif. — Jose Manuel Ontiveros Verdugo, 39, of Stockton, pleaded guilty today to conspiring to possess and distribute methamphetamine, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, between July 2019 and December 2019, Verdugo conspired with his co-defendants and others to distribute methamphetamine both in Stockton and throughout the country. During the investigation, an undercover source bought a total of 11 pounds of methamphetamine and a half pound of heroin from this drug trafficking organization. Law enforcement interdicted the group’s shipments of 50 pounds of methamphetamine destined for Nebraska, as well as a 21‑pound shipment destined for Pennsylvania.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation, Customs and Border Protection, the Drug Enforcement Administration, Homeland Security Investigations, San Joaquin County Probation, the Stockton Police Department, and the Tracy Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Charges are pending against co-defendants Jorge Omar Arredondo Garcia, 46, of Lodi; Gregorio Ontiveros Verdugo, 41, of Morada; Alberto Navarro Zapata, 50, of Stockton; and Wilfredo Reyes, 48, of Manteca. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Verdugo is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 16, 2025. Verdugo faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information, please visit Justice.gov/OCDETF. 

Source: US FBI

LOS ANGELES – A federal grand jury has returned a 43-count indictment charging a music label owner and purported anti-gang activist who is a long-time leader of a South Los Angeles street gang with dozens of felonies, including fraud, robbery, extortion, tax evasion, embezzlement of donations to his charity that receives public money, and running a racketeering conspiracy in which he allegedly murdered an aspiring musician, the Justice Department announced today.

Eugene Henley, Jr., 58, a.k.a. “Big U,” of the Hyde Park neighborhood of Los Angeles, is charged with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, two counts of conspiracy to interfere with commerce by robbery and extortion (Hobbs Act), one count of Hobbs Act robbery, nine counts of attempted Hobbs Act extortion, five counts of Hobbs Act extortion, one count of transportation of an individual in interstate commerce with intent that the individual engage in prostitution (Mann Act), 15 counts of wire fraud, five counts of embezzlement, conversion, and intentional misapplication of funds from an organization receiving federal funds, one count of bank fraud, one count of tax evasion, and two counts of willful failure to file a tax return.

Henley – a long-time member of the Rollin’ 60s Neighborhood Crips street gang – has been in federal custody since March 19 after being charged in a federal criminal complaint. His arraignment is scheduled for April 8 in United States District Court in downtown Los Angeles. He has a detention hearing scheduled for April 10, also in Los Angeles federal court.

Also charged in today’s indictment are:

• Sylvester Robinson, 59, a.k.a. “Vey,” of Northridge;
• Mark Martin, 50, a.k.a. “Bear Claw,” of the Beverlywood area of Los Angeles;
• Termaine Ashley Williams, 42, a.k.a. “Luce Cannon,” of Las Vegas;
• Armani Aflleje, 38, a.k.a. “Mani,” of Koreatown neighborhood of Los Angeles;
• Fredrick Blanton Jr., 43, of South Los Angeles; and
• Tiffany Shanrika Hines, 51, of Yorba Linda.

These defendants are in federal custody and are expected to be arraigned in the coming weeks.

“As the indictment alleges, Mr. Henley led a criminal enterprise whose conduct ranged from murder to sophisticated fraud that included stealing from taxpayers and a charity,” said Acting United States Attorney Joseph McNally. “Eradicating gangs and organized crime is the Department of Justice’s top priority. Today’s charges against the leadership of this criminal outfit will make our neighborhoods in Los Angeles safer.”

According to the indictment returned on Wednesday, from 2010 until March 2025, Henley’s criminal group – identified in court documents as the “Big U Enterprise” – operated as a mafia-like organization that utilized Henley’s stature and long-standing association with the Rollin’ 60s and other street gangs to intimidate businesses and individuals in Los Angeles. Henley is widely regarded as a leader within the Rollin’ 60s and rose to prominence in the street gang during the 1980s.

While the Big U Enterprise at times partnered with the Rollin’ 60s and other criminal elements for mutual benefit, the Big U Enterprise is a distinct and independent criminal enterprise engaged in criminal activity including murder, extortion, robbery, trafficking and exploiting sex workers, fraud, and illegal gambling.

Not only did the enterprise expand its power through violence, fear, and intimidation, but it also used social media platforms, documentaries, podcasts, interviews, and Henley’s reputation and status as an “O.G.” (original gangster) to create fame for – and stoke fear of – the Big U Enterprise, its members, and its associates.

For example, in January 2021, Henley murdered a victim – identified in the indictment as “R.W.” – an aspiring musician signed to Uneek Music, Henley’s music label. Henley shot and killed R.W., who had recorded a defamatory song about Henley. Henley then dragged the victim’s body off Interstate 15 in Las Vegas and left it in a ditch.

Henley also committed other crimes, including fraudulently obtaining a COVID-19 business-relief loan for Uneek Music, which operated at a loss and was ineligible for such relief. He used his anti-gang charity, Developing Options, as a front for fraudulent activities and to insulate other members of the Big U Enterprise from law enforcement suspicion.

Henley further embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account. According to the indictment, Developing Options is primarily funded through the City of Los Angeles’s Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation, portions of which receive federal funding, but also receives donations from prominent sources, including NBA players.

Finally, the indictment alleges that – as part of the racketeering conspiracy charge – that during the early morning hours of March 19, while law enforcement was arresting other members of the enterprise, Henley turned off his cellphones and fled his home. That day, Henley posted to the “Crenshaw Cougars” Instagram account, claiming racial profiling, blaming his co-defendants and opponents for the criminal charges filed against him in a federal criminal complaint, and instructing the public not to associate with his co-defendants and known opponents. Henley eventually surrendered to federal law enforcement without his phones.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Henley, Robinson, Martin would face a statutory maximum sentence of 20 years in federal prison for the racketeering conspiracy count. The bank fraud count is punishable by up to 30 years in federal prison. The Hobbs Act conspiracy, robbery, and extortion and the wire fraud counts each carry a statutory maximum sentence of 20 years in federal prison. The Mann Act count and the theft concerning programs receiving federal funds count each carry a penalty of up to 10 years in federal prison. The tax evasion count carries a statutory maximum sentence of five years in federal prison while the willful failure to pay file a tax return count is punishable by up to one year’s imprisonment.

The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs; IRS Criminal Investigation; the United States Department of Justice Office of Inspector General; the Los Angeles Police Department; and the North Las Vegas Police Department are investigating this matter.

Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case. 

Source: US FBI

LOS ANGELES – A Beverly Hills man was sentenced today to 300 months in federal prison for obtaining nearly $18 million from investors for sham businesses supposedly operating in hemp related industries – all while he was completing a sentence in a prior criminal case.

Mark Roy Anderson, 70, was sentenced by United States District Judge Fernando L. Aenlle-Rocha, who scheduled a restitution hearing for June 4.

At today’s hearing, Judge Aenlle-Rocha said, “The magnitude of the fraud is breathtaking…the [victims’ statements reflect] the depth of the harm. Many have lost their life savings reflecting decades of hard work.” Judge Aenlle-Rocha also described Anderson as “an accomplished and incorrigible con man” and stated that “the public must be protected from him for as long as possible.”

Anderson pleaded guilty in April 2024 to two counts of wire fraud. He has been in federal custody since May 2023.

Anderson engaged in two separate but related schemes that swindled victims, which he committed shortly after his release from federal prison but while serving out the rest of his prison term on home confinement and, later, while on supervised release for a previous fraud conviction.

“The defendant stole more than $18 million from dozens of investors by promising quick returns on their investments into hemp farms and other exotic investments,” said Acting United States Attorney Joseph McNally. “Today’s 25-year sentence takes him off the street so that he cannot harm other victims.”

           Harvest Farm Group

In the first scheme, from June 2020 to April 2021, Anderson tricked investors into providing funding for his company, called Harvest Farm Group, to harvest hemp supposedly being grown on his farm and then process that hemp into medical-grade cannabidiol (CBD) isolate – a chemical found in marijuana – to be sold for a substantial profit.

Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County. He also lied that had already completed successful and profitable harvests of hemp from the farm. He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.

Anderson attempted to maintain a veneer of trustworthiness by taking steps to assure investors Harvest Farm Group was legitimate and he was not the “Mark Roy Anderson” with multiple prior fraud convictions. Anderson concealed that he had been convicted of multiple federal and state felony crimes, including mail fraud, wire fraud, grand theft, forgery, preparing false evidence, and money laundering. He also concealed that he was still serving a criminal sentence and was on supervised release at the time he was soliciting investments.

To stall victim investors from making collection efforts and reporting him to law enforcement, Anderson falsely promised victims he would pay them money from purported sales of products made to Canadian companies, that sales of products had been delayed because of the COVID-19 pandemic, and that he would otherwise return their money.

           Bio Pharma and Verta Bottling

In the second scheme, which ran from April 2021 to May 2023, Anderson deceived investors by soliciting money for Bio Pharma and Verta Bottling, two of his sham companies, by claiming that these businesses successfully manufactured, bottled, and packaged commercial products.

Specifically, Anderson falsely told investors Bio Pharma purportedly manufactured and sold products infused with CBD, including products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and a variety of food products.

Anderson falsely stated that his bottling companies owned and possessed millions of dollars’ worth of assets, including – in Bio Pharma’s case – hemp biomass, CBD isolate, CBD oil, and – in Verta Bottling’s case – manufacturing equipment and an assignable lease for a warehouse to manufacture and sell its products.

Anderson’s other lies to investors included false claims that his bottling companies had at least $10 million in purchase-order contracts from suppliers. He drafted fake legal and business documents, which included fabricated purchase order contracts purporting to show agreements with third party companies to purchase tens of millions of dollars’ worth of products manufactured by the Anderson bottling companies. Anderson also provided victims samples of products purportedly manufactured by his purported bottling companies.

Instead of investing victim funds as he promised, Anderson instead used their money on personal expenses. He has agreed to forfeit his ill-gotten gains from these schemes, including 15 cars – one of them a Ferrari – and real estate in Ojai.

In total, Anderson solicited more than $18.8 million from 45 victims for both schemes, causing victims to lose approximately $17,745,150.

The FBI investigated this matter.

Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.

Source: US FBI

RIVERSIDE, California – Three people were arrested today pursuant to a federal grand jury indictment alleging a scheme to smuggle narcotics into a Riverside County jail by concealing drugs inside of individuals who would purposely get arrested to deliver the contraband.

The three arrested today are among 10 defendants named in the indictment that alleges a scheme to smuggle fentanyl, methamphetamine and heroin into the detention facility. The other defendants charged in the case were already in custody.

“Drug smuggling endangers the lives of inmates and the sheriff’s deputies who are sworn to guard them,” said Acting United States Attorney Joseph McNally. “I thank and commend our partners at the FBI and the Riverside County Sheriff’s Department for the time and attention they have paid to this urgent and important matter.” 

“This investigation highlights the importance of the cooperation and working relationship with our federal partner law enforcement agencies when it comes to public safety,” said Riverside County Sheriff Chad Bianco. “The smuggling of drugs into our jails, particularly with the emergence of fentanyl, has dramatically increased inmate deaths and medical emergencies within our corrections division. I commend the sheriff’s investigators and FBI agents who worked tirelessly on this case to ensure those responsible were identified and brought to justice. We will continue to partner with federal agents in our ongoing efforts to keep Riverside County safe.”

The conspiracy allegedly was led by Andrew Jesus Ayala, 46, of Riverside, and members of a Riverside-based street gang who worked with three in-custody defendants who wanted to obtain narcotics, a group of facilitators on the street and an at least one drug mule who concealed narcotics in a body cavity, the indictment alleges. 

The indictment outlines a scheme that began at an unknown date and continued into late 2022, when intercepted phone calls revealed efforts to smuggle narcotics into a Riverside County custody facility. Members of the drug trafficking ring obtain narcotics and recruited individuals who were willing to smuggle drugs hidden inside their bodies, according to the indictment.

Leaders of the scheme arranged temporary housing for the drug mules before and after they went into custody and delivered narcotics, according to the indictment, which details steps taken by the smugglers to avoid having the drugs detected by X-ray scanners.

In one incident in late 2022, a defendant attempted to smuggle 1¾ ounces of methamphetamine concealed inside his body, but that shipment was intercepted when the contraband was seen on an X-ray machine when the defendant was brought into custody, the indictment alleges.

Members of the conspiracy allegedly discussed smuggling fentanyl-laced pills that could be sold inside the jail for 10 times the street price.

The indictment unsealed today charges all 10 defendants with conspiracy to possess with intent to distribute and distribute methamphetamine, a charge that carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison. Nine of the defendants are additionally charged with possession with intent to distribute methamphetamine, which also carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI and the Riverside County Sheriff’s Department are investigating this matter.

Assistant United States Attorneys Peter Dahlquist and Erin C. Kiss of the Riverside Branch Office are prosecuting this case.

Source: US FBI

LOS ANGELES – A Hollywood Hills man was sentenced today to 41 months in federal prison for paying illegal kickbacks for patient referrals to his addiction treatment facilities located in Orange County.

Casey Mahoney, 48, was sentenced by United States District Judge Josephine L. Staton, who also fined him $240,000.        

At the conclusion of a nine-day trial in September 2024, a jury found Mahoney guilty of one count of conspiracy to solicit, receive, pay, or offer illegal remunerations for patient referrals and seven counts of receiving illegal kickbacks for patient referrals. 

“This defendant illegally profited millions of dollars off of addicts who desperately needed help,” said Acting United States Attorney Joseph McNally. “Bribes and kickbacks compromise the integrity of substance abuse treatment facilities and undermine patient care. As the sentence imposed today demonstrates, those that engage in body brokering will go to federal prison.”

The charges relate to Mahoney’s operation of two addiction treatment facilities: the Huntington Beach-based Healing Path Detox LLC, and the San Juan Capistrano-based Get Real Recovery Inc. 

From at least October 2018 to December 2020, Mahoney paid nearly $2.9 million in illegal kickbacks to so-called “body brokers” who referred patients to Mahoney’s addiction treatment facilities. Those body brokers in turn paid thousands of dollars in cash to patients. Brokered patients sometimes were dropped off at motels in Orange County and introduced to drug dealers. Some of these patients later overdosed and died.

Brokers also arranged for patients to receive drugs to make them eligible for more lucrative levels of care at Mahoney’s facilities. Mahoney paid one broker $140,000 per month for additional patients despite knowing that brokers offered to get some patients high. Mahoney also requested that his employees send brokers to track down former patients with lucrative insurance policies, which he called his “most wanted list.” 

Throughout the scheme, Mahoney concealed the illegal kickbacks by entering into sham contracts with the body brokers which purportedly required fixed payments and prohibited payments based off of the volume or value of the patient referrals.

In reality, Mahoney and the brokers negotiated payments based on the patients’ insurance reimbursements and the number of days Mahoney was able to bill for treatment. 

The FBI and IRS Criminal Investigation investigated this matter. The California Department of Insurance provided valuable assistance.

Assistant United States Attorney Nandor F.R. Kiss of the Orange County Office and Justice Department Trial Attorney Siobhan M. Namazi of the Criminal Division’s Fraud Section prosecuted this case.

Mahoney’s conviction arose out of violations of the Eliminating Kickbacks in Recovery Act (EKRA). EKRA was enacted in October 2018 as part of comprehensive legislation designed to address the opioid crisis and to target the rise in body brokering and substance abuse facility profiteering.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24.7 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit. 

Source: US FBI

LOS ANGELES – A longtime leader of the South Los Angeles-based Rollin’ 60s Neighborhood Crips street gang – who also is an entertainment entrepreneur and a self-proclaimed community activist – has been charged in a federal complaint alleging he ran 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 announced today.

Eugene Henley Jr., 58, a.k.a. “Big U,” of the Hyde Park neighborhood of South Los Angeles, is charged in the complaint with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

Two other alleged members of the criminal enterprise – Sylvester Robinson, 59, a.k.a. “Vey,” of Northridge, and Mark Martin, 50, a.k.a. “Bear Claw,” of the Beverlywood area of Los Angeles – were arrested today on the same criminal complaint in which Henley is charged. 

Robinson, and Martin are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles. Henley is considered a fugitive.

“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. “Eliminating gangs and organized crime is the Department of Justice’s top priority. Today’s charges and arrests target the leadership of this criminal outfit and will make the neighborhoods of Los Angeles safer. I am grateful for the work of our prosecutors and law enforcement partners.”

“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 purportedly 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 root out this kind of criminal behavior plaguing the streets of Los Angeles.”

In total, law enforcement in the last 24 hours arrested 10 Rollin’ 60s members and associates who are charged with various federal crimes, including drug trafficking, racketeering conspiracy, and firearms offenses. Four defendants already were in custody. Law enforcement is seeking the whereabouts of five other defendants – three of whom are expected to be in custody shortly. Two defendants, including Henley, are considered fugitives.

According to an affidavit filed with the criminal complaint filed Monday and unsealed today, from 2010 to the present, Henley’s criminal group – identified in court documents as the “Big U Enterprise” – operated as a mafia-like organization that utilized Henley’s stature and long-standing association with the Rollin’ 60s and other street gangs to intimidate businesses and individuals in Los Angeles. Henley is widely regarded as a leader within the Rollin’ 60s and rose to prominence in the street gang during the 1980s.

While the Big U Enterprise at times partnered with the Rollin’s 60s and other criminal elements for mutual benefit, the Big U Enterprise is a distinct and independent criminal enterprise engaged in criminal activity including murder, extortion, robbery, trafficking and exploiting sex workers, fraud, and illegal gambling.

For example, in January 2021, Henley murdered a victim – identified in the affidavit as “R.W.” – an aspiring musician signed to Uneek Music, Henley and Martin’s music label. Shortly before R.W.’s murder, Henley and Uneek Music paid for R.W. to travel to Las Vegas to record music at a Grammy Award-winning music producer’s studio.

But R.W. did not record at the agreed-upon rate and instead recorded a defamatory song about Henley, causing Henley and Robinson to travel to Las Vegas to confront him. Henley allegedly drove R.W. to North Las Vegas, shot him in the head, and dragged the victim’s body off Interstate 15 into the desert and left it in a ditch. Henley returned to Los Angeles with Robinson and ordered studio workers to leave while his associate removed security surveillance footage from the studio. Henley allegedly later ordered witnesses to not speak with law enforcement about R.W.’s murder.  

Not only did the enterprise expand its power through violence, fear, and intimidation, but it also used social media platforms, documentaries, podcasts, interviews, and Henley’s reputation and status as an “O.G.” (original gangster) to create fame for – and stoke fear of – the Big U Enterprise, its members, and its associates. 

In furtherance of the enterprise, Henley allegedly submitted a fraudulent application for a COVID-19 pandemic relief loan in which he claimed that Uneek Music was operating at a $200,000 profit in 2019 despite operating at a $5,000 loss that year, which should have disqualified it from loan eligibility. 

The enterprise also enriched itself by defrauding donors to nonprofit entities under the control of the Big U Enterprise, including Henley’s charity, Developing Options, a Hyde Park-based nonprofit. Henley marketed Developing Options as giving South Los Angeles youth alternative choices to gang 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. 

Henley allegedly embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account. According to the complaint, Developing Options is primarily funded through the City of Los Angeles’s Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation, portions of which receive federal funding, but also receives donations from prominent sources, including NBA players. 

“The RICO charges against Mr. Henley and his associates reflect a pattern of crimes that runs the gambit from extortion to tax evasion, all under the umbrella of a well-organized criminal organization led by Mr. Henley,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Additionally, Mr. Henley allegedly duped the County of Los Angeles by running a charitable organization that promoted anti-gang solutions while continuing criminal activity that was directly contrary to his charity. IRS-CI is proud to partner with fellow law enforcement organizations to investigate these criminal organizations to protect our communities from further harm.”

“From day one, the Los Angeles Police Department has been proud to stand shoulder to shoulder with the FBI in this critical investigation,” said Los Angeles Police Chief Jim McDonnell. “The invaluable expertise provided by the Operations South Bureau FBI Task Force on the Rollin’ 60’s criminal street gang has played a pivotal role in securing these charges. This is a major step forward in our ongoing fight against gang violence, and it brings hope and relief to a community that has endured far too much. Together, we will continue to protect and serve, working tirelessly to ensure the safety of our neighborhoods.”

Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Henley would face a statutory maximum sentence of life in federal prison. If convicted, Robinson, and Martin would face a statutory maximum sentence of 20 years in federal prison. 

The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs; IRS Criminal Investigation; the United States Department of Justice Office of Inspector General; the Los Angeles Police Department; and the North Las Vegas Police Department are investigating this matter.

Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.