UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

UNITED STATES OF AMERICA ) UNDER SEAL

)
v. ) No.
)
ROBERT SYLVESTER KELLY, )
also known as “R. Kelly,” ) Violations: Title 18, United States
DERREL MCDAVID, and ) Code, Sections 371, 2251(a),
MILTON BROWN, ) 2252A(a)(2), 2252A(b)(1), and 2422(b)
also known as “June Brown” )

COUNT ONE

The SPECIAL MAY 2019 GRAND JURY charges:

In or around 1998 or 1999, at Chicago, in the Northern District of Illinois,

Eastern Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, did knowingly employ, use, persuade, induce, entice, and coerce a

minor, namely Minor 1, to engage in sexually explicit conduct for the purpose of

producing a visual depiction of such conduct, namely, Video 1, and defendant knew

or had reason to know that such visual depiction would be transported in interstate

or foreign commerce or mailed, or such visual depiction was actually transported in

interstate or foreign commerce or mailed.

In violation of Title 18, United States Code, Section 2251(a).

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 COUNT TWO

The SPECIAL MAY 2019 GRAND JURY further charges:

Between approximately September 26, 1998 and September 25, 1999, at

Chicago, in the Northern District of Illinois, Eastern Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, did knowingly employ, use, persuade, induce, entice, and coerce a

minor, namely Minor 1, to engage in sexually explicit conduct for the purpose of

producing a visual depiction of such conduct, namely, Video 2, and defendant knew

or had reason to know that such visual depiction would be transported in interstate

or foreign commerce or mailed, or such visual depiction was actually transported in

interstate or foreign commerce or mailed.

In violation of Title 18, United States Code, Section 2251(a).

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 COUNT THREE

The SPECIAL MAY 2019 GRAND JURY further charges:

Between approximately September 26, 1998 and September 25, 1999, at

Chicago, in the Northern District of Illinois, Eastern Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, did knowingly employ, use, persuade, induce, entice, and coerce a

minor, namely Minor 1, to engage in sexually explicit conduct for the purpose of

producing a visual depiction of such conduct, namely, Video 3, and defendant knew

or had reason to know that such visual depiction would be transported in interstate

or foreign commerce or mailed, or such visual depiction was actually transported in

interstate or foreign commerce or mailed.

In violation of Title 18, United States Code, Section 2251(a).

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 COUNT FOUR

The SPECIAL MAY 2019 GRAND JURY further charges:

In or around 1998, at Chicago, in the Northern District of Illinois, Eastern

Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, did knowingly employ, use, persuade, induce, entice, and coerce a

minor, namely Minor 1, to engage in sexually explicit conduct for the purpose of

producing a visual depiction of such conduct, namely, Video 4, and defendant knew

or had reason to know that such visual depiction would be transported in interstate

or foreign commerce or mailed, or such visual depiction was actually transported in

interstate or foreign commerce or mailed.

In violation of Title 18, United States Code, Section 2251(a).

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 COUNT FIVE

The SPECIAL MAY 2019 GRAND JURY further charges:

1. At times material to this indictment:

a. Defendant ROBERT SYLVESTER KELLY, also known as “R.

Kelly,” was a resident of Chicago, Illinois, and was a Grammy Award winning

recording artist and record producer. KELLY was the president and manager of

several businesses, each located in Chicago, in the Northern District of Illinois, that

he maintained in furtherance of his music career, including but not limited to Bass

Productions, Ltd. and RSK Enterprises, LLC (the “Kelly Businesses”).

b. From in or around June 1991 until in or around January 2014,

KELLY and/or one or more of the Kelly Businesses employed defendant DERREL

MCDAVID as a business manager. MCDAVID was a principal at Winkler &

McDavid, Ltd, located in Oak Park, Illinois. As a manager for KELLY, MCDAVID

was involved in providing services to KELLY, which services were in part intended

to protect KELLY’s image, reputation, and assets in the face of actual and potential

criminal and civil actions involving individuals who were victims of sexual

misconduct by KELLY.

c. From at least approximately 1997 to at least approximately June

2018, MILTON BROWN, also known as “June Brown,” was employed by KELLY

and/or one or more of the Kelly Businesses.

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 d. Minor 1 met KELLY in or around 1996 or 1997 when Minor 1 was

approximately 12 or 13-years old.

e. Minor 2 met KELLY in or around 1997 when Minor 2 was

approximately 17-years old.

f. Minor 3 met KELLY in or around 1996 when Minor 3 was

approximately 15-years old.

g. Minor 4 met KELLY in or around 1999 when Minor 4 was

approximately 16-years old.

h. Minor 5 met KELLY in or around 1997 or 1998 when Minor 5 was

approximately 13 or 14-years old.

i. KELLY was born in 1967.

j. KELLY engaged in sexual contact and sexual acts, as those terms

are defined in Title 18, United States Code, Section 2246, with Minor 1, Minor 2,

Minor 3, Minor 4, and Minor 5 when they were each under the age of 18.

k. Between in or around 1998 and in or around 2002, KELLY

recorded himself on video engaging in sexual contact and sexual acts with minors,

including Minor 1, Minor 2, Minor 4, and Minor 5.

l. Video 1, Video 2, Video 3, and Video 4 depict KELLY engaged in

sexual contact and sexual acts with Minor 1 when Minor 1 was under the age of 18.

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 m. In approximately April 2000, the Illinois Department of Children

and Family Services began to investigate whether KELLY was sexually abusing

Minor 1.

n. On or about June 5, 2002, a grand jury of the Circuit Court of

Cook County, Illinois, returned an indictment charging KELLY in the case of People

of the State of Illinois v. Robert Kelly, 02 CR 14952 (“Cook County case”), with twenty-

one counts of child pornography, relating to Video 1 and Minor 1. The case was tried

to a jury beginning on May 20, 2008, and on June 13, 2008, KELLY was acquitted of

the charges.

2. Beginning in approximately 2000 and continuing to the date of the

return of this Indictment, at Chicago, in the Northern District of Illinois, and

elsewhere,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,” and

DERREL MCDAVID,

defendants herein, did knowingly conspire with each other, Individual A, and others

known and unknown to the grand jurors, to commit an offense against the United

States, namely, to knowingly alter, destroy, mutilate, conceal, cover up, falsify, and

make a false entry in any record, document, and tangible object, with the intent to

impede, obstruct, and influence the investigation and proper administration of any

matter within the jurisdiction of any department or agency of the United States, and

in relation to and contemplation of such matter or case, in violation of Title 18, United

States Code, Section 1519.

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 3. It was part of the conspiracy that KELLY, MCDAVID, and others knew

of KELLY’s sexual contact and sexual acts with minors and knew that KELLY

recorded himself engaged in sexual contact and sexual acts with minors on videotape.

4. It was further part of the conspiracy that, in approximately 2001,

KELLY and MCDAVID learned that multiple videos depicting KELLY engaged in

sexual contact and sexual acts with minors were missing from KELLY’s collection of

such videos.

5. It was further part of the conspiracy that, in order to conceal and cover

up the existence of videos from investigators, KELLY, MCDAVID, and others agreed

to collect the missing videos that depicted KELLY engaged in sexual contact and

sexual acts with minors.

6. It was further part of the conspiracy that KELLY, MCDAVID, and

others agreed to pay money and caused money to be paid on KELLY’s behalf to

victims, witnesses, and others to ensure that they would not cooperate with law

enforcement and would conceal and cover up evidence, including videos, relating to

KELLY’s sexual contact and sexual acts with minors, such as the following:

a. Between approximately 2001 and approximately 2009, KELLY,

MCDAVID, Individual A, and others caused Individual B to be paid hundreds of

thousands of dollars for obtaining and returning multiple videos that they knew

depicted KELLY engaged in sexual contact and sexual acts with a minor.

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 b. In approximately early 2007, KELLY and MCDAVID agreed to

pay Minor 2 approximately $250,000 to return a videotape that they knew depicted

KELLY engaged in sexual contact and sexual acts with Minor 1 and Minor 2.

c. In approximately 2007, KELLY and MCDAVID paid Minor 2 and

Individual C each approximately $100,000 in exchange for their efforts to return to

KELLY videotapes that they knew depicted KELLY engaged in sexual contact and

sexual acts with Minor 1 and Minor 2.

d. As a condition of being paid money for returning videotapes that

depicted KELLY engaged in sexual contact and sexual acts with minors, KELLY and

MCDAVID directed Minor 2, Individual B, and Individual C to take polygraph

examinations regarding whether they had returned all copies of such videotapes.

e. In approximately June 2008, after learning that Individual B

planned to announce at a press conference that he had recovered videos depicting

KELLY engaged in sexual contact and sexual acts with minors, KELLY, MCDAVID,

and others paid Individual B approximately $170,000 to cancel the press conference.

7. It was further part of the conspiracy that KELLY, MCDAVID, and

others agreed to intimidate, threaten, pressure, persuade, and attempt to persuade,

other individuals, including but not limited to Minor 1, Minor 1’s parents, Minor 2,

and Minor 5 to falsify and make a false entry in a record, document, and tangible

object related to KELLY’s sexual contact and sexual acts with minors, such as the

following:

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 a. In approximately December 2000, pursuant to instructions that

Minor 1 received from KELLY, Minor 1 falsified and caused a false entry to be made

in a police report, when Minor 1 denied to law enforcement officers that KELLY

engaged in a sexual relationship with Minor 1.

b. In approximately May 2002, MCDAVID instructed Minor 1’s

father to provide knowingly false testimony to the Cook County grand jury

investigating KELLY’s sexual relationship with Minor 1. MCDAVID instructed

Minor 1’s father to deny that Video 1 depicted Minor 1 engaged in sexual acts with

KELLY, when MCDAVID knew that Video 1 did depict Minor 1 engaged in sexual

acts with KELLY. As instructed, Minor 1’s father falsely denied to the grand jurors

that Video 1 depicted KELLY and Minor 1, thus creating a false record and a false

entry in a record, document, and tangible object.

c. In approximately May 2002, KELLY persuaded Minor 1 to

provide knowingly false testimony to the Cook County grand jury investigating

KELLY’s sexual relationship with Minor 1. Minor 1 falsely denied to the grand jurors

that KELLY engaged in a sexual relationship with Minor 1 and that Minor 1 was not

depicted on Video 1, thus creating a false record and a false entry in a record,

document, and tangible object.

d. In approximately May 2002, KELLY attempted to persuade

Minor 5 to provide knowingly false testimony to the Cook County grand jury

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investigating KELLY’s sexual relationship with Minor 1, in that KELLY instructed

Minor 5 to testify falsely that she did not recognize Minor 1 on Video 1.

e. On or about July 26, 2007, KELLY and MCDAVID directed that

Minor 2 meet with a lawyer and that Minor 2 falsely deny that Minor 2 and KELLY

ever engaged in sexual acts together with Minor 1 and Minor 2, when KELLY and

MCDAVID knew that KELLY had engaged in sexual acts together with Minor 1 and

Minor 2. As KELLY and MCDAVID intended, a false record, document, and tangible

object was prepared based upon Minor 2’s false statements.

8. It was further part of the conspiracy that KELLY, MCDAVID, and

others agreed to intimidate, threaten, pressure, persuade, and provide benefits and

money to victims, victims’ family members, witnesses, and others to ensure that they

would destroy, conceal, cover up, falsify, and make a false entry in a record, document,

and tangible object, and continue to abide by previous false statements and entries

in such items, relating to KELLY’s sexual contact and sexual acts with minors, such

as the following:

a. In approximately January and February 2002, KELLY and

MCDAVID caused Minor 1 and Minor 1’s parents to travel to foreign countries to

make them unavailable to law enforcement investigating Minor 1’s sexual

relationship with KELLY and Video 1.

b. From at least approximately 2000 to approximately 2015, KELLY

and MCDAVID made payments to and bought gifts for Minor 1 and Minor 1’s parents

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with the intent to persuade and induce Minor 1 and Minor 1’s parents to conceal,

cover up, falsify, and make a false entry in any record, document, and tangible object

about KELLY’s sexual relationship with Minor 1, and to continue to abide by previous

false statements and entries in such items, including the existence of multiple videos

depicting KELLY engaging in sexual contact and sexual acts with Minor 1.

c. Between approximately January 2014 and approximately

October 2015, KELLY caused monthly payments to be made to Minor 1 via the Kelly

Businesses, many of which contained “Settlement” in the transaction line or

something similar. KELLY made these payments to ensure that Minor 1 continued

to abide by her prior false statements regarding KELLY’s sexual relationship with

Minor 1 and to ensure that Minor 1 continued to conceal and cover up the existence

of multiple videos depicting KELLY engaged in sexual contact and sexual acts with

Minor 1.

d. In approximately 2014 and 2015, MCDAVID received payments

from KELLY relating to services he provided to protect KELLY’s image, reputation,

and assets in the face of actual and potential criminal and civil actions by individuals

who were victims of sexual misconduct by KELLY, including services that MCDAVID

provided to falsify and create a false entry in a record, document, and tangible object,

and services that MCDAVID provided to conceal and cover up evidence of KELLY’s

sexual contact and sexual acts with minors.

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 9. It was further part of the conspiracy that KELLY used physical abuse,

violence, threats of violence, blackmail, and other controlling behaviors against

victims so that KELLY could maintain control over them, prevent them from

providing evidence to law enforcement, and persuade them to continue to abide by

prior false statements relating to KELLY’s sexual contact and sexual acts with

minors and videos of such conduct.

10. It was further part of the conspiracy that KELLY, MCDAVID,

Individual A and others concealed and hid, and caused to be concealed and hidden,

the existence of, and acts done in furtherance of, the conspiracy.

OVERT ACTS

11. In furtherance of the conspiracy and to accomplish the objectives of the

conspiracy, defendants committed one or more overt acts in the Northern District of

Illinois, Eastern Division, and elsewhere, which overt acts included but were not

limited to the following:

a. In approximately March or April 2007, MCDAVID, on KELLY’s

behalf, received from Minor 2 and Individual C a videotape that MCDAVID and

KELLY knew depicted KELLY engaged in sexual contact and sexual acts with Minor

1 and Minor 2.

b. In approximately March or April 2007, MCDAVID, on KELLY’s

behalf, brought Minor 2 and Individual C to a polygraph examiner and directed that

Minor 2 and Individual C take polygraph examinations regarding whether there were

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additional copies of the videotape that Minor 2 and Individual C had returned

depicting KELLY engaged in sexual contact and sexual acts with Minor 1 and Minor

2.

c. In approximately September 2008, KELLY caused a Bass

Productions, Ltd. check, signed by MCDAVID, to be issued to Minor 1’s father,

payable in the amount of $30,000.

d. In approximately August 2013, KELLY caused Bass Productions,

Ltd. to transfer title of a GMC Yukon Denali to Minor 1.

e. In approximately September 2014, KELLY caused a wire transfer

in the amount of $80,000 to be paid to MCDAVID through his firm, Winkler &

McDavid. Ltd.

f. In approximately October 2014, KELLY caused a RSK

Enterprises LLC check to be issued to Minor 1, payable in the amount of $1,150, with

the notation “Personal – RK” in the memo line.

g. In approximately October 2015, KELLY caused a wire payment

to be made from RSK Enterprises LLC to Minor 1, payable in the amount of $1,150,

with the notation “Settlement Payment,” although the payment was not made

pursuant to a settlement with KELLY.

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 h. In approximately December 2015, KELLY caused a wire payment

in the amount of $100,000 to be made from RSK Enterprises LLC to agents of

MCDAVID on MCDAVID’s behalf.

All in violation of Title 18, United States Code, Section 371.

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 COUNT SIX

The SPECIAL MAY 2019 GRAND JURY further charges:

1. Paragraphs 1, 3, 4, 5, 6, 7(e), and 8(d) of Count Five are incorporated

here.

2. Beginning in or around August 2001 and continuing to in or around

April 2007, at Chicago, in the Northern District of Illinois, Eastern Division, and

elsewhere,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

DERREL MCDAVID, and
MILTON BROWN, also known as “June Brown,”

defendants herein, did knowingly conspire with each other, Individual A, Individual

B, and others known and unknown to the grand jurors, to receive child pornography,

as defined in Title 18, United States Code, Section 2256(8)(A), namely, Video 2, Video

3, and Video 4, that has been mailed, and shipped and transported in interstate and

foreign commerce by any means;

In violation of Title 18, United States Code, Sections 2252A(a)(2) and (b)(1).

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 COUNT SEVEN

The SPECIAL MAY 2019 GRAND JURY further charges:

In or around 2001 or 2002, at Chicago, in the Northern District of Illinois,

Eastern Division, and elsewhere,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,” and

DERREL MCDAVID,

defendants herein, did knowingly receive child pornography, as defined in Title 18,

United States Code, Section 2256(8)(A), namely, Video 2 and Video 3, that has been

mailed, and shipped and transported in interstate and foreign commerce by any

means;

In violation of Title 18, United States Code, Sections 2252A(a)(2) and 2.

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 COUNT EIGHT

The SPECIAL MAY 2019 GRAND JURY further charges:

In or around March or April 2007, at Chicago, in the Northern District of

Illinois, Eastern Division, and elsewhere,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,” and

DERREL MCDAVID,

defendants herein, did knowingly receive child pornography, as defined in Title 18,

United States Code, Section 2256(8)(A), namely, Video 4, that has been mailed, and

shipped and transported in interstate and foreign commerce by any means;

In violation of Title 18, United States Code, Sections 2252A(a)(2) and 2.

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 COUNT NINE

The SPECIAL MAY 2019 GRAND JURY further charges:

In or around 1999, at Chicago, in the Northern District of Illinois, Eastern

Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, using the mail or any facility and means of interstate and foreign

commerce, did knowingly persuade, induce, entice, and coerce any individual, namely

Minor 1, who had not attained the age of 18 years, to engage in sexual activity for

which any person can be charged with a criminal offense, namely, aggravated

criminal sexual abuse, in violation of Title 720, Illinois Compiled Statutes, Section

5/12-16(d).

In violation of Title 18, United States Code, Section 2422(b).

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 COUNT TEN

The SPECIAL MAY 2019 GRAND JURY further charges:

Between approximately late 1997 and June 10, 1998, at Chicago, in the

Northern District of Illinois, Eastern Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, using the mail or any facility and means of interstate and foreign

commerce, did knowingly persuade, induce, entice, and coerce any individual, namely

Minor 2, who had not attained the age of 18 years, to engage in sexual activity for

which any person can be charged with a criminal offense, namely, sexual exploitation

of a child, in violation of Title 18, United States Code, Section 2251(a).

In violation of Title 18, United States Code, Section 2422(b).

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 COUNT ELEVEN

The SPECIAL MAY 2019 GRAND JURY further charges:

In or around summer 1996, at Chicago, in the Northern District of Illinois,

Eastern Division, and elsewhere,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, using the mail or any facility and means of interstate and foreign

commerce, did knowingly persuade, induce, entice, and coerce any individual, namely

Minor 3, who had not attained the age of 18 years, to engage in sexual activity for

which any person can be charged with a criminal offense, namely, aggravated

criminal sexual abuse, in violation of Title 720, Illinois Compiled Statutes, Section

5/12-16(d).

In violation of Title 18, United States Code, Section 2422(b).

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 COUNT TWELVE

The SPECIAL MAY 2019 GRAND JURY further charges:

Between approximately 1999 and August 1, 2000, at Chicago, in the Northern

District of Illinois, Eastern Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, using the mail or any facility and means of interstate and foreign

commerce, did knowingly persuade, induce, entice, and coerce any individual, namely

Minor 4, who had not attained the age of 18 years, to engage in sexual activity for

which any person can be charged with a criminal offense, namely, sexual exploitation

of a child, in violation of Title 18, United States Code, Section 2251(a).

In violation of Title 18, United States Code, Section 2422(b).

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 COUNT THIRTEEN

The SPECIAL MAY 2019 GRAND JURY further charges:

In or around 1997 or 1998, at Chicago, in the Northern District of Illinois,

Eastern Division,

ROBERT SYLVESTER KELLY, also known as “R. Kelly,”

defendant herein, using the mail or any facility and means of interstate and foreign

commerce, did knowingly persuade, induce, entice, and coerce any individual, namely

Minor 5, who had not attained the age of 18 years, to engage in sexual activity for

which any person can be charged with a criminal offense, namely, aggravated

criminal sexual abuse, in violation of Title 720, Illinois Compiled Statutes, Section

5/12-16(d).

In violation of Title 18, United States Code, Section 2422(b).

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 FORFEITURE ALLEGATION

The SPECIAL MAY 2019 GRAND JURY further alleges:

1. Upon conviction of an offense in violation of Title 18, United States Code,

Sections 2251, 2252A, and 2422 as set forth in this Indictment, defendant shall forfeit

to the United States of America any matter which contains visual depictions

described in Title 18, United States Code, Section 2252A; any property constituting

and traceable to gross profits and other proceeds obtained from such offense; and any

property used and intended to be used to commit and to promote the commission of

such offense, and any property traceable to such property, as provided by Title 18,

United States Code, Section 2253(a).

2. Upon conviction of an offense in violation of Title 18, United States Code,

Section 371, as set forth in this Indictment, defendant shall forfeit to the United

States of America any property which constitutes and is derived from proceeds

traceable to the offense, as provided in Title 18, United States Code, Section

981(a)(1)(C) and Title 28, United States Code, Section 2461(c).

3. The property to be forfeited includes, but is not limited to a personal

money judgment in the amount of at least approximately $1,554,748.00.

4. If any of the property described above, as a result of any act or omission

by a defendant: cannot be located upon the exercise of due diligence; has been

transferred or sold to, or deposited with, a third party; has been placed beyond the

jurisdiction of the Court; has been substantially diminished in value; or has been

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commingled with other property which cannot be divided without difficulty; the

United States of America shall be entitled to forfeiture of substitute property, as

provided by Title 21, United States Code Section 853(p).

A TRUE BILL:

______________________________
FOREPERSON

_____________________________________
UNITED STATES ATTORNEY

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