Chicago Tribune (Sunday)

Secret grand jury proceeding­s in R. Kelly Chicago case revealed

Filings shed light on prosecutor­s’ actions vs. singer

- By Jason Meisner and Megan Crepeau jmeisner@chicago tribune.com mcrepeau@chicago tribune.com

A recent motion by attorneys for R. Kelly’s former business manager, Derrell McDavid, did more than just seek government reimbursem­ent of McDavid’s legal fees — it also lifted the curtain on secretive grand jury proceeding­s that led to the bombshell indictment in the first place.

In making the unusual argument that prosecutor­s should be on the hook for $850,000 in the wake of McDavid’s acquittal, attorney Beau Brindley attached transcript­s of grand jury meetings and testimony that were supposed to remain under wraps essentiall­y forever.

The transcript­s — which were public for several hours Tuesday before prosecutor­s asked the court clerk to seal them — detail a crucial February 2020 meeting of the special grand jury where prosecutor­s were seeking the return of a supersedin­g indictment against Kelly, McDavid, and a third associate, Milton “June” Brown.

While grand jury proceeding­s sometimes come out in open court in snippets of transcript­s to buttress other testimony or impeach a witness on the stand, the filings in the R. Kelly case offered a rare glimpse of how prosecutor­s go about securing an indictment in a high-profile case.

Here are some of the revelation­s in the filings:

The grand jurors were wondering about something that later became a major issue in the trial: Where was the alleged tape at the heart of the conspiracy charges?

Near the beginning of the Feb. 13, 2020, session, a grand juror asked Assistant U.S. Attorney Angel Krull, who was heading up the investigat­ion, “Has the missing porn tape ever showed up? There was like, a bunch.”

The reference was to what prosecutor­s called “Video 4,” a tape Kelly purportedl­y made at his home on West George Street in the late 1990s showing him having illegal sexual contact with his underage goddaughte­r and a young woman, Lisa Van Allen.

Van Allen testified that she stole the tape from Kelly’s collection and sent it to her friend, Keith Murrell, in Kansas City. The conspiracy charges alleged Kelly’s legal team later hired another man, T-shirt merchandis­er Charles Freeman, to get the tape back.

Krull told the grand jury panel the tape still “has not surfaced,” though four witnesses had testified to them about its existence and the alleged plot by Kelly’s team to get it back.

“I mean, the reason why we don’t have it is that you heard testimony about how Mr. Keith Murrell returned that tape to Mr. Kelly’s associates and was polygraphe­d and paid $100,000,” Krull said, according to the transcript. “So the reason we don’t have that tape is because it was returned to Mr. Kelly.”

The tape’s absence loomed large at trial, where defense attorneys questioned whether it existed at all, and characteri­zed Van Allen, Murrell, and Freeman as liars and extortioni­sts.

The trial jury ultimately acquitted all three men of the conspiracy and obstructio­n counts.

Prosecutor­s at one point showed grand jurors evidence about Kelly’s illegal marriage to his 15-yearold protegee Aaliyah

. As Krull presented the case to grand jurors, one of them asked why they weren’t charging Kelly with abusing Aaliyah.

“I don’t mean this in a disrespect­ful way or anything,” the juror said, according to the transcript. “When you first brought us evidence, you showed us the marriage license with him and Aaliyah … so I was wondering why she wouldn’t be part of it if he married her when she was a minor and abused her?”

Kelly married Aaliyah in 1994, Krull explained, but the law under which they were charging Kelly — enticement of a minor to engage in sexual activity — didn’t exist until 1996. The marriage was quietly annulled, and the Aaliyah was killed in a plane crash in 2001.

Still unclear is why Chicago grand jurors were shown evidence related to Aaliyah if prosecutor­s ended up not charging him with any conduct related to her. During the trial, U.S. District Judge Harry Leinenwebe­r barred any mention of their relationsh­ip, while defense attorneys were allowed to paint a picture of Aaliyah’s uncle, Barry Hankerson, as a vindictive control freak out to destroy Kelly’s career.

Kelly did face charges related to the illegal marriage at his 2021 trial in Brooklyn’s federal court, where jurors found Kelly guilty of a wide-ranging racketeeri­ng scheme. The judge in that case sentenced the singer in June to 30 years in prison.

Prosecutor­s were hopeful that private investigat­or Jack Palladino would come in to testify or give a statement to the grand jury — but he was killed during a botched robbery outside his home in San Francisco.

At trial, Freeman told jurors a wildly memorable tale about how Palladino, a famous private eye based in California, was part of a scheme by McDavid and other Kelly associates to pay him up to a million dollars to hunt down Video 4, which he said had surfaced with some people in Atlanta.

Among the evidence backing up Freeman’s story was a written contract he and Palladino signed in August 2001 promising $100,000 plus expenses for Freeman if he recovered a “performanc­e tape” of Kelly’s.

Krull told the grand jury in 2020 the contract had only recently been obtained after subpoenain­g Palladino, who was also an attorney, and working through “all the special rules” that apply when an attorney is asked to turn over records.

Krull said they were still following up on leads from the documents and conducting interviews, and that the grand jury might hear more testimony about them in the future, including from Palladino himself.

“We are going through his records and determinin­g whether or not he will come and sit for an interview, and if so then we’ll determine whether he will come and testify,” Krull said, according to the transcript. “So that’s a possibilit­y.”

But that apparently never happened. On Jan. 26, 2021, Palladino, 76, fell and hit his head on the sidewalk while tussling with would-be robbers outside his home in San Francisco’s Haight-Ashbury neighborho­od and never regained consciousn­ess. Two men were arrested and are awaiting trial on murder charges.

In the end, Palladino’s records may have actually turned out to be more of a help for the defense than a smoking gun for prosecutor­s.

At trial, McDavid’s attorneys were able to show the jury some of Palladino’s memos labeling Freeman’s contact with the team “Kelly extortion,” as well as other business records appearing to show the private eye traveled alone to Kansas City to meet with Freeman, contradict­ing Freeman’s testimony that McDavid was there too.

Prosecutor­s learned only after indicting Kelly that one of his accusers was not actually underage during her first sexual encounter with the singer.

Van Allen, who was a key prosecutio­n witness at the trial, told the federal grand jury in 2019 that she was 17 when she met Kelly at a music video shoot — the same claim she had made repeatedly in previous years, including as a prosecutio­n witness in Kelly’s 2008 Cook County trial. She became “Minor 2” in the initial Chicago federal indictment, which charged Kelly with abusing her.

But after that, Krull told jurors in 2020, a federal investigat­or tried to nail down the date of the video shoot. It was apparently the first time any authoritie­s attempted to independen­tly verify Van Allen’s age at the time she met Kelly. The person who owned the house where the video was shot still had records of the rental, which showed it was filmed just after Van Allen had turned 18, Krull told grand jurors.

So “Minor 2” was dropped from the indictment, becoming instead “Individual D” — a cooperatin­g witness. But Krull told the panel Van Allen “is very important still to the indictment with respect to the obstructio­n of justice allegation­s.”

Van Allen testified at length during Kelly’s trial, saying she had been mistaken when she said she was 17. Defense attorneys seized on the discrepanc­y to paint her as a liar and opportunis­t. In the end, jurors acquitted Kelly and his co-defendants on the charges related to Van Allen’s testimony.

The minor victim who was added to the supersedin­g indictment had told the grand jury Kelly first sexually abused her in New York. But that never came out at trial.

At the grand jury meeting, Krull said they were adding a new victim to the charges who was a schoolmate of Kelly’s goddaughte­r and was also alleged to have been sexually abused by the singer multiple times when she was a minor.

“One of them in particular, the very first one, happened on a trip to New York City that she described an encounter happened in New York City at a hotel there,” Krull said in her presentati­on to the grand jury. “Then she described many other encounters with Mr. Kelly, all happening when she was under 18. And so because of that we are adding her to the indictment.”

Krull said the abuse continued after the victim, who at trial went by the pseudonym “Brittany,” became legally an adult, “but for purposes of this charge we’re only focusing on the conduct that happened to her when she was under 18.”

At trial, prosecutor­s promised jurors that they’d hear directly from Brittany. But she was never called as a witness for reasons unexplaine­d.

Instead, jurors were asked to rely on testimony from other witnesses, including Jane, who said Kelly engaged her in threesomes with Brittany between five and 10 times. Another victim, Pauline, told the jury that Kelly also had threesomes with her and Brittany when Pauline was 15 or 16, and said Brittany is about a year older than her.

Pauline said that when she was 20, she called Kelly’s business posing as Brittany and threatened to go public about some wrongdoing if he didn’t give her money.

“Well, he called it extortion,” Pauline told the jury. “I called it ‘don’t play with me.’ “

But Brittany’s absence did not go unnoticed by the jury, which acquitted Kelly of the enticement counts related to her accusation­s.

 ?? ANTONIO PEREZ/CHICAGO TRIBUNE ?? R. Kelly’s business manager and co-defendant, Derrel McDavid, center, arrives at the Dirksen U.S. Courthouse on Sept. 7.
ANTONIO PEREZ/CHICAGO TRIBUNE R. Kelly’s business manager and co-defendant, Derrel McDavid, center, arrives at the Dirksen U.S. Courthouse on Sept. 7.
 ?? MICHAEL A. SCHWARZ/FOR THE WASHINGTON POST ?? Lisa Van Allen, who was involved with singer R. Kelly, in Atlanta in 2018.
MICHAEL A. SCHWARZ/FOR THE WASHINGTON POST Lisa Van Allen, who was involved with singer R. Kelly, in Atlanta in 2018.
 ?? CHRIS DELMAS/GETTY-AFP ?? Aaliyah attends the 2001 MTV Movie Awards in Los Angeles in June 2001.
CHRIS DELMAS/GETTY-AFP Aaliyah attends the 2001 MTV Movie Awards in Los Angeles in June 2001.

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