Justice Department Charges Southern Poverty Law Center with Fraud

The Justice Department has charged the Southern Poverty Law Center with 11 federal crimes. This includes allegations of sending $3 million to people connected with hate groups.
By Newsroom | Legal, Civil Rights |

MONTGOMERY, AL – The U.S. Department of Justice has leveled an 11-count federal indictment against the Southern Poverty Law Center (SPLC), alleging a scheme to defraud donors by secretly funneling millions of dollars to individuals connected with extremist groups, including the Ku Klux Klan and the Nationalist Socialist Party of America.

The indictment, unsealed Tuesday, charges the prominent civil rights organization with six counts of wire fraud, four counts of bank fraud, and one count of conspiracy to commit money laundering. Prosecutors claim the SPLC, a nonprofit known for tracking hate groups, used fictitious entities and covert bank accounts between 2014 and 2023 to disguise payments totaling at least $3 million to eight individuals associated with racist and white supremacist organizations.

Allegations Detail Payments to Extremist Figures

According to Acting U.S. Attorney General Todd Blanche, the SPLC’s alleged actions involved paying leaders and organizers of groups it publicly denounced. One individual, identified as a leader involved in the 2017 "Unite the Right" protest in Charlottesville, Virginia, reportedly received approximately $270,000 over an eight-year period. FBI Director Kash Patel indicated that while the SPLC is the first organization targeted in this manner, further indictments may follow.

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The Justice Department asserts that the SPLC failed to disclose the true nature of these payments to its donors, thereby misleading them about how their contributions were being used. The indictment specifically notes that the funds were allegedly paid to individuals, not directly to the hate groups themselves.

SPLC Cites Informant Program for Safety

The indictment arrives shortly after the SPLC disclosed its awareness of a criminal investigation into its now-disbanded informant program. The organization has maintained that the program's secrecy was a necessary measure to protect the safety of informants gathering intelligence on extremist activities. The SPLC has denied the allegations laid out in the federal indictment.

Background of Scrutiny and Program Changes

The SPLC has long been a significant voice in monitoring and cataloging hate groups across the United States. However, the organization has also faced criticism, particularly from allies of former President Trump. Patel’s departure from any professional ties with the SPLC last year, following years of collaboration on hate crime investigations, precedes this federal action. The Trump administration had previously shown a cooling of relations with the civil rights group. The indictment, filed in an Alabama federal court, suggests a significant shift in the federal government's posture towards organizations engaged in such informant programs.

Read More: SPLC Charged with Fraud Over Informant Payments

Frequently Asked Questions

Q: What is the Southern Poverty Law Center accused of by the Justice Department?
The Justice Department has indicted the Southern Poverty Law Center on 11 federal counts. These include wire fraud, bank fraud, and conspiracy to commit money laundering. Prosecutors say the SPLC secretly sent about $3 million to people linked to extremist groups between 2014 and 2023.
Q: How did the SPLC allegedly funnel money to extremist groups?
Prosecutors claim the SPLC used fake companies and hidden bank accounts. They allegedly paid leaders and organizers of groups the SPLC publicly criticizes. One person linked to the 2017 Charlottesville protest reportedly got around $270,000 over eight years.
Q: What does the Southern Poverty Law Center say about these charges?
The SPLC has denied the allegations in the federal indictment. The organization stated that the payments were part of a now-closed informant program. They claim the secrecy was needed to protect informants gathering information on extremist activities.
Q: Why is this indictment significant?
This is the first time the Justice Department has targeted an organization like the SPLC in this way. The indictment suggests a new approach by the federal government towards groups that run such informant programs. More indictments could follow, according to the FBI.