A federal grand jury in Montgomery has indicted the Southern Poverty Law Center (SPLC) on 11 criminal counts, including wire fraud, false statements to a federally insured bank, and conspiracy to commit concealment money laundering, the U.S. Department of Justice announced.
The indictment alleges that between 2014 and 2023, the SPLC secretly funneled more than $3 million in donated funds to individuals associated with violent extremist groups, including the Ku Klux Klan, Aryan Nations, and the National Socialist Party of America, while publicly presenting itself as a organization dedicated to dismantling white supremacy.
The United States Attorney’s Office for the Middle District of Alabama Northern Division also filed two forfeiture actions to recover alleged proceeds of the organization’s fraud scheme.
The FBI investigated the case with assistance from IRS Criminal Investigation (IRS-CI).
“Manufacturing Racism to Justify Its Existence”
“The SPLC is manufacturing racism to justify its existence,” said Acting Attorney General Todd Blanche. “Using donor money to allegedly profit off Klansmen cannot go unchecked. This Department of Justice will hold the SPLC and every other fraudulent organization operating with the same deceptive playbook accountable. No entity is above the law.”
FBI Director Kash Patel added:
“The SPLC allegedly engaged in a massive fraud operation to deceive their donors, enrich themselves, and hide their deceptive operations from the public. They lied to their donors, vowing to dismantle violent extremist groups, and actually turned around and paid the leaders of these very extremist groups – even utilizing the funds to have these groups facilitate the commission of state and federal crimes. That is illegal – and this is an ongoing investigation against all individuals involved.”
The Alleged Scheme
According to the indictment, the SPLC is a non-profit organization headquartered in Montgomery whose website mission during the relevant period was to be a “catalyst for racial justice in the South and beyond, working in partnership with communities to dismantle white supremacy, strengthen intersectional movements, and advance the human rights of all people.”
Prosecutors allege that starting in the 1980s, the SPLC began operating a covert network of individuals who were either associated with violent extremist groups or who had infiltrated such groups at the SPLC’s direction. Unbeknownst to donors, some donated money was allegedly used to fund leaders and organizers of racist groups at the same time the SPLC was denouncing those same groups on its website.
“Donors gave their money believing they were supporting the fight against violent extremism,” said Acting United States Attorney Kevin Davidson. “As alleged, the SPLC instead diverted a portion of those funds to benefit individuals and groups they claimed to oppose. That kind of deception undermines public trust and social cohesion.”
Extremist Groups Named in the Indictment
Between 2014 and 2023, the SPLC allegedly funneled donated funds to individuals associated with multiple violent extremist groups, including:
- Ku Klux Klan
- United Klans of America
- Unite the Right
- National Alliance
- National Socialist Movement
- Aryan Nations affiliated Sadistic Souls Motorcycle Club
- National Socialist Party of America (American Nazi Party)
- American Front
Covert Payment Method
To covertly pay these individuals, the SPLC allegedly opened bank accounts connected to a series of fictitious entities. The covert nature of the accounts allowed the organization to disguise the true nature, source, ownership, and control of the fraudulently obtained donated money paid to the individuals. To keep the scheme going, prosecutors allege, the SPLC made a series of false statements related to the operation of the accounts.
Charges and Potential Penalties
The indictment charges the SPLC with:
- Wire fraud (11 counts)
- False statements to a federally insured bank
- Conspiracy to commit concealment money laundering
A conviction will result in the forfeiture of financial gains from the alleged illegal activities.
Ongoing Investigation
Acting Attorney General Todd Blanche and FBI Director Kash Patel made the announcement in Washington. Patel emphasized that this is an ongoing investigation against all individuals involved.
Disclaimer: The details contained in the indictment are allegations only. The SPLC is presumed innocent unless and until proven guilty in a court of law.
