Southern Poverty Law Center Indicted on 11 Counts in Alleged $3M Fraud Scheme Involving Extremist Groups

A grand jury in Alabama returned an indictment on April 21 charging the Southern Poverty Law Center with 11 counts, including wire fraud, false statements to a federally insured bank, and conspiracy to commit money laundering.

According to the U.S. Department of Justice, the SPLC allegedly funneled more than $3 million in donated funds to individuals associated with various violent extremist groups, including the Ku Klux Klan and the United Klans of America.

The United States Attorney’s Office for the Middle District of Alabama filed two forfeiture actions to recover alleged proceeds from the organization’s fraud scheme. The Federal Bureau of Investigation investigated the case with assistance from Internal Revenue Service Criminal Investigation.

“The SPLC is manufacturing racism to justify its existence,” said Todd Blanche. “Using donor money to allegedly profit off Klansmen cannot go unchecked. This Department of Justice will hold the Southern Poverty Law Center and every other fraudulent organization operating with the same deceptive playbook accountable. No entity is above the law.”

“The SPLC allegedly engaged in a massive fraud operation to deceive their donors, enrich themselves, and hide their deceptive operations from the public,” said FBI Director Kash Patel. “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 SPLC is a nonprofit organization headquartered in Montgomery, Alabama. According to its website during the relevant period, its mission was to serve as 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.”

According to the indictment, beginning in the 1980s, the SPLC allegedly operated a covert network of individuals either associated with violent extremist groups or tasked with infiltrating them at the SPLC’s direction. Prosecutors claim that, without donors’ knowledge, a portion of donated funds was used to financially support leaders and organizers of these groups—even as the SPLC publicly denounced them.

“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.”

• Unite the Right

• National Alliance

• National Socialist Movement

• Aryan Nations-affiliated Sadistic Souls Motorcycle Club

• National Socialist Party of America (American N*zi Party)

• American Front

According to the indictment, the alleged scheme aimed to obtain donations through materially false representations and omissions about how funds would be used.

To facilitate payments, the SPLC allegedly opened bank accounts tied to a network of fictitious entities. These accounts were used to conceal the true nature, source, ownership, and control of the funds. Prosecutors say the organization made a series of false statements to maintain the operation of these accounts.

If convicted, the SPLC would face forfeiture of financial gains linked to the alleged illegal activity.

Acting Attorney General Todd Blanche and FBI Director Kash Patel announced the charges in Washington.

The details contained in the civil forfeiture complaint are allegations only, the DOJ said.