The Department of Justice (DOJ) announced an expanded indictment against the Southern Poverty Law Center (SPLC) last month, alleging that the nonprofit organization defrauded donors by secretly compensating informants linked to extremist groups, including the Ku Klux Klan. A federal grand jury in the Middle District of Alabama returned an 11-count indictment in April, which includes charges of wire fraud, making false statements to a federally insured bank, and conspiracy to commit concealment money laundering.
The updated indictment maintains the original charges while detailing further alleged misconduct. The DOJ claims that the SPLC funneled over $3 million in donor funds from 2014 to 2023 to individuals associated with extremist organizations. The indictment states that the SPLC's informants promoted racist groups while the organization publicly denounced them.
Prosecutors allege that the SPLC opened bank accounts linked to fictitious entities to hide donor funds that were allegedly directed to confidential sources. The indictment also claims that the SPLC has operated a covert informant network since the 1980s, paying these sources in a clandestine manner.
One SPLC employee is accused of encouraging informants to remain involved with extremist groups and offering them salaries. The indictment alleges that donor funds were used to reimburse expenses related to Ku Klux Klan activities, including cross-burning events.
In response to the allegations, SPLC attorney Abbe Lowell stated that the indictment attempts to address flaws in the initial charges and maintains that the SPLC did not mislead its donors or banks. He emphasized that the SPLC's informant program aimed to prevent violence and save lives.
The superseding indictment also notes that the SPLC's reported revenue increased from approximately $38.7 million in 2010 to over $129 million in 2023, marking a 233% increase, with net assets growing from about $238 million to nearly $787 million during the same period. Acting Attorney General Todd Blanche stated that the SPLC's actions contradicted its claims to donors, alleging that the organization funded extremism rather than dismantling it.
