US files fraud charges against Southern Poverty Law Center over informant payments
The US Department of Justice has indicted the Southern Poverty Law Center (SPLC), a prominent civil rights organization, on charges of wire fraud, bank fraud, and conspiracy to commit money laundering. The indictment, filed in federal court in Alabama, alleges that the group secretly used donor money to pay informants inside white supremacist and neo-Nazi organizations, including the Ku Klux Klan (KKK).
Acting Attorney General Todd Blanche announced the charges on Tuesday, accusing the SPLC of "manufacturing racism to justify its existence." According to prosecutors, the SPLC raised millions of dollars from donors under the pretense that the funds would be used to dismantle extremist groups, but instead funneled at least $3 million between 2014 and 2023 to individuals affiliated with groups such as the KKK, the United Klans of America, the National Socialist Party of America, and the National Socialist Movement. The money was allegedly routed through two bank accounts and loaded onto prepaid cards before being given to the informants.
The SPLC, which pleaded not guilty on Thursday, has vigorously denied the allegations. In a statement, interim president and CEO Bryan Fair said the charges are "provably wrong" and based on "inaccurate facts and a misapplication of law." Fair argued that the informant program was successful in preventing threats and attacks, stopping criminal activity, and gathering information that was shared with law enforcement. "There is no question that the information the SPLC shared with law enforcement saved lives," he said.
The indictment is the latest chapter in a long-running feud between the SPLC and the Trump administration. In October, the FBI ended its relationship with the group, accusing it of being a "partisan smear machine." Some Republicans have also criticized the SPLC for labeling conservative organizations such as Turning Point USA, the Family Research Council, and Moms for Liberty as hate groups. The SPLC has maintained that its work is focused on combating white supremacy and other forms of injustice.
Legal experts quoted in multiple reports have expressed skepticism about the strength of the case. Andrew Tessman, a former federal prosecutor who handled financial fraud cases, called it "very odd" to charge a corporate entity with these crimes and predicted the government would not be able to prove its case at trial.
More than a dozen donors to the SPLC told The Intercept that they found the indictment "farcical," noting that they were aware the group paid informants and supported that use of their money. Mary Wynne Kling, a longtime supporter from Alabama, said, "We knew they were paying informants." Another donor, Jan Davis Barham, defended the group's actions, saying they were aimed at rooting out information on hate groups.
The SPLC has a history of direct confrontation with hate groups, dating back to its founding in 1971 as a civil rights legal clinic. In 1979, it shifted its focus to combating the far right, and its "Hatewatch" project has identified hate groups and their leaders for decades. The group also played a role in bankrupting the United Klans of America.
Fair noted that the SPLC has faced threats of violence throughout its history, including a 1983 firebomb attack on its office. He said the use of informants was necessary given the dangers the organization and its staff face.
The case is being handled by the US attorney for the middle district of Alabama. The SPLC has said it will "vigorously defend ourselves, our staff, and our work."