Federal prosecutors accuse nonprofit of secretly channeling donor funds to informants tied to groups including the Ku Klux Klan; organization denies allegations, vows legal defense.
WASHINGTON, D.C. | The U.S. Department of Justice has unsealed a sweeping federal indictment against the Southern Poverty Law Center (SPLC), alleging the organization engaged in a decades-long scheme involving fraud, financial misrepresentation, and covert payments to individuals connected with extremist groups.
A federal grand jury returned an indictment charging the SPLC with 11 counts, including wire fraud, false statements to a federally insured bank, and conspiracy to commit money laundering. According to prosecutors, the case centers on an alleged network of “field sources” dating back to the 1980s—individuals who either infiltrated or were affiliated with hate groups.
DOJ Allegations: Covert Funding and Donor Deception
Federal authorities allege that the SPLC used donor funds to secretly compensate informants embedded within organizations such as the United Klans of America, National Socialist Movement, and other extremist networks.
Between 2014 and 2023, prosecutors claim more than $3 million was distributed through concealed financial channels. The indictment asserts that these payments were structured to obscure their purpose from donors, raising questions about transparency and nonprofit governance.

