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The Justice Department last month announced a lawsuit against the Southern Poverty Law Center (SPLC), alleging that the nonprofit human rights organization defrauded donors by secretly paying informants affiliated with extremist organizations, including the Ku Klux Klan.
A federal judge in the Middle District of Alabama returned an 11-count indictment in April charging the SPLC with six counts of wire fraud, four counts of making false statements to a federally insured bank and one count of conspiracy to commit money laundering, according to the Justice Department.
The most advanced case maintains those charges while increasing allegations of misconduct.
According to the DOJ, the SPLC “secretly funneled” more than $3 million in donor funds between 2014 and 2023 to numerous individuals associated with extremist organizations, including the Ku Klux Klan, United Klans of America, the National Socialist Movement, participants in the Unite the Right Souls Rally and the Aryan Motorcycle Sadistic Club-.
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The Southern Poverty Law Center has widespread influence in education. File: Acting Attorney General Todd Blanche, left, and SPLC Interim President and CEO Bryan Fair are pictured separately as the Justice Department pursues charges against the Southern Poverty Law Center. (Nathan Posner/Anadolu via Getty Images; USA TODAY Network via Imagn Images)
The first case alleged payments of approximately $3 million between 2014 and 2023.
“The SPLC’s paid informants (‘wild sources’) were engaging in the promotion of racist groups while the SPLC criticized the same groups on its website,” the indictment said.
Prosecutors also said the SPLC opened bank accounts tied to fictitious companies to hide donor funds allegedly going to secret sources.
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The Southern Poverty Law Center (SPLC) building seen in March 2020 in Montgomery, Alabama. (Barry Lewis/Photos via Getty Images)
According to the indictment, the SPLC began using a network of informants in the 1980s, and between 2014 and 2023 it allegedly paid those sources in secret.
The DOJ alleges that an SPLC employee instead encouraged the pair to remain involved and offered them a monthly stipend of $1,200.
The two eventually agreed to stay in the union, according to the lawsuit.
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Acting Attorney General Todd Blanche speaks during a press conference with FBI Director Kash Patel at the Department of Justice on April 21, 2026, in Washington, DC, following the indictment of the Southern Poverty Law Center. (Nathan Posner/Anadolu via Getty Images)
Prosecutors say the SPLC employee instructed people to say they worked for a company called Rare Books and help college students with research and writing assignments if anyone asked where their pay came from.
The lawsuit alleges that donor money was used to pay both individuals through SPLC accounts.
According to prosecutors, they were also reimbursed for expenses related to Ku Klux Klan activity, including car-burning events and related expenses such as firewood and fuel.
One of these people is accused of recruiting new members using sponsor-sponsored payments. The SPLC also revealed that the SPLC knew that donor money was being used to buy Ku Klux Klan clothing.
In a statement sent to Fox News Digital, attorney Abbe Lowell, who represents the SPLC, denied that.
A composite photo shows Acting Attorney General Todd Blanche pictured at the Department of Justice and FBI headquarters in Washington, DC. (Valerie Plesch/Bloomberg via Getty Images; Graeme Sloan/Bloomberg via Getty Images)
“This case that seems to be passing this one is trying to correct the mistakes of the first cases, but it doesn’t change anything,” said Lowell.
“The SPLC did not lie to its sponsors, it did not mislead the banks it did business with, and its whistleblower program prevented violence and saved lives,” he continued.
“It appears that the Department of Justice shared the case with the media before it was closed by the court – another example of how the government is handling this case.”
“We will deal with this irregularity with the court and look forward to presenting the truth when the case goes to trial,” he added.
NON-PROFIT INCOME CONTINUES Amid RISING WRITE-UP AFTER MAJOR PRIVATE CASES
SPLC Interim President and CEO Bryan Fair speaks during a wreath-laying ceremony at the Southern Poverty Law Center Civil Rights Memorial in Montgomery, Ala., on March 5, 2026. (Jake Crandall/The Advertiser / USA TODAY NETWORK via Imagn Images)
The superseded lawsuit also notes that the SPLC’s reported revenue has increased from $38.7 million in 2010 to more than $129 million by 2023, an increase of nearly 233%.
According to the filing, the organization’s assets grew from about $238 million to about $787 million during the same period.
The SPLC is a long-standing nonprofit organization that fights white supremacy and extremism through research, reporting and monitoring efforts aimed at helping law enforcement and the public.
During a news conference announcing the first indictment, Acting Attorney General Todd Blanche alleged that the SPLC was paying members of extremist groups to produce “work product” documenting their activities.
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“Therefore, [SPLC] “It’s doing the exact opposite of what it told its sponsors it was doing – not ending extremism but funding it,” Blanche said.
Fox News Digital’s Alexandra Koch, David Spunt, Jake Gibson and Alec Schemmel contributed to this report.
