A federal grand jury in Montgomery, Alabama, indicted the Southern Poverty Law Center on Tuesday with 11 counts of wire fraud, false statements to a federally insured bank, and conspiracy to commit money laundering.

The U.S. Attorney's Office for the Middle District of Alabama announced the charges, alleging the SPLC secretly directed more than $3 million in donated funds from 2014 to 2023 to individuals linked to violent extremist organizations. These groups included the Ku Klux Klan, United Klans of America, Unite the Right, National Alliance, National Socialist Movement, Aryan Nations-affiliated Sadistic Souls Motorcycle Club, National Socialist Party of America, and American Front. Prosecutors claim the nonprofit publicly condemned these groups on its website while using the payments to infiltrate them and solicit further donations through misleading representations about fund usage.

To hide the transactions, the SPLC allegedly opened bank accounts under fictitious entities and provided false information to banks, according to the indictment. The scheme traces back to the 1980s, when the organization began building a covert network of informants within such groups. Donors were not informed that their contributions supported figures from organizations the SPLC opposed.

The Federal Bureau of Investigation, with assistance from the IRS Criminal Investigation Division, probed the case. Two civil forfeiture actions seek recovery of the alleged illicit proceeds.

Acting Attorney General Todd Blanche stated, “The SPLC is manufacturing racism to justify its existence. Using donor money to allegedly profit from Klansmen cannot go unchecked. The Department of Justice will hold the SPLC and every other fraudulent organization operating with the same deceptive playbook accountable. No entity is above the law.”

FBI Director Kash Patel added, “The SPLC allegedly engaged in a massive fraud operation to deceive their donors, enrich themselves, and hide their deceptive operations from the public. 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.”

Acting U.S. Attorney Kevin Davidson remarked, “Donors gave their money believing they were supporting the fight against violent extremism. 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." FBI Special Agent in Charge Sara J. Jones of the Mobile Field Office emphasized donor transparency and accountability.

The SPLC, founded in 1971 and headquartered in Montgomery, describes its mission as dismantling white supremacy and advancing human rights. The organization previously disclosed using paid informants to monitor threats and share intelligence with law enforcement, a practice rooted in the violent context of the Civil Rights era. SPLC interim CEO Bryan Fair stated the probe focused on this discontinued program, adding, “We will vigorously defend ourselves, our staff, and our work.”

No individuals have been charged, and the investigation continues. An indictment represents allegations only; the SPLC is presumed innocent until proven guilty.