Southern Poverty Law Center Indicted on Federal Fraud Charges Over Paid Informant Program

The Montgomery-based Southern Poverty Law Center (SPLC) faces federal fraud charges stemming from a covert paid informant program that allegedly funneled millions in donor funds to individuals affiliated with the same extremist groups the organization claims to oppose.

According to a Justice Department indictment unveiled Tuesday, the SPLC faces 11 counts including wire fraud, false statements to a federally insured bank, and conspiracy to commit concealment money laundering.

Federal prosecutors allege the civil rights organization disbursed approximately $3 million to paid informants between 2014 and 2023, many of whom were affiliated with white supremacist and neo-Nazi groups including the United Klans of America, the National Socialist Party of America, and the Aryan Nations-linked “Sadistic Souls Motorcycle Club.”

“As the indictment describes, the SPLC was not dismantling these groups,” Acting Attorney General Todd Blanche told reporters at a press conference. “It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred.”

The investigation revealed several startling examples of the SPLC’s financial relationships with extremist group members. Perhaps most controversial was the revelation that the organization paid more than $270,000 between 2015 and 2023 to a member of the “leadership chat group” that helped plan the deadly 2017 “Unite the Right” rally in Charlottesville, Virginia. The indictment states this informant shared “racist social media posts and helped organize transportation to events” associated with the rally.

In another case, the SPLC allegedly paid over $1 million over nine years to a National Alliance member who broke into the white supremacist group’s headquarters to steal documents. The National Alliance and its founder’s writings have been linked to numerous violent attacks since the 1980s, including the 1995 Oklahoma City bombing.

Other significant payments included more than $300,000 to an officer in both the National Socialist Movement and the Sadistic Souls Motorcycle Club between 2014 and 2020, and over $140,000 to a chairman of the National Alliance who was simultaneously listed on the SPLC’s own “Extremist File” website.

The investigation further revealed payments to an “Imperial Wizard” of The United Klans of America, a group associated with the 1963 16th Street Baptist Church bombing in Birmingham that killed four young girls. Separately, the organization funneled money to a Ku Klux Klan member married to a local KKK leader.

“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,” FBI Director Kash Patel said. “That is illegal — and this is an ongoing investigation against all individuals involved.”

According to prosecutors, the SPLC’s paid informant program began in the 1980s shortly after its founding and relied on bank accounts established for fictitious entities to channel covert payments to informants.

Kevin Davidson, acting U.S. Attorney for the Middle District of Alabama, emphasized the deception at the heart of the charges: “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.”

The indictment comes at a challenging time for the SPLC, which has seen increased public support and donations in recent years, including contributions from prominent donors like George Clooney and Apple CEO Tim Cook. Much of this support surged following events like the 2017 Charlottesville rally.

The SPLC has denied all allegations of wrongdoing and is reviewing the indictment. Bryan Fair, the organization’s interim president, defended their work in a statement: “Taking on violent hate and extremist groups is among the most dangerous work there is, and we believe it is also among the most important work we do.”

A spokesperson further maintained that the organization’s monitoring of extremist groups, including through paid informants, has “saved lives.” No individuals have been named in the indictment, though Blanche indicated the investigation is ongoing.