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The Department of Justice last month announced an indictment against the Southern Poverty Law Center (SPLC), alleging that the civil rights nonprofit defrauded donors by secretly paying informants associated with extremist organizations, including the Ku Klux Klan.
A federal grand jury 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 concealment money laundering, according to the Justice Department.
The superseding indictment retains those charges while expanding on the alleged 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 rally and the Aryan Nations-affiliated Sadistic Souls Motorcycle Club.
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The original indictment alleged approximately $3 million in payments between 2014 and 2023.
“The SPLC’s paid informants (‘field sources’) engaged in the active promotion of racist groups at the same time that the SPLC was denouncing the same groups on its website,” the indictment states.
Prosecutors further allege the SPLC opened bank accounts tied to fictitious entities in order to conceal donor funds that were allegedly routed to confidential sources.
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According to the indictment, the SPLC began operating a covert informant network in the 1980s, and between 2014 and 2023 allegedly paid those sources in a clandestine manner.
The DOJ alleges an SPLC employee instead encouraged the pair to remain involved and offered them a monthly salary of $1,200.
The two subsequently agreed to remain in the organization, according to the indictment.
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Prosecutors allege an SPLC employee instructed the individuals to claim they worked for a company called Rare Books and helped college students with research and writing assignments if anyone questioned the source of their income.
The indictment alleges donor funds were used to pay both individuals through SPLC accounts.
According to prosecutors, the pair were also reimbursed for expenses related to Ku Klux Klan activities, including cross-burning events and associated costs such as wood and fuel.
One of the individuals is also accused of recruiting new members using donor-funded payments. The indictment further alleges the SPLC knew donor funds were used to purchase materials for Ku Klux Klan garments.
In a statement to Fox News Digital, attorney Abbe Lowell, who represents the SPLC, denied the allegations.
“This apparent superseding indictment attempts to shore up the flaws in the initial charges, but it changes nothing,” Lowell said.
“The SPLC did not lie to its donors, it did not mislead banks it did business with, and its informant program prevented violence and saved lives,” he continued.
“It appears the Justice Department shared the indictment with media before it was unsealed by the court – another example of the government’s troubling handling of this case.”
“We will be addressing these irregularities with the court and look forward to presenting the truth at trial,” he added.
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The superseding indictment also notes that the SPLC’s reported revenue increased from roughly $38.7 million in 2010 to more than $129 million in 2023, an increase of approximately 233%.
According to the filing, the organization’s net assets grew from approximately $238 million to nearly $787 million during the same period.
The SPLC is a longtime nonprofit organization that says it combats white supremacy and extremism through research, reporting and monitoring efforts intended to assist law enforcement and the public.
During a news conference announcing the original indictment, Acting Attorney General Todd Blanche alleged the SPLC paid members of extremist groups so it could generate “work product” documenting their activities.
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“To that end, [SPLC] was doing the exact opposite of what it told its donors it was doing – not dismantling extremism but funding it,” Blanche said.
Fox News Digital’s Alexandra Koch, David Spunt, Jake Gibson and Alec Schemmel contributed to this report.
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