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A federal grand jury has indicted the Southern Poverty Law Center on multiple fraud charges, accusing the prominent nonprofit of secretly paying members of extremist groups while misleading donors and financial institutions.
The indictment, returned in Alabama and announced Tuesday by the Justice Department, charges the organization with six counts of wire fraud, four counts of bank fraud and one count of conspiracy to commit money laundering.
Acting Attorney General Todd Blanche alleged the group’s actions went beyond monitoring hate groups and instead contributed to the very extremism it claims to combat.
“The SPLC was not dismantling these groups,” Blanche said at a news conference. “It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred.”
Prosecutors say the SPLC funneled more than $3 million in donor funds to individuals linked to far-right extremist organizations — including groups associated with the Ku Klux Klan and neo-Nazi networks — as part of a long-running confidential informant program.
According to the indictment, the program operated between 2014 and 2023 and involved payments to sources who allegedly infiltrated extremist circles. In at least one instance, prosecutors claim, funds went to an individual connected to organizers of the 2017 “Unite the Right” rally in Charlottesville, Virginia — where counterprotester Heather Heyer was killed.
The indictment does not allege that money was paid directly to extremist organizations themselves, but claims informants were involved in promoting or sustaining such groups while being compensated.
To facilitate payments, prosecutors allege the SPLC created bank accounts tied to fictitious entities — including names such as Center Investigative Agency, Fox Photography and Rare Books Warehouse — to conceal the source and purpose of the funds.
Those actions, authorities claim, allowed the organization to “disguise the true nature, source, ownership and control” of donor money.
In a statement, interim president and CEO Bryan Fair called the allegations “false” and defended the group’s work combating extremism.
“Taking on violent hate and extremist groups is among the most dangerous work there is,” Fair said. “To be clear, this program saved lives.”
He added that the organization would “vigorously defend” itself and continue its mission, describing the prosecution as an attempt to silence its efforts.
The indictment marks a dramatic escalation in tensions between the SPLC and the Trump administration. The organization has long been a target of criticism from allies of President Donald Trump, who have accused it of partisan bias and unfairly labeling conservative groups as extremist.
Last year, FBI Director Kash Patel severed formal ties between the bureau and the SPLC, calling it a “partisan smear machine.” Congressional Republicans have also scrutinized the group’s methodology and influence.
Blanche said the investigation into the SPLC began years ago but was paused during the Biden administration before being revived under Trump.
Some former prosecutors have raised questions about the case, particularly whether paying confidential informants — a common practice in law enforcement and investigative work — rises to the level of fraud.
At issue is whether the SPLC misrepresented its activities to donors and banks, and whether the use of intermediary entities constituted deliberate deception.
The case could hinge on how prosecutors prove intent and whether jurors view the informant program as legitimate investigative work or financial misconduct.
The SPLC is expected to challenge the charges in court, setting up a high-profile legal battle with potential implications for nonprofit investigative practices and donor transparency.
If convicted, the organization could face significant financial penalties and other sanctions.
The case also underscores broader debates over the role of advocacy groups, the limits of undercover research, and the intersection of politics and law enforcement in an increasingly polarized environment.
