On June 3, a federal grand jury in the Middle District of Alabama returned a superseding indictment against the Southern Poverty Law Center, a second, expanded set of charges building on an original April 21 indictment, alleging that $4.1 million in tax-exempt funds paid informants inside extremist organizations who then recruited new members and purchased materials for cross burnings and Ku Klux Klan robes and hoods.
The new charges do not target the general practice of paying informants but the DOJ’s allegation that the SPLC made these payments without disclosing them to donors and while defrauding banks.
The superseding indictment retains the original 11 counts, six of wire fraud, four of making false statements to a federally insured bank, and one of conspiracy to commit concealment money laundering, while expanding the alleged misconduct to include an SPLC employee’s knowledge that donor money purchased KKK garments, fuel, and wood for cross burnings. The indictment also notes the organization’s revenue and net assets grew more than 200% between 2010 and 2023.
The original 11-count indictment, announced April 21 by Acting Attorney General Todd Blanche alongside FBI Director Kash Patel, alleged the SPLC secretly funneled more than $3 million in donor funds between 2014 and 2023 to at least nine informants embedded in groups including the Ku Klux Klan, the National Socialist Movement, the Aryan Nations-affiliated Sadistic Souls Motorcycle Club, and a participant in the planning of the 2017 Charlottesville Unite the Right rally.
Prosecutors alleged the informants, known internally as “field sources” or “the Fs,” were paid through shell accounts while the SPLC publicly presented itself as working to dismantle those same groups. The SPLC pleaded not guilty and called the allegations false.
The indictment identifies eight informants by designation and specifies payments by group. One informant, F-9, was affiliated with the neo-Nazi National Alliance and received more than $1 million over nine years while fundraising for the organization. Prosecutors allege F-9 also broke into the National Alliance’s headquarters in 2014, stealing 25 boxes of documents the SPLC used in a published report, then paid a second National Alliance member $6,000 to falsely claim responsibility for the theft.
Hellbound and Down 