The Southern Poverty Law Center was indicted Tuesday on federal fraud charges alleging it improperly raised millions of dollars to secretly pay leaders of the Ku Klux Klan and other hate groups for inside information, acting Attorney General Todd Blanche said.
The Justice Department alleges the civil rights group defrauded donors by using their money to fund the very extremism it claimed to be fighting, with more than $3 million paid to informants through a now-defunct program to infiltrate white supremacist and other extremist groups. Prosecutors allege some of the money was used by extremists to carry out other crimes, but court papers did not include specific examples.
“The SPLC was not dismantling these groups. It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred,” Blanche said.
The civil rights group faces charges of wire fraud, bank fraud and conspiracy to commit money laundering in the case brought in the federal court in Alabama, where the organization is based.
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The Justice Department alleges the SPLC made false statements to banks in order to set up accounts used to funnel money to informants. The group created bank accounts for fictitious entities such as “Fox Photography” and “Rare Books Warehouse” that were used to send money from donors to informants, in a scheme to conceal the money’s actual purpose, the indictment alleges.
Prosecutors say the group never disclosed to donors details of the informant program.
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One informant was paid more than $1 million between 2014 and 2023 while affiliated with the neo-Nazi National Alliance, the indictment said. Prosecutors say another informant was a member of the “online leadership chat group” that planned the 2017 white nationalist “Unite the Right” rally in Charlottesville, Virginia. The informant attended the rally at the direction of the SPLC, according to the indictment, and helped coordinate transportation for several others. That person was allegedly paid more than $270,000 between 2015 and 2013.
The SPLC said the program was kept quiet to protect the safety of informants.
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