SPLC pleads not guilty to federal financial crimes

MONTGOMERY, Ala. (CN) — The Southern Poverty Law Center pleaded not guilty Thursday in federal court to an 11-count indictment in which prosecutors claim the prominent civil rights organization defrauded donors by secretly funneling more than $3 million to leaders and organizers of the very racist and white supremacist groups it publicly vowed to dismantle.

In an indictment filed April 21, prosecutors charged 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, claiming the scheme ran from at least 2014 through August 2023.

"The charges against the SPLC are provably wrong," attorney Abbe Lowell said in a statement to the media after the arraignment. "They are based on inaccurate facts and inapplicable law." Lowell went on to suggest the prosecution was political in nature, with the Department of Justice departing from principles "it is required to uphold."

According to prosecutors, the SPLC solicited donations by promising to confront hate, expose white supremacy and fund anti-bias work. At the same time, it operated a covert network of paid "field sources" — some of whom held leadership roles in the Ku Klux Klan, Aryan Nations, National Alliance and National Socialist Movement.

Prosecutors say one field source belonged to the online leadership chat that planned the 2017 "Unite the Right" rally in Charlottesville, Virginia; made racist postings under SPLC supervision; and helped coordinate transportation to the event. Others were accused of fundraising for neo-Nazi groups or serving as officers in extremist organizations while receiving six- and seven-figure payments from the nonprofit.

To conceal the payments, prosecutors say, SPLC officials opened bank accounts in the names of fictitious entities such as "Center Investigative Agency," "Fox Photography," "North West Technologies," "Tech Writers Group" and "Rare Books Warehouse." The organization then used those accounts and masked ACH transfers to route donor money to the field sources while making false statements on bank documents about ownership and control of the sham businesses, according to prosecutors.

"Donors gave their money believing they were supporting the fight against violent extremism," acting U.S. Attorney Kevin Davidson said in a statement following the indictment. "As alleged, the SPLC instead diverted a portion of those funds to benefit individuals and groups they claimed to oppose. That kind of deception undermines public trust and social cohesion."

Last week, the SPLC filed two motions in federal court concerning the grand jury indictment, prompted by false statements made by acting U.S. Attorney General Todd Blanche during press and media interviews about the case. In part, the SPLC argued it is entitled to learn whether the same or similar false statements were also presented to the grand jury in secret.

At Thursday's arraignment, defense attorneys waived the right to a speedy trial because of those pending discovery issues. U.S. Magistrate Judge Kelly F. Pate set a tentative trial date in October 2026.