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DOJ Alleges SPLC Fraud Funded Racists


Moral poverty ran amok at the SPLC, and now it has been criminally indicted.
Apr 23, 2026
By
Scott D. Cosenza, Esq.


The Southern Poverty Law Center (SPLC), a non-profit, took millions in charitable contributions for extinguishing racism and used the money to fund neo-Nazi propaganda. These incendiary charges were entered by a federal grand jury and announced by acting US Attorney General Todd Blanche on Monday (April 21). The 11-count indictment, which includes bank and wire fraud charges and a money-laundering kicker, was lodged against the SPLC as an organization. Now widely viewed as a Democrat Party attack group, the firm once tallied major wins against some of the worst racist groups in the country. Its future is uncertain to say the least.

Blanche, who announced the charges with FBI Director Kash Patel, said about the grand jury findings:

"The SPLC is a non-profit entity that purports to fight white supremacy and racial hatred by reporting on extremist groups and conducting research to inform law enforcement groups with the goal of dismantling these groups. As the indictment describes, the SPLC was not dismantling these groups. It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred."

Neither Morris Dees, the group's controversial founder, nor anyone else has been charged. Federal criminal charges against a corporation (the SPLC is an Alabama-chartered corporation) can include only money damages as a result of a conviction, but cannot result in anybody being incarcerated. So, while the liberty of the leaders is not under direct threat, the charity's substantial endowment is.

SPLC an $800 Million Target

According to the most recent publicly available filings, the group sits on a veritable mountain of cash. After a strong legacy of destroying many racist groups through the creative use of the civil justice system, the group cashed in and crashed out in an orgy of anti-Republican hate. Their big cases stopped in the 1990s. The insufficient inventory of racists since then has been so spare as to create a sense of urgency on the home front – so they had to manufacture some!

The FBI director said, "They use the fraudulently raised money – by lying to their donor network – thousands of Americans – to go ahead and actually pay the leadership of these supposed violent extremist groups." Then he detailed a who's who of race hate in the United States, which these civil rights heroes funded to the tune of millions. They include the Ku Klux Klan, United Klans of America, Aryan Nations Motorcycle Club, National Socialist Movement, and the American Front. Patel said they know of at least one instance where the funds were used to commit crimes. If some of that could be justified as a kind of inside-source payment, the invention of fraudulent sources and destinations for money is not. In our system, a private investigator may not do everything the police may. This includes statements made to financial institutions about whether an entity is involved in business (or not).

The indictment demands no specific amount. Instead, the government is asking for every dollar traced back to the fraud to be accounted for and refunded. So, with this prosecution, they have likely neutered the SPLC for both the coming congressional elections and perhaps forever. It's a major win for Republicans. Being tagged as racist by a group with a genuine civil rights champion legacy – even if expired – represented political damage for GOP candidates so tagged. These revelations mean such missiles will now fail to land hard, if at all.

And the rest of the story? How many of the thousands of donors who bought into the anti-racism narrative with their own wages will continue to send money in? President Donald Trump’s Department of Justice may have just scored a major political victory with this criminal prosecution.

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