I find this news deeply distressing. The Southern Poverty Law Center (SPLC) has been indicted by a grand jury for money laundering, making false statements, and conspiracy:
A Grand Jury in Montgomery, Alabama, today returned an indictment charging the Southern Poverty Law Center (SPLC) with 11 counts of wire fraud, false statements to a federally insured bank, and conspiracy to commit concealment money laundering. The United States Attorney’s Office for the Middle District of Alabama Northern Division filed two forfeiture actions to recover alleged proceeds of the organization’s fraud scheme. The Federal Bureau of Investigation (FBI) investigated this case with assistance from the Internal Revenue Service Criminal Investigation (IRS-CI).
“The SPLC is manufacturing racism to justify its existence,” said Acting Attorney General Todd Blanche. “Using donor money to allegedly profit off Klansmen cannot go unchecked. This Department of Justice will hold the SPLC and every other fraudulent organization operating with the same deceptive playbook accountable. No entity is above the law.”
“The SPLC allegedly engaged in a massive fraud operation to deceive their donors, enrich themselves, and hide their deceptive operations from the public,” said FBI Director Kash Patel. “They lied to their donors, vowing to dismantle violent extremist groups, and actually turned around and paid the leaders of these very extremist groups – even utilizing the funds to have these groups facilitate the commission of state and federal crimes. That is illegal – and this is an ongoing investigation against all individuals involved.”
This is not a rumor or a partisan talking point; it is a formal indictment returned by a grand jury. That makes it serious. But it is still unproven—and that uncertainty is precisely what makes the situation so troubling. The reason I find it distressing is that no matter how it is interpreted there is very little good news here. As I see it there are three prospective explanations:
1. The SPLC’s—they were engaging in investigation and paying informants.
Even if this were an informant model, it raises difficult questions about moral hazard and indirect enablement. Money is fungible, and the line between infiltration and subsidization is not as clean as one might wish. Furthermore, citizens in a polity have an obligation to report crimes. That applies to journalists and NGOs as well. If they knew that crimes were to be committed and, worse, paid some of those doing the planning for those crimes, they were accomplices before the fact.
2. The DOJ’s explanation—the SPLC were committing crimes to have more to complain about.
According to the indictment starting in the 1980s, the SPLC began operating a covert network of individuals who were either associated with violent and extremist groups, such as the Ku Klux Klan, or who had infiltrated violent extremist groups at the SPLC’s direction. Unbeknownst to donors, some of their donated money was being used to fund the leaders and organizers of racist groups at the same time that the SPLC was denouncing the same groups on its website.
“Donors gave their money believing they were supporting the fight against violent extremism,” said Acting United States Attorney Kevin Davidson. “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.”
Between 2014 and 2023, the SPLC secretly funneled more than $3 million in donated funds to individuals who were associated with various violent extremist groups…
Those groups included the Ku Klux Klan, the American NAZI Party, and Aryan Nation.
Long-lived organizations like the SPLC are subject to a temptation to drift from mission completion to mission maintenance. Has the SPLC fallen to that temptation?
3. The DOJ is engaging in a partisan hit job.
The SPLC, Senate Minority Leader Chuck Schumer, and many others have made precisely that claim against the DOJ.
Every single one of those explanations would be horrid. Whichever explanation proves correct, something important has already been damaged.







