WASHINGTON D.C. — Acting DOJ Attorney General Todd Blanche and FBI Director Kash Patel announced a federal indictment against the Southern Poverty Law Center (SPLC) on Wednesday, alleging the organization engaged in a multi-million dollar fraud scheme spanning more than a decade.
The indictment, returned by a grand jury in Alabama, charges the non-profit with wire fraud and bank fraud for allegedly using donor funds to pay leaders of extremist organizations, including the Ku Klux Klan, while publicly claiming to fight against them.
“This is a serious and egregious violation of a group that purported to dismantle violent extremist groups but in turn actually only fueled the hatred,” Patel said during a press conference at the Department of Justice.
The Scope of the Allegations
According to federal officials, the investigation revealed a complex system of financial deception designed to hide the destination of donor money.
Key findings from the indictment include:
- Direct Payments to Extremists: The SPLC allegedly paid over $3 million to individuals in leadership positions within hate groups. One individual reportedly received more than $1 million over several years.
- Shell Companies: Authorities claim the SPLC set up fictitious entities and shell companies across the United States to disguise the source of the payments.
- Donor Deception: The DOJ alleges the SPLC committed wire fraud by soliciting donations to “dismantle racism” while secretly funneling that money to the very groups they claimed to oppose.
- Bank Fraud: Officials say SPLC executives provided false information to financial institutions to bypass “Know Your Customer” (KYC) requirements when opening accounts for these shell companies.
“Money Never Lies”
FBI Director Kash Patel emphasized that the investigation relied heavily on financial tracking to uncover the alleged scheme. He noted that while the SPLC tried to make the payments appear legitimate, investigators spent a year combing through a decade of financial records.
“We were able to follow the money, because money never lies, and they got caught,” Patel stated. He added that the investigation is “very much ongoing” and suggested that individuals responsible for the scheme could face future charges, although the current indictment only names the SPLC as an entity.
Transparency and Oversight Questions
During the press conference, Acting Attorney General Blanche addressed questions regarding the timing of the investigation. He noted that the probe had been initiated years ago but was reportedly halted during the previous administration for unknown reasons.
“There was a decision made… I don’t have any insight into why it was made to not pursue the investigation,” Blanche said. “We started it again, and that brings us to where we are today.”
The SPLC, a 501(c)(3) non-profit organization, is legally required to maintain transparency regarding its expenditures and mission. Federal prosecutors argue that the lack of disclosure regarding payments to extremist “informants” constitutes a criminal breach of these regulations.
FBI Director Rebutts Personal Allegations
The press conference took a contentious turn as reporters questioned Patel about recent reports in The Atlantic regarding his personal conduct and alleged absences from the job. Patel vehemently denied allegations of intoxication or professional negligence, calling the reports “baseless lies.”
“I can say unequivocally that I never listen to the fake news mafia,” Patel said. He highlighted a 20% drop in the murder rate and a significant increase in fentanyl seizures as evidence of his effectiveness on the job. Patel also confirmed he has filed a $250 million defamation lawsuit against the publication.
Ongoing Federal Investigations
Beyond the SPLC case, Blanche and Patel confirmed that several other high-profile investigations are active. These include:
- An investigation into John Brennan and the origins of the 2016 counterintelligence probe.
- A probe involving Federal Reserve Chair Jerome Powell.
- Ongoing investigations into large-scale conspiracies related to past presidential elections.
Blanche defended the hiring of veteran prosecutor Joe diGenova to assist with these cases, dismissing concerns about potential conflicts of interest or bias. “Like any prosecutor, I expect that he will follow the facts,” Blanche said.
The SPLC has not yet released a formal statement regarding the indictment. As a defendant, the organization will have the opportunity to file motions and present a defense as the case moves toward trial in federal court.
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