MONTGOMERY, ALA. — Federal prosecutors announced an indictment against the Southern Poverty Law Center in late April 2026, alleging criminal fraud by the Montgomery, Ala.-based nonprofit. The Justice Department accuses the organization of misrepresenting the nature of bank accounts it maintained to pay confidential informants.

The Justice Department claims the nonprofit defrauded its donors by saying it was fighting extremism while funding extremist groups through informant payments and placements. The Southern Poverty Law Center denies the allegations.

Founded in 1971, the SPLC built its reputation through court victories against the Ku Klux Klan, Aryan Nations, and Tom Metzger that held them accountable for civil rights violations and bankrupted them. Those legal successes attracted hundreds of millions of dollars in contributions and drew young researchers and journalists to the organization.

The nonprofit has faced serious threats since its founding. Its Montgomery offices were firebombed by members of the Ku Klux Klan in 1983, and co-founder and primary fundraiser Morris Dees was the target of numerous death threats.

The indictment follows years of internal upheaval at the organization. In 2019, the SPLC fired Dees following claims of sexual harassment and racial discrimination. That same year, the co-founder and president resigned, as did the legal director. The organization hired Tina Tchen to conduct a workplace environment review, and staff unionized to address concerns about systemic biases against Black employees and women.

In 2024, management laid off dozens of employees as part of a restructuring. The team working on immigration issues was largely laid off as part of that restructuring.