Attorney General Steve Marshall launched a civil investigation into the Southern Poverty Law Center on the grounds of alleged deceptive fundraising practices under Alabama’s consumer protection statutes.
Marshall’s office confirmed Monday that it has issued an investigative subpoena to the SPLC, seeking internal records related to its fundraising practices, donor disclosures, payments and annual disbursements to confidential informants. Marshall demanded the documents to determine whether they acted within the scope of Alabama’s Deceptive Trade Practices Act and other state laws governing charitable organizations.
In a statement, Marshall said the investigation is aimed at determining whether the organization misrepresented how it used donor funds or failed to disclose financial information properly.
“We have always suspected that they were monetizing hate and trading on race-baiting, it was just a matter of proving it. Thanks to the U.S. Justice Department’s action to deal with the SPLC, the State’s efforts have now received a shot in the arm,” said Marshall.
The subpoena requests extensive documentation, including communications with donors, records detailing contributions from inside and outside Alabama, and an accounting of payments made to informants. The office has set a deadline for the materials to be produced later this month.
Marshall’s subpoena follows a federal indictment returned by a grand jury in the U.S. District Court for the Middle District of Alabama. Federal prosecutors allege that millions of dollars in charitable donations were improperly directed to compensate confidential sources connected to extremist organizations. The charges include 11 counts of wire fraud, false statements and conspiracy.
The SPLC has denied wrongdoing in the federal case and SPLC Interim CEO and President Bryan Fair entered a plea of not guilty last week. Organization leaders have defended the now-defunct informant program as a long-standing effort to gather intelligence on hate groups and share information with law enforcement to prevent harm. They maintain that donor funds were used appropriately and that the allegations distort the nature of their work.
Marshall has been a frequent critic of the SPLC, accusing the organization of leveraging its reputation to generate revenue. His office characterized the federal indictment as a catalyst for renewed scrutiny at the state level.
“We look forward to learning more about the inner workings of an organization that we have long believed was rotten, but until recently, has been impervious,” said Marshall.
The investigation represents a significant development for one of Alabama’s most nationally recognized nonprofits. Founded in 1971 and headquartered in Montgomery, the SPLC built its reputation through civil litigation against the Ku Klux Klan and other extremist groups before expanding into advocacy and educational initiatives.
