Austin, Texas — Texas Attorney General Ken Paxton announced Monday that his office has opened an investigation into the Southern Poverty Law Center (SPLC) following federal allegations that the civil rights organization secretly funded extremist groups it publicly opposed.
The investigation comes after a federal grand jury in Alabama indicted the SPLC last month on multiple charges including wire fraud, bank fraud, and conspiracy to commit money laundering. Federal prosecutors allege the organization diverted millions of dollars in donor funds between 2014 and 2023 to individuals connected to groups including the Ku Klux Klan and the American Nazi Party while concealing the transactions through shell entities and hidden accounts.
Paxton said his office issued a Civil Investigative Demand to determine whether the SPLC violated Texas law through deceptive fundraising and donor solicitation practices. He accused the organization of misleading donors about how contributions were being used.
The Department of Justice has described the case as one involving fraudulent misuse of donor funds and concealment of financial transactions. Acting Attorney General Todd Blanche previously alleged the SPLC “manufactured racism to justify its existence.”
The SPLC has pleaded not guilty and strongly denied all allegations. The organization, founded in 1971, is widely known for tracking extremist movements and advocating on issues involving civil rights, voting rights, and criminal justice reform. Critics of the SPLC, particularly conservatives, have long accused the group of unfairly labeling political organizations as extremist.
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