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The SPLC has been federally indicted on six counts of wire fraud, four counts of false statements to a federally insured bank, and one count of conspiracy to commit concealment money laundering. And the charges were filed in the Middle District of Alabama. 14-page indictment PDF here.
In brief, the indictment alleges that the SPLC raised money under false pretenses by claiming to fight right-wing extremism, instead funding extremist informants with roughly $3 million dollars of donor money. The informants included members of the KKK and an organizer of the infamous Charlottesville unite the right fiasco. They allegedly did this using illegal means, creating fictitious cutouts and lying to banks to open phony bank accounts to obscure the flow of funds from the SPLC to their informants.
I can't help but feel some schadenfreude here - "no one is above the law" also applies to left-wing NGOs who think they can larp as spies. They even named one of their cutouts Center Investigative Agency... It seems like they flew very close to the sun thinking that their brand and political affiliation would shield them from scrutiny. Project Veritas got a lot more heat for doing a lot less.
From a layman's perspective the indictment seems pretty compelling but I'd be curious to hear what the legal commentators here think. Of course this is only one side of the argument, but those statements to the bank in particular seem quite incriminating. Also, what exactly would be the consequences for the SPLC if the DOJ succeeds on some or all counts?
I think it's useful to note before getting into any particular details that the Trump admin's record of even securing a grand jury in prosecutions against groups and people they don't like has been extremely poor, yet alone ever getting to a conviction. Whether it be frivolous defamation lawsuits or nakedly politically motivated investigations against someone like Jerome Powell, they keep losing when forced to find or put actual evidence in front of judges and juries. One reason as stated by a top Bondi aide is that finding competent lawyers who are also willing to play MAGA politics over their career prosecution success rates has been quite difficult. Not many want to walk away in 2028 with tons of failed indictments that couldn't even get past a grand jury attached to their name.
Not that it necessarily matters, as FIRE points out
In the same way, just having the federal government use the legal system to smear your name, out private details, and force you to defend yourself is a victory for lawfare wagers.
But let's get into the details anyway.
This is already questionable. The idea that paying for an informant inside of a group to provide you leaks and information that you report on, and even share with law enforcement if it hints at potential criminal behavior counts as "funding" the movement as a form of support is quite a stretch. I doubt they'll find many major donors who consider this to be a fraudulent use of a really small fraction of their money.
It's also really interesting to see some of the blatant social media shills flip from "unite the right was peaceful" (which it was) to "unite the right was a dangerous rally caused by the SPLC!' just because of a single guy unrelated to the informant organizer driving into a crowd. Just peak partisan brain on display.
Now that might actually have some teeth to it, assuming of course that this is actually correct considering ya know, the Trump admin repeatedly failing over and over when having to actually provide evidence for their claims in court against political opponents. But assuming this one is true and they did lie to the banks themselves, then it does seem criminal.
Ok there is the legal question here, and it kind of looks like they are cooked because lying to banks seems like a very easy thing to prove. But probably more important is the court of public opinion, and what future donors will think. And reading the indictment it really seems very bad, the SPLC was going far beyond just paying informants for information. They were directly funding people who they promised to fight against. They were directly funding behaviors and events they promised to fight against. They were directly funding leadership of organizations they promised to fight against. To the tune of millions of dollars.
Some examples from the indictment:
The SPLC billed this as a hate rally, they told their donors they were working against it, and they solicited donations from them on that basis. At the same time they were paying organizers, they were telling people they paid to attend, and they were coordinating transportation to the rally. They told their donors they were working to stop a hate group doing "hate speech" while they directly funded and coordinated with leaders of that group to do that very same thing they promised to stop, with money that they said would be used to stop it!
This is what the SPLC tells its donors about the National Alliance. If the SPLC wanted to dismantle National Alliance why would they give their fundraiser a million dollars? How exactly could donating to a group be considered dismantling that group?
Is it honest and ethical to tell your donors you are working to stop this specific person and this specific organization while secretly paying that person, the former leader of that organization, $140,000? While giving their fundraiser (and presumably by extension that group) over $1,000,000? In what sense can the SPLC be said to be working against a man when they are directly funding him and indirectly funding his organization? In what sense is that not just flat out lying?
These are the people who set policy, who make decisions, who control the entire organization. In a very direct sense they ARE the organization, more so than anyone else, and the SPLC is giving them, the KKK, the SPLC's biggest bogeyman, hundreds of thousands of dollars and indirectly funding their lawsuits.
The indictment is pretty short so I encourage you to read it if you think I am taking these out of context. This information was not in the OP so maybe you were not aware of it, but does seeing it now does that change your mind at all? If it was just paying informants for information then I agree that the funding allegations would be quite a stretch. But that is not really even close to what was happening here. They were directly coordinating and promoting and facilitating this stuff. It looks much closer to "self licking ice cream cone" than "informants for info".
This seems to assume that the Charlottesville rally would not have occured had they not been in touch with a single member of the larger group chat behind the rally. Informants have to be higher ups in order to provide solid information, but it's not like they are gods who make all the decisions by themselves for the groups. Helping the informant avoid exposure also seems like a basic concept that doesn't require assuming Charlottesville wouldn't have happened without them.
Because if you want an informant on the inside to leak you information and stay under cover, financial appeal can help you where moral appeal might not. Just paying people to snitch is not some new concept. It's not something the SPLC has invented, it's been around since the beginning of snitches and is used by law enforcement constantly.
Consider in just the five years from 2012 to to this hearing in 2017 the ATF and DEA alone paid informants almost 260 million.
Surely there's a difference between the government doing something, and theoretically being democratically accountable for it, versus an NGO of questionable action and well beyond any form of normal accountability?
Though I'm not sure exactly where I fall on the question being "paying informants creates questionable incentives" versus "NGOs should be more accountable for self-interested and possibly fraudulent behaviors."
I struggle to come up with a more sympathetic NGO where I would find this acceptable. Like... if Worldvision was paying people to have more kids and put them in orphanages, I think we could agree that's perverse and insane.
My fondness for Batman would change significantly if I learned that the Joker was a contractor being paid by Wayne Enterprises in order to justify the costumed crime fighting budget.
If Batman really cared about crime, he’d kill
Rick ScottThe Joker.More options
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