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Texas AG Paxton Investigates SPLC for Alleged Misuse of Donor Funds

Texas Attorney General Ken Paxton is ramping up his investigation into the Southern Poverty Law Center (SPLC) following federal allegations that the organization misused donor funds. The investigation, which began with a Civil Investigative Demand served on May 18, focuses on potential violations of Texas law related to deceptive donor solicitation practices.

The SPLC is accused of misleading Texas donors into funding extremist groups that the organization publicly claims to oppose. Paxton has stated that his office will ensure accountability for what he describes as blatant deception, emphasizing that donors deserve transparency about the use of their contributions.

Federal Indictment Expands Case

The federal case against the SPLC took a significant turn on June 2, when the Department of Justice announced a superseding indictment approved by a grand jury in Alabama. Prosecutors allege that the SPLC used $4.1 million in tax-exempt donor funds to pay informants within extremist organizations. These informants reportedly not only observed but also recruited new members and purchased materials for cross-burnings and Ku Klux Klan robes.

The indictment maintains the original charges of wire fraud, bank fraud, and conspiracy to commit money laundering, accusing the SPLC of defrauding donors and banks through shell accounts. It also addresses a legal defect in the original filing, aligning with the Supreme Court’s ruling in Thompson v. USA regarding the criminalization of false statements.

SPLC’s Response

The SPLC has actively contested the charges, filing a motion to dismiss the indictment on May 26. The organization argues that the charges are part of a broader retribution campaign against those perceived as political enemies by former President Donald Trump. The SPLC has also requested sanctions against federal prosecutors for allegedly leaking a draft of the new charges to the press.

Interim President and CEO Bryan Fair defends the SPLC’s informant program as a legitimate law enforcement tool, claiming it successfully prevented threats and attacks while gathering crucial information to dismantle hate and extremist groups. Fair insists that the charges are based on inaccurate facts and a misapplication of the law.

The trial in the federal criminal case is scheduled for October 2026. The Dallas Express will continue to monitor developments in the SPLC’s legal proceedings.


Original reporting: The Dallas Express — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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