Southern Poverty Law Center pleads not guilty in federal fraud case

MONTGOMERY, Ala. (AP) — The Southern Poverty Law Center, best known for monitoring hate groups, pleaded not guilty Tuesday to federal charges that it defrauded donors by not disclosing that some of the money would be used to pay informants in extremist organizations.

Attorney Abbe Lowell entered the not guilty plea on behalf of the organization to a superseding indictment that adds details about the charges first announced in April.

The Justice Department has accused the SPLC of funding extremist groups while publicly claiming it was working to dismantle them. The SPLC has denied wrongdoing and said the informant program provided critical intelligence about the work of the groups — information it regularly provided to law enforcement agencies.

The SPLC has accused the Justice Department of carrying out a vindictive prosecution as part of a retribution campaign against President Donald Trump’s perceived political enemies.

The superseding indictment alleges that $4.1 million in donations were used to pay informants inside extremist groups. Prosecutors said some of the money was used for recruiting new members and purchasing Ku Klux Klan robes and materials for cross-burning ceremonies.

The indictment said the paid informants included KKK members and white nationalists who initially approached the SPLC for help leaving the extremist organizations but were offered monthly payments and expense reimbursements.

The brief Tuesday arraignment was conducted remotely. The case is scheduled to go to trial in October.