Exclusive: Former employee at Southern Poverty Law Center arrested on fraud charges
By Hannah Rabinowitz, Holmes Lybrand, CNN
(CNN) — A former employee of the Southern Poverty Law Center has been arrested in California on charges that she oversaw secret payments to informants inside of White supremacist groups, one of whom she was allegedly living with and had a romantic relationship with at the time.
The woman, Heidi Beirich, previously ran the SPLC’s project tracking hate groups in the US and allegedly “oversaw payments of donors’ money” to people inside of these hate groups, according to the indictment. Prosecutors say she shared a bank account with one of those sources, which included funds from the SPLC’s payments.
“I believe she was part of the effort to open bank accounts in completely fictitious companies’ names and make payments to individuals for reasons that that were not accurate as described,” Attorney General Todd Blanche said at a news conference Wednesday. “This is exactly what we said would happen in a case like this, which is that our investigators and the US attorneys and the agents working the case will can keep on working it even after the initial indictment.”
Beirich has been charged as part of a superseding indictment with wire fraud conspiracy, conspiracy to submit false statements to a federally insured bank and conspiracy to conceal money laundering.
A lawyer for Beirich denied wrongdoing on her part.
The charges are part of the Justice Department’s case against the SPLC over the alleged payments, which prosecutors say were done without donor knowledge and through shell companies.
The SPLC has fought the case, arguing that the government is mischaracterizing a long-standing informant program designed to gather intelligence on hate groups. Attorneys for the SPLC have also said that law enforcement officials have used information gathered by the organization’s informants in the past.
Despite her role in overseeing the payments — some of which were directed to an Imperial Wizard in the KKK — Beirich allegedly had a romantic relationship with one source who infiltrated a White Supremacy group and stole documents for the SPLC, according to the indictment.
That person, prosecutors say, was paid over $1 million by the SPLC since 2007 and shared a bank account with Beirich which contained $140,000 from those payments.
“Dr. Beirich is innocent, and this case is without merit,” her attorney, Michael J. Proctor said in a statement. “We believe the charges against her and the SPLC are politically motivated, and Dr. Beirich has been targeted in this case because of the important work she has done to combat hate groups and extremists.”
Proctor’s statement says Beirich left the SPLC over six years ago.
“Dr. Beirich won’t be silenced or intimidated by the government’s false and politicized allegations now,” Proctor continued. “She welcomes the opportunity to present the truth in court.”
This story was updated with additional details.
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