The leader of the Southern Poverty Law Center pleaded not guilty Thursday on behalf of the organization in a federal donor fraud case, an arraignment that brought Bryan Fair into a courtroom in Montgomery, Alabama. Fair appeared in federal court representing the civil rights group amid charges that prosecutors say stem from how the SPLC handled money from donors.

According to the Justice Department’s case as described in court reporting, prosecutors accuse the SPLC of defrauding donors by failing to disclose that some of the organization’s funds would be used to pay informants within extremist groups. The indictment was filed April 21, the reporting said, and it frames the case as an effort by prosecutors to police what they characterize as undisclosed financial arrangements involving informants tied to extremist organizations.

Federal prosecutors charged the SPLC with money laundering conspiracy, wire fraud and false statements to a bank, according to the account of Thursday’s hearing. The reporting said the charges also include an allegation that donor funds were used to finance the same extremism the group says it works to combat.

The indictment described in the reporting said that at least $3 million went to informants affiliated with the Ku Klux Klan, the Aryan Nations, the National Socialist Party of America and other groups between 2014 and 2023. Fair, in statements highlighted in the court coverage, said the payments were directed to confidential informants to monitor threats of violence from extremist groups.

Fair said that the information gathered helped save lives and was frequently shared with the FBI, according to the statement included in the reporting. Fair also characterized the charges as incorrect, saying the case was “provably wrong” and that it relied on “inaccurate facts and a misapplication of law,” describing the SPLC’s informant program as successful at preventing threats and attacks, stopping criminal activity and gathering information to help dismantle efforts of hate and extremist groups.

The hearing also included discussion of the defense’s theory for potential next steps. The SPLC’s attorney, Adde Lowell, said that the defense may try to dismiss the charges in coming weeks on what he described as “vindictive prosecution,” echoing supporters’ view that the SPLC is being unfairly targeted by the Trump administration after civil-rights victories.

U.S. Attorney Kevin Davidson, as quoted in the reporting, rejected the defense premise after the trial, saying there was “nothing vindictive about this prosecution” and describing the office as following standard procedure. Acting U.S. Attorney General Todd Blanche also addressed the group’s relationship with law enforcement in recent remarks referenced by the reporting, acknowledging that the organization has a history of sharing information with law enforcement.

The reporting said the SPLC has drawn criticism from conservatives, including FBI Director Kash Patel, particularly after the group included Charlie Kirk’s Turning Point USA in a report about “hate and extremism.” The coverage also said no individuals are charged in the case, and that the trial is scheduled to begin in October.