The Southern Poverty Law Center (SPLC), an organization known for tracking hate groups, pleaded not guilty Tuesday to federal fraud charges. The charges, detailed in a superseding indictment, allege that the SPLC defrauded donors by not disclosing that some funds were used to pay informants embedded within extremist organizations.

Prosecutors accuse the SPLC of using donation money to fund these extremist groups while publicly stating it was working to dismantle them. The superseding indictment specifies that approximately $4.1 million in donations were allegedly used for informant payments. According to prosecutors, some of these funds were also utilized for recruiting new members and acquiring materials for activities associated with groups like the Ku Klux Klan.

The indictment further states that the paid informants included members of the KKK and white nationalists. These individuals reportedly approached the SPLC seeking assistance to leave their respective extremist organizations but were instead offered monthly payments and reimbursement for expenses.

The SPLC has denied any wrongdoing, asserting that its informant program provided crucial intelligence on extremist groups, information that was regularly shared with law enforcement agencies. The organization has also accused the Justice Department of pursuing a vindictive prosecution, suggesting it is a retaliatory action against perceived political adversaries of former President Donald Trump.

An attorney for the SPLC entered the not guilty plea on behalf of the organization during a remote arraignment on Tuesday. The case is currently slated for trial in October.