US Justice Department Probes Fraud Claims In Black Lives Matter Movement

US Justice Department Probes Fraud Claims In Black Lives Matter Movement

The Justice Department is investigating whether leaders in the Black Lives Matter movement defrauded donors who contributed tens of millions of dollars during racial justice protests in 2020, according to multiple people familiar with the matter.

In recent weeks, federal law enforcement officials have issued subpoenas and at least one search warrant as part of an investigation into the Black Lives Matter Global Network Foundation, Inc. and other Black-led organizations that helped spark a national reckoning on systemic racism, said the people, who were not authorized to discuss an ongoing criminal probe by name and spoke on condition of anonymity to The Associated Press.

It was not clear if the investigation would result in criminal charges, but its mere existence invites fresh scrutiny to a movement that in recent years has faced criticism about its public accounting of donations they have received. The recent burst of investigative activity is also unfolding at a time when civil rights groups have raised concerns about the potential for the Trump administration to target a broad variety of progressive and left-leaning groups that have been critical of him, including those affiliated with BLM, the transgender rights movement and anti-ICE protesters.

Spokespeople for the Justice Department declined to comment on Thursday.

One of the people said the investigation had been initiated during the Biden administration but is getting renewed attention during the Trump administration. A second person confirmed that allegations were examined in the Biden administration.

The foundation said it took in over $90 million in donations, following the 2020 murder of George Floyd, a Black man whose last breaths under the knee of a white Minneapolis police officer sparked protests across the US and around the world.

Critics of the nonprofit foundation, and of the BLM movement broadly, accused organizers of not being transparent about how it was spending the donations. That criticism grew louder after BLM foundation leaders in 2022 confirmed they used donations to purchase a $6 million Los Angeles-area property that includes a home with six bedrooms and bathrooms.

Leaders previously have denied wrongdoing and publicly released tax documents. No prior investigations into the nonprofit’s finances have yielded proof of impropriety.

Leaders of the foundation have received subpoenas. In a statement emailed to the AP on Thursday, the foundation said it “is not a target of any federal criminal investigation.”

“We remain committed to full transparency, accountability, and the responsible stewardship of resources dedicated to building a better future for Black communities,” the foundation said in the statement.

The Black Lives Matter movement first emerged in 2013 after the acquittal of George Zimmerman, the neighborhood watch volunteer who killed 17-year-old Trayvon Martin in Florida. But it was the 2014 death of Michael Brown at the hands of police in Ferguson, Missouri, that made the slogan “Black lives matter” a rallying cry for progressives and a favorite target of derision for conservatives.

Movement founders and organizers pledged to build a decentralized organization governed by the consensus of BLM chapters. But as the movement’s influence grew, so did the number of organizations that became affiliated with BLM. In 2020, a tidal wave of public contributions in the aftermath of protests over Floyd’s murder came mainly to the BLM foundation, although other organizations were resourced from those funds.

Leaders of the foundation opened up about finances and organizational structure in 2022, revealing detailed accountings of expenditures. The latest Form 990 filing shows the BLM foundation had $28 million in assets for the fiscal year ending June 2024.

The investigation is being run out of the US Attorney’s Office for the Central District of California, in Los Angeles. The top prosecutor there, Bill Essayli, was disqualified from several cases earlier this week after a federal judge concluded that the Trump appointee has stayed in the temporary job longer than allowed by law. It’s not clear whether Essayli’s disqualification will impact the BLM investigation. He effectively remains the office’s top prosecutor with a different title of First Assistant United States Attorney.

Essayli had previously served as a Republican assemblyman in California, where he took up conservative causes and criticized the state’s COVID-19 restrictions. He has been outspoken against state policies to protect immigrants living in the country illegally, and he has aggressively prosecuted people who protest Trump’s ramped up immigration enforcement across Southern California.

As a private practice attorney, he characterized BLM as a “radical organization” while defending a white couple charged in 2020 with a hate crime after they were videotaped defacing a BLM mural in Martinez, California.

At the time, city-sanctioned BLM murals had been painted on roadways in cities throughout the US in an expression of solidarity with the racial justice movement. Essayli told a San Francisco CBS TV affiliate his clients were simply expressing their political viewpoints and that they disagreed with taxpayer funds being used to “sponsor a radical organization, Black Lives Matters.”

The couple took plea deals to resolve the case in 2022.

At the height of the Floyd-sparked reckoning on racial injustice, some state officials vowed their own investigations in the foundation’s finances, citing their responsibility to protect residents who may have donated to BLM. But most of those probes were resolved without official action.

In 2022, Indiana Attorney General Todd Rokita filed a lawsuit against the BLM foundation for failing to comply with an investigation into the organization’s finances. Soon after, a representative of the foundation responded with the necessary information and documentation, a spokesperson for the attorney general’s office said, and the lawsuit was dismissed. AFP