The Justice Department is looking into potential fraud by key figures in the Black Lives Matter movement who received substantial donations during the racial justice demonstrations of 2020, sources familiar with the matter revealed.
Federal authorities have recently issued subpoenas and executed at least one search warrant as part of an inquiry into the Black Lives Matter Global Network Foundation, Inc. and other Black-led groups that played a role in sparking a national conversation on systemic racism. The individuals disclosing this information chose to remain anonymous due to the ongoing nature of the criminal investigation.
While the possibility of criminal charges resulting from the investigation remains uncertain, its existence sheds light on a movement that has faced criticism for its lack of transparency regarding donation expenditure. The heightened investigative activity coincides with concerns raised by civil rights organizations about potential targeting of progressive and left-leaning groups critical of the previous administration, including those associated with Black Lives Matter, transgender rights, and anti-ICE protests.
Representatives of the Justice Department declined to provide comments on the matter when asked on Thursday.
Sources indicated that the investigation was initiated during the Biden administration and has garnered renewed attention under the current administration. Allegations were reportedly under scrutiny during the Biden era as well.
Following the tragic death of George Floyd in 2020, the foundation reported receiving over $90 million in donations, fueling widespread protests domestically and internationally.
Critics have accused the nonprofit foundation and the broader Black Lives Matter movement of lacking transparency in disclosing how funds were being utilized. The scrutiny intensified after the foundation leaders confirmed the purchase of a $6 million property in Los Angeles using donations. Despite prior denials of wrongdoing and public release of tax documents, no previous investigations into the foundation’s finances have uncovered any impropriety.
Leaders of the foundation have been served with subpoenas. In a statement to the Associated Press, the foundation asserted that it is not the subject of any federal criminal investigation and remains committed to transparent and responsible management of resources dedicated to advancing Black communities.
Originating in 2013 following George Zimmerman’s acquittal in the Trayvon Martin case, the Black Lives Matter movement gained prominence after the death of Michael Brown in Ferguson, Missouri, in 2014, propelling the slogan “Black lives matter” into a progressive rallying cry and a target for conservative criticism.
Initially envisioned as a decentralized organization governed by BLM chapters’ consensus, the movement expanded its influence, attracting numerous affiliated organizations. The influx of donations in 2020, post-Floyd protests, primarily benefitted the BLM foundation, with other groups also receiving support.
In 2022, foundation leaders disclosed financial details and organizational structures, revealing comprehensive expenditure breakdowns. The most recent Form 990 filing indicated that the BLM foundation held $28 million in assets for the fiscal year ending in June 2024.
The investigation is being conducted under the purview of the US Attorney’s Office for the Central District of California in Los Angeles. Bill Essayli, the top prosecutor, faced legal scrutiny this week for overstaying his temporary acting US attorney position but was allowed to continue leading the office under a different title.
Essayli, a former Republican assemblyman in California, has been vocal in conservative causes, criticising COVID-19 restrictions and advocating against state policies protecting undocumented immigrants. He has prosecuted individuals protesting Trump’s immigration enforcement aggressively.
Previously, as a private attorney, Essayli labelled BLM as a “radical organization” while representing a couple charged with a hate crime for defacing a BLM mural. The couple reached plea deals in 2022 to resolve the case.
During the peak of the racial justice reckoning following Floyd’s death, several state officials pledged inquiries into the foundation’s finances to safeguard residents who donated to BLM. However, most of these investigations concluded without official action.
Indiana Attorney General Todd Rokita filed a lawsuit against the BLM foundation in 2022 for non-compliance with a financial investigation. Subsequently, the foundation provided the necessary information, leading to the dismissal of the lawsuit.