The Justice Department is currently investigating whether leaders of the Black Lives Matter movement committed fraud against donors who contributed substantial amounts during the 2020 racial justice protests, according to multiple anonymous sources familiar with the situation. The federal inquiry has included subpoenas and at least one search warrant directed at the Black Lives Matter Global Network Foundation, Inc., along with other organizations that have played significant roles in raising awareness about systemic racism.
This investigation is raising new questions surrounding the financial practices of the movement, especially as it comes during the Trump administration, which has faced criticism for allegedly targeting progressive groups. The inquiry reportedly began during the Biden administration but has gained traction more recently. The probe is analyzing allegations regarding how the millions in donations received following the murder of George Floyd—a pivotal moment that triggered widespread protests—were utilized. Floyd's death, which occurred under the knee of a Minneapolis police officer in May 2020, resulted in an influx of over $90 million in donations to the BLM foundation.
Critics have expressed concern regarding the foundation's transparency in handling these donations, especially after accusations arose when leaders confirmed the purchase of a $6 million property in the Los Angeles area, which includes a lavish home with multiple bedrooms and bathrooms. Despite these controversies, the foundation maintains that it has not engaged in any wrongdoing and has publicly released tax documents to clarify its financial dealings. Previous investigations into the organization have not produced any evidence of improper activity.
The BLM foundation stated it is not the target of any federal criminal investigation and has expressed its commitment to transparency and accountability. Localized chapters of the BLM organization, which operate independently from the foundation, have previously clashed with it over the handling of donations, further complicating the financial narrative surrounding the movement.
The Black Lives Matter movement gained prominence in 2013 after the acquittal of George Zimmerman, who had fatally shot 17-year-old Trayvon Martin. It became a significant force for social change particularly after the death of Michael Brown, a Black man killed by police in Ferguson, Missouri, in 2014, with "Black lives matter" becoming a rallying cry for many activists. As the movement expanded, it gave rise to numerous organizations affiliated with BLM, with a significant portion of donations in 2020 being funneled to the BLM foundation.
The foundation disclosed its financial status in 2022, showing $28 million in assets for the fiscal year ending June 2024. The investigation is being led by the U.S. Attorney's Office for the Central District of California, based in Los Angeles. Bill Essayli, the top prosecutor involved, has faced scrutiny himself, having been determined by a federal judge to have overstepped his temporary role as U.S. attorney. Previously a Republican assemblyman, Essayli has expressed strong opinion against BLM, labeling it as a "radical organization."
State officials had previously threatened their own investigations into the foundation's finances in response to an increased public interest in transparency. However, many of these investigations were resolved without formal action. In 2022, Indiana Attorney General Todd Rokita filed a lawsuit against the BLM foundation, alleging lack of compliance with a financial investigation. The lawsuit was eventually dismissed after the foundation provided the required documentation.
