The Department of Justice is now looking into how the Black Lives Matter Global Network Foundation (BLMGNF) handled the large amount of donations it received during the 2020 protests, according to reports.
The investigation, which started during the previous administration, is now being led by U.S. Attorney Bill Essayli.
Federal investigators are focusing on how the national organization used the money that came in after George Floyd’s death. They are trying to find out if any funds were used for personal benefit and if donors were misled about how their money would be spent.
Sources say that subpoenas have been given to leaders of the foundation, and at least one search warrant has been carried out recently. However, no criminal charges have been filed yet, and the investigation is still ongoing.
Tax records show that the BLMGNF had about $42 million in assets at the end of its 2021 fiscal year. By 2024, that number had dropped to $28 million, and revenue had fallen sharply from its 2020 peak to $6.8 million.
One of the most controversial expenses was the $6 million purchase of a luxury compound in Los Angeles in 2022. The foundation described the property, which has a six-bedroom house, pool, and guest house, as a “Black Joy House” for Black artists, activists, and content creators.
Patrisse Cullors, a co-founder of BLM who was the executive director until she resigned in May 2021, has also been under scrutiny for her personal real estate holdings. Public records show that Cullors acquired four homes worth a total of $3.2 million, including properties in Los Angeles and Georgia.
Cullors has denied any wrongdoing, saying that the criticism is a “right-wing attack” and that her departure was not related to financial issues.
Tax documents also show that millions were paid to consulting firms connected to BLM insiders, as well as large executive salaries.
While local BLM chapters have faced separate fraud convictions, including a Georgia activist sentenced to prison for misusing donations, those cases are not related to the national foundation.
Legal experts say that federal fraud investigations like this can take years to resolve. Potential charges could include wire fraud, mail fraud, or conspiracy, all of which could lead to significant prison time if proven.
The BLMGNF is still operating, but with much less money than it had in 2020. Its latest IRS Form 990 is expected to provide more information about how it has been spending its money.
This investigation raises important questions about accountability and transparency within organizations that receive large donations. It is crucial that funds intended for important causes are used responsibly and in accordance with donors’ expectations. The outcome of this investigation could have significant implications for the future of charitable giving and the public’s trust in non-profit organizations. It also highlights the need for careful oversight and responsible management of resources, especially when dealing with sensitive social and political issues.
