The federal prosecutors opened an investigation against the senior leadership of Black Lives Matter Global Network Foundation. This foundation is the fiscal sponsor for the Black Lives Matter Movement. They also investigated other Black advocacy groups who rose to prominence in the wake of George Floyd’s death and the subsequent nationwide riots.
A report by Fox News, citing sources with knowledge of the investigation, states that authorities are looking into whether or not the leaders misappropriated funds received from the $90,000,000 in fundraising they were able to secure for 2020. Fox News reported that the U.S. Attorney’s Office of the Central District of California, Los Angeles is leading the probe.
In recent weeks, investigators issued at least one subpoena and carried out a search warrant to try and determine if foundations or other organizations had improperly handled charitable funds.
Sources told the Associated Press that the investigation began during the Biden Administration but is now receiving renewed attention under the incoming Trump government. The outlet reported further that the investigation extends to organizations similar to those that became prominent during the 2020 riots.
As of this report there have been no criminal charges filed, but the scope of the entire investigation is still unclear.
In a press release to AP, the Black Lives Matter Global Network Foundation stated that they “are not a subject of federal criminal investigations” and remain committed to transparency.
After the huge fundraising success in 2020, Black Lives Matter Global Network Foundation has been under scrutiny for its financial management. Allegations of financial impropriety mainly involve co-founder Patrisse cullors, as well as other leaders. These allegations include claims of misusing funds for personal benefit, lack of transparent, and unequitable distribution of local chapters.
While the organization denies allegations of improper conduct, activists, former contributors and watchdog groups point out appearances of self dealing and poor management of charitable funds.
In October 2020, BLMGNF, after receiving a transfer of $66.5 Million from its fiscal sponsor, Thousand Currents, used donated funds to purchase a 6,500-square foot luxury property located in Studio City in Los Angeles for almost $6,000,000 in cash. This seven-bedroom house, internally dubbed the “Campus House”, features a soundstage and bungalow as well as multiple fireplaces.
Dyane Pascall, the financial manager of a consultancy run by Cullors, and Janaya Khan, her wife, purchased it through a Delaware LLC linked to the foundation.
BLMGNF described it as a “safe house” and creative space that Black artists, activists and influencers can use to promote racial injustice work. They also noted how few Black-led organisations own assets of this kind. Reports revealed that the property was only used for a few public media projects.
Cullors , who quit as executive director of the organization in May 2021 after a public scandal, confessed to having hosted at least two private events in her mansion. These included a 4-day stay at the house for an inauguration celebration with Biden and Harris, as well as a birthday party celebrating her son. The woman also admitted that she stayed overnights at the mansion for “safety purposes.”
She denied all allegations, saying that she had never lived on the property and derived any financial benefit. Disclosures were deemed “triggers” because of alleged threats. Cullors was Cullors brother Paul Cullors who handled the property security. His firm, which received $840,000 for services from BLMGNF, is responsible.
The National Legal and Policy Center filed a 2022 IRS complaint accusing Cullors and seeking penalties for improper personal usage.
