It went bankrupt in 2013 after being convicted of defrauding the government and the Norwegian Children and Youth Council by reporting grossly exaggerated membership figures in order to obtain public funding.
The police subsequently opened an investigation of the organisation and indicted ten of its key officials for fraud, embezzlement and money laundering.
SOS Rasisme faced strong criticism from the media in Norway and from all mainstream political parties over several years due to its dominance by the Marxist-Leninist-Maoist organization, Serve the People – The Communist League.
[9] On 9 September 2009, Norwegian radio station P4 ran a story claiming that five of the leaders of SOS Rasisme are also high-ranking members of a revolutionary Communist organisation called Tjen Folket ("Serve the People").
The treasurer of SOS Rasisme, Kjell Gunnar Larsen, denied any wrongdoing, and claimed that the probe carried out by LNU was part of an organised campaign by far-right groups.
The investigation found that about half of the people on the membership roster, which was used as a basis for calculating public funding, denied being members of SOS Rasisme.