Maybe he was a double agent. Informant for the FBI. He then acted as a Klansman for the KKK. He rose to a top rank, and was responsible for the inner working. He then laundered money for the Klan, while informing the FBI the who's, what's and when's. He then helped the community, so his business would look legit in the public's eyes, while he was laundering money for the Klan, and being an informant. This is all just a theory.

-Tahleel