James Colescott disbanded the Knights of the Ku Klux Klan, the second wave of the original Klu Klux Klan, in 1944.

The Klan fell out of public favor in the 1930s and withdrew from political activity. Grand Wizard Hiram Evans sold the organization in 1939 to Colescott, an Indiana veterinarian and Samuel Green, an Atlanta obstetrician, but they were unable to stanch the exodus of members. His association with Nazi sympathizer organizations, and Klan association with the 1943 Detroit Race Riot and other efforts to disrupt the American war effort during World War II scarcely improved the organization's image.

In 1944 the IRS filed a lien for $685,000 in back taxes against the Klan, and Colescott was forced to dissolve the organization.