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Federal authorities have charged 68 members of a California-based white supremist street gang with crimes in an attempt to dismantle the organisation.

At least 42 members of the SFV Peckerwoods, which is based in the San Fernando Valley area of Los Angeles County, have been arrested so far.

The 76-count indictment includes charges of racketeering activity, drug trafficking – including fentanyl – possessing illegal firearms, and engaging in fraudulent Covid-19 benefits and loan fraud.

The US justice department says the Peckerwoods gang takes orders at times from the Aryan Brotherhood, a neo-Nazi gang based in California's prisons, and has an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California.

The Peckerwoods are accused of trafficking fentanyl and other drugs in the area, as well as committing robberies and financial fraud to fund their activities and help the Aryan Brotherhood, said US Attorney General Merrick Garland on Wednesday.

Members used iconography and tattoos, including that of swastikas, the symbol 88, which is code for “Heil Hitler”, and images of Nazi aircraft, to denote their ideology, the justice department says.

US Attorney Martin Estrada said the group was a "grave menace to our community" and a "destructive force".

Federal prosecutors say the group primarily trafficked narcotics that include fentanyl, heroin and methamphetamine. Members in the Hollywood area are accused of maintaining so-called stash houses where drugs were stored.

Several members are also facing charges of allegedly submitting false applications for the Payment Protection Program, a Covid-19 initiative that offered loans - many of which were forgivable - to keep small businesses afloat.

The justice department says the defendants face a maximum sentence of life in prison if convicted.