The two-sided piece of paper found in mostly automotive advertisements from newspapers, including Leith Ford, was from a group, identified as an Arkansas-based Ku Klux Klan organization.
The flier says the "attached newspaper/magazine" was for "weight purposes only" and "should not be considered an endorsement" of either the flier, or the KKK.
But Leith Ford's advertising agency, Sperry & Associates, still is not happy.
"It certainly would reflect on us, and that's exactly what we don't want because Leith has been around since 1969 and a very good citizen of this community," said Frank Maruca, a representative of Sperry & Associates.
Last week, someone left a similar flier inside advertisements at nearly 30 residences in a Clayton neighborhood.
In August, a similar incident occurred at a North Raleigh subdivision. When WRAL called the number listed on the flier, the person who answered the phone said an active member in the local community probably distributed them with newspapers picked up from a recycling or salvage yard.
It is unclear if any of the instances are connected.
Neighbors are disappointed someone would single their community out.
"I just don't believe in stuff like that and it needs to stop," said Amanda York, a Rockhurst Subdivision resident.
The FBI and local police agencies say that although residents may find the fliers to be distasteful, they are not illegal. Because there is no specific threat, the act is not considered to be a hate crime.
The News & Observer or Leith, however, could bring a civil lawsuit against the KKK for libel.
Last year, Raleigh police tried to charge someone with littering for distributing similar fliers, but a Wake County District Court judge dismissed the charge against the man, ruling the activity qualified as protected free speech.
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