The "Clan" was a hugh political movement prior to WWII. Most of the American male population were or had been members. In such states as Indiana the "Clan" controlled the state government from the governor down to local mayors. There were many items sold to this large market.
I've seen knives like that for years now. Case does deny it but it looks much liek many other limited run knives they have sold. So it's a toss up I guess. I do know as a Case collector that those knives while offensive are pretty high dollar collector knives. That leads me to believe that they did make it. It's just not in any books I've seen.
The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. Thomas Jefferson