Mormon Church Fined By SEC

In recent news, the Securities and Exchange Commission has announced charges against Ensign Peak Advisers Inc., a non-profit entity operated by The Church of Jesus Christ of Latter-day Saints. Ensign Peak was responsible for managing the Church’s investments but was accused of failing to disclose the Church’s equity investments and instead filing forms for shell companies that obscured the Church’s portfolio. As a result, Ensign Peak misstated its control over the Church’s investment decisions, and the Church was charged for causing these violations.

To settle the charges, Ensign Peak has agreed to pay a $4 million penalty, while the Church has agreed to pay a $1 million penalty. This news highlights the importance of transparency and accountability in the world of finance, even for non-profit entities such as religious organizations.

Investors and the general public have the right to know how their money is being invested and managed. In the case of Ensign Peak and the Mormon Church, the charges brought by the SEC are a reminder that even non-profit organizations must be held accountable for their financial actions. It remains to be seen how this case will impact the Church’s reputation and future investments, but it underscores the need for all organizations to follow proper reporting procedures and act with integrity in their financial dealings.

In recent news, the Securities and Exchange Commission has announced charges against Ensign Peak Advisers Inc., a non-profit entity operated by The Church of Jesus Christ of Latter-day Saints. Ensign Peak was responsible for managing the Church’s investments but was accused of failing to disclose the Church’s equity investments and instead filing forms for shell companies that obscured the Church’s portfolio. As a result, Ensign Peak misstated its control over the Church’s investment decisions, and the Church was charged for causing these violations.

To settle the charges, Ensign Peak has agreed to pay a $4 million penalty, while the Church has agreed to pay a $1 million penalty. This news highlights the importance of transparency and accountability in the world of finance, even for non-profit entities such as religious organizations.

Investors and the general public have the right to know how their money is being invested and managed. In the case of Ensign Peak and the Mormon Church, the charges brought by the SEC are a reminder that even non-profit organizations must be held accountable for their financial actions. It remains to be seen how this case will impact the Church’s reputation and future investments, but it underscores the need for all organizations to follow proper reporting procedures and act with integrity in their financial dealings.

The Securities and Exchange Commission has ordered Ensign Peak Advisers Inc., a non-profit entity operated by The Mormon Church, to pay a $4 million penalty for failing to file Forms 13F between 1997 and 2019. Forms 13F are required for investment managers to disclose the value of certain securities they manage. The Mormon Church, which had a portfolio valued at approximately $32 billion by 2018, was reportedly concerned that disclosing its portfolio would lead to negative consequences.

To avoid this, Ensign Peak allegedly created thirteen shell LLCs with locations throughout the U.S. and filed Forms 13F in the names of these LLCs instead of Ensign Peak’s name. Ensign Peak retained control over all investment and voting decisions, despite the LLCs’ Forms 13F stating that they had sole investment and voting discretion over the securities. The SEC’s order finds that Ensign Peak maintained investment discretion over all relevant securities and directed nominee “business managers,” most of whom were employed by the Mormon Church, to sign the Commission filings.

The creation of shell LLCs to obscure the amount of the Mormon Church’s portfolio is a concerning practice that raises questions about transparency and accountability. While the Mormon Church may have had reasons for wanting to keep its portfolio private, Ensign Peak’s actions undermine the public’s trust in the organization’s financial practices. This case serves as a reminder of the importance of proper reporting procedures and acting with integrity in financial dealings, particularly for non-profit entities such as religious organizations. The SEC’s order against Ensign Peak and the Mormon Church’s $1 million penalty serves as a warning to all organizations to act in a transparent and ethical manner in their financial activities.

Religion and finance may seem like unlikely bedfellows, but the reality is that many churches have investment companies. One such example is the Mormon church, also known as The Church of Jesus Christ of Latter-day Saints. The question is, why would a church start an investment company? In this blog post, we will explore the history of the Mormon church, its assets, its profits from those assets, and the history of its investments to answer this question.

History of the Mormon Church

The Mormon church was founded in 1830 by Joseph Smith, Jr. in New York. Over the years, the church has grown into a global organization with more than 16 million members worldwide. The church’s teachings focus on family, community, and faith, with an emphasis on service and charity.

Assets of the Mormon Church

The Mormon church is known for its vast assets, which include real estate, businesses, and investments. According to a 2020 report by Bloomberg, the church’s assets are estimated to be worth over $100 billion. This includes an extensive real estate portfolio, including farmland, commercial and residential properties, and a massive ranch in Florida. The church also owns various businesses, including the Deseret Management Corporation, which oversees media, publishing, and insurance operations.

Profit from Assets

With such extensive assets, it’s not surprising that the Mormon church makes a significant profit from its investments. While the church does not disclose its financial statements, estimates put its annual income at over $7 billion, with a large portion of that coming from its investment portfolio.

History of Investments

The Mormon church has been investing for over 100 years. In the early 1900s, the church began investing in the sugar beet industry, which was a significant source of income for the church for many years. Over time, the church diversified its investments, moving into other industries such as real estate and media.

In recent years, the church has faced criticism over its investments. However, the church has defended its investments, stating that they are in line with its mission of promoting economic growth and creating jobs. Investing can provide financial stability for a church, but it can also lead to accusations of hypocrisy if the church’s actions do not align with its teachings.

One example of this is when a church misuses congregational funds, which can be a betrayal of trust for members who donate money with the expectation that it will be used for charitable purposes.

One high-profile case of this occurred in 2014 when a megachurch in Atlanta, Georgia, was accused of misusing funds. The church’s leader, Bishop Eddie Long, was accused of using funds from the church to support his lavish lifestyle, including buying a $1.4 million home and luxury cars. Long denied the accusations, but the scandal caused many members to leave the church and damaged its reputation.

In the case of the Mormon church and its investment company, some have criticized the church for investing in for-profit ventures like the City Creek Center shopping mall. Critics argue that this is at odds with the church’s teachings on modesty and the dangers of materialism. Some have also accused the church of using its investments to exert undue political influence.

investment companies can provide financial stability for a church, they can also raise questions about hypocrisy and accountability. It’s important for churches to ensure that their financial activities align with their teachings and that funds are used ethically and in the service of the community. By doing so, churches can build trust with their members and uphold their mission of service and charity.

Why Would a Church Start an Investment Company?

There are several reasons why a church might choose to invest its assets. First and foremost, investing can provide a steady source of income, which can then be used to support the church’s mission and charitable activities. Additionally, investing can help the church to diversify its assets and reduce risk. Finally, investing can be a way for the church to promote economic growth and create jobs in the communities where it operates.

The idea of a church having an investment company may seem unusual, but it’s clear that for the Mormon church, investing has been a vital part of its financial strategy for many years. With extensive assets and a commitment to promoting economic growth and charitable activities, the church’s investments are likely to continue playing an important role in its future success.