Church comments on SEC settlement

[Kishkumen]

Dollars to donuts, the church paid more money in attorneys fees than the $5m settlement charges. Kirton McConkie is the real winner here.

Indeed. It is no wonder that corporations scoff when they get off so lightly. The damaging thing here is the clear evidence that the LDS Church breaks the law and operates dishonestly.

[Dr Moore]

Critics will make some hay over this. Church members will read the article and move on.

Regards,
MG

No doubt, MG. Sad, but true. The worst corruption occurs out in the open and almost no one cares.

Even the sinking Titanic had deniers until water floated over the deck.

[Kishkumen]

Indeed! And we have seen a lot of Titanics lately . . . ones that somehow have yet to sink under the weight of their publicly obvious abuses, corruptions, and criminal activity.

[Dr Moore]

Thanks very much for posting this, Dr. Moore—it’s absolutely devastating, and it confirms what many of us have long suspected: I.e., that the Church has a deep streak of greed running right through its core. How many faithful LDS have suffered, or died, or gone hungry while these Church-appointed financial managers were playing games with the books?

The ultimate motivation - fear of being noticed - is fundamentally a greedy one. Whether that greed be for holding up an unearned reputation, or to keep members in the dark so they’ll keep paying. Both of those greeds, by the way, are not my idea. They came straight out of the mouth of Roger Clarke (head of Ensign Peak) and Gerard Causse, Presiding Bishop.

[Dr Moore]

And the proprietor of SeN wonders why Mormonism is one of the most disliked religions.

After this, it is one step closer to Facebook level dislike & distrust.

[Poly G Porter]

Here’s the Deseret News article that goes into some depth:

https://www.deseret.com/u-s-world/2023/ ... -reporting

Critics will make some hay over this. Church members will read the article and move on.

Regards,
MG

Are you still drinking Iced Tea?

[malkie]

Dollars to donuts, the church paid more money in attorneys fees than the $5m settlement charges. Kirton McConkie is the real winner here.

Indeed. It is no wonder that corporations scoff when they get off so lightly. The damaging thing here is the clear evidence that the LDS Church breaks the law and operates dishonestly.

Not just the Church as an entity - as the OP points out, the top Prophets, Seers, and Revelators are dishonest.

Still, faithful members will find a way to deny and deflect - it's what they do - it's what I used to do

[Everybody Wang Chung]

Here are some comments from the D-News article:

Not leaving the good ship Zion, but, yes, very tired and disgusted with the corporate governance in the church. My married daughter has stopped paying their tithing over this type of thing, after also serving a mission and being married in the temple. Hopefully this business mindset in the church changes soon.

The D&C requires financial transparency but the church hasn't provided that in many decades. Until someone with knowledge informed the world that the church has well over $100B in just stocks alone, to go along with billions in property and other assets, we had no clue how wealthy the corporation had become.

I think most people find it absurd a church has so much wealth when poverty and homelessness increases every day. To make matters worse, they were illegally hiding the wealth, to the point that they were fined millions of dollars.
Yet they wonder why so many people are walking away.

The SEC order describes how Ensign used 13 shell companies to hide behind when disclosing its investments.
It used different senior church members' names in an effort to avoid all of the investments being listed in one place.

Members deserve better. When I think of tithing I think of how hard my parents work, and how they deprived themselves and family to pay tithing. This money should be treated with openness and honesty. Clearly, the church fell short.

If the apostles and prophet were relying on inspiration to guide them in these temporal matters, let alone the claim to guide all of us as they so often tout is their role, then how were they duped by mere low-level lawyers, obviously influenced in their judgment by a darkened and corrupt world, into going along with this deceptive scheme (for 20 years no less, until exposed by a whistle blower and not inspiration) to hide extreme wealth in shell companies? Wouldn't the spirit have guided them to avoid such a trap? How do we trust them now to guide us in the covenant path, when this nefarious revelation really puts a damper on that trust?

If divine inspiration were such a thing, I'm sure it would have been made known to these leaders. Alas, it's just a bunch of guys playing with money. That's all it ever was, and ever will be.

https://www.deseret.com/u-s-world/2023/ ... -reporting

[Dr Moore]

Timing-wise, Elder Hamilton's BYU devotional speech less than 1 month ago may go down as one of the top 10 all-time greatest backfires in church history.

https://speeches.byu.edu/talks/kevin-s- ... -a-church/

Could I suggest an alternative approach? Substitute the word Savior or Lord or Jesus Christ in place of “the Church” ...

Alright, Kevin. Let's give it a go.

https://www.sec.gov/news/press-release/2023-35

The SEC also announced charges against the Savior, Jesus Christ for causing these violations. To settle the charges, Ensign Peak agreed to pay a $4 million penalty and the Savior, Jesus Christ agreed to pay a $1 million penalty.
...
According to the order, the Savior, Jesus Christ was concerned that disclosure of its portfolio, which by 2018 grew to approximately $32 billion, would lead to negative consequences. To obscure the amount of the Savior, Jesus Christ’s portfolio, and with the Savior, Jesus Christ’s knowledge and approval, Ensign Peak created thirteen shell LLCs, ostensibly with locations throughout the U.S., and filed Forms 13F in the names of these LLCs rather than in Ensign Peak’s name.
...
“We allege that the Savior, Jesus Christ’s investment manager, with the Savior, Jesus Christ’s knowledge, went to great lengths to avoid disclosing the Savior, Jesus Christ’s investments, depriving the Commission and the investing public of accurate market information,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
...
the Savior, Jesus Christ agreed to settle the SEC’s allegation that it caused Ensign Peak’s violations through its knowledge and approval of Ensign Peak’s use of the shell LLCs.

Yikes!

But, it gets worse.

Read the full judgment: https://www.sec.gov/litigation/admin/2023/34-96951.pdf

https://www.sec.gov/litigation/admin/2023/34-96951.pdf

On November 6, 2015, the senior leadership of the Savior, Jesus Christ approved Ensign Peak’s plan for the creation of additional Clone LLCs to further prevent disclosure of the Savior, Jesus Christ’s holdings managed by Ensign Peak. Ensign Peak formed six additional Clone LLCs, bringing the total to twelve.
...
Ensign Peak had authority over all of the LLCs throughout their existence. the Savior, Jesus Christ also had indirect authority over all of these LLCs since the Savior, Jesus Christ controlled Ensign Peak and approved the approach of using the LLCs to file Forms 13F (the “LLC Structure”).
...
the Savior, Jesus Christ and Ensign Peak understood that Ensign Peak continued to make investment and voting decisions relating to the portfolio, and that the LLC Structure was created for the sole purpose of filing Forms 13F.
...
Violations: As a result of the conduct described above, the Savior, Jesus Christ caused Ensign Peak’s violations of Section 13(f)(1) of the Exchange Act and Rule 13f-1 thereunder.

Yeah, it's way worse thanks to Kevin's speech. Devastating. The Savior, Jesus Christ caused Ensign Peak to break the law. For 22 years until being caught.

[Everybody Wang Chung]