Mormon church fined $5M for obscuring size of portfolio

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Gunnar
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Mormon church fined $5M for obscuring size of portfolio

Post by Gunnar »

Mormon church fined $5M for violating federal SEC laws.
I was deeply disappointed to learn that the church leadership was not necessarily above breaking the law for its own benefit. I had always had the impression that, at least in modern times, they were more scrupulous about abiding by the law than most other religions -- especially more so than the most notorious televangelists.
“We allege that the LDS Church’s investment manager, with the Church’s knowledge, went to great lengths to avoid disclosing the Church’s investments, depriving the Commission and the investing public of accurate market information,” Gurbir S. Grewal, the agency's enforcement director, said in a statement.

The faith, widely known as the Mormon church, maintains billions of dollars of investments in stocks, bonds, real estate and agriculture. Much of its portfolio is controlled by Ensign Peak Advisers, a nonprofit investment manager overseen by ecclesiastical leaders known as its presiding bishopric.

The church has agreed to pay $1 million and Ensign Peak will pay $4 million in penalties based on the violation.

Federal investigators said for 22 years, the firm hadn’t filed required paperwork to disclose the value of some assets in violation of the Securities Exchange Act and agency rules.

Instead, they said, with the church’s knowledge, Ensign Peak filed the forms through 13 shell companies they created, even as they maintained decision-making power. They also had “business managers,” most employed by the church, sign the required shell company filings.

“The Church was concerned that disclosure of its portfolio, which by 2018 grew to approximately $32 billion, would lead to negative consequences,” the agency said in a statement announcing the charges.

Since a whistleblower alleged in 2019 the church had stockpiled nearly $100 billion in funds, rather than directing it toward charitable causes, Ensign Peak has been a source of intrigue and mystery for the nearly 17-million member Utah-based faith, which encourages members worldwide to give 10% of their income in a what is known as “tithing.”

Increasingly, the church and its investment arm have faced scrutiny over the fact that tax law largely exempts religious groups from paying U.S. taxes. Ensign Peak is registered as a supporting organization and integrated auxiliary of the church.

In a statement, church officials said over the time period investigated, none of their holdings had gone unreported and all had been disclosed through the separate companies. They said they had “relied upon legal counsel regarding how to comply with its reporting obligations while attempting to maintain the privacy of the portfolio" and noted that Ensign Peak had changed its reporting approach after learning of the SEC's concerns in 2019.

“We affirm our commitment to comply with the law, regret mistakes made, and now consider this matter closed,” they said.
No precept or claim is more suspect or more likely to be false than one that can only be supported by invoking the claim of Divine authority for it--no matter who or what claims such authority.
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Some Schmo
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Re: Mormon church fined $5M for obscuring size of portfolio

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Gunnar wrote:
Tue Feb 21, 2023 9:26 pm
I was deeply disappointed to learn that the church leadership was not necessarily above breaking the law for its own benefit. I had always had the impression that, at least in modern times, they were more scrupulous about abiding by the law than most other religions -- especially more so than the most notorious televangelists.
When I first started posting to a Mormon themed forum, one of the first topics I remember participating in was a discussion on how much the "prophet" and his "apostles" were aware that church was a fraud and how many really believed it. My view at the time was that the people in the highest positions were all in on the scam. At the very least, the prophet had to know it was BS after he picked up the direct line to his god for the first time as prophet and got no answer.

Others argued there were good people at the top and simply rationalized their membership in similar ways to everyone else.

These days, I think it's a mix of both. I'm sure there are church leaders who really believe their BS, but at least some of the people at the top have to be aware it's all BS, but they like the power and adulation they get in LDS circles, so they play along. It's the latter I'm sure have no problem taking the grift further.

So yeah, this article doesn't surprise me at all. What surprises me is that we don't see these kinds of stories more often.
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Dr. Shades
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Re: Mormon church fined $5M for obscuring size of portfolio

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Gunnar wrote:
Tue Feb 21, 2023 9:26 pm
I was deeply disappointed to learn that the church leadership was not necessarily above breaking the law for its own benefit. I had always had the impression that, at least in modern times, they were more scrupulous about abiding by the law than most other religions -- especially more so than the most notorious televangelists.
You may have been disappointed, but were you surprised?
"It’s ironic that the Church that people claim to be true, puts so much effort into hiding truths."
--I Have Questions, 01-25-2024
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Moksha
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Re: Mormon church fined $5M for obscuring size of portfolio

Post by Moksha »

The Church saw more benefit in being deceptive than being truthful. They justify not telling the truth with the doctrine of Lying for the Lord, which is chapter one of the Unwritten Rules.
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Dr Exiled
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Re: Mormon church fined $5M for obscuring size of portfolio

Post by Dr Exiled »

When someone or an organization believes that their opinions are the will of a god, then corners get cut, ends justify means, punishment calculations are made for proposed conduct, and illegal conduct then occurs. The Ford Pinto of the 70's with its exploding gas tank comes to mind. They didn't want tithing flows to lessen and so great lengths were used to keep the Fund value a secret:

https://www.wsj.com/articles/the-Mormon ... 1581138011
Mr. Clarke [Roger Clarke, head of Ensign Peak] said he believed church leaders were concerned that public knowledge of the fund’s wealth might discourage tithing.

“Paying tithing is more of a sense of commitment than it is the church needing the money,” Mr. Clarke said. “So they never wanted to be in a position where people felt like, you know, they shouldn’t make a contribution.”
Not surprised by their conduct and not merely disappointed. I'm more at a low anger level. I'm more upset for family that are still under these idiots' spell. And this rainy day bs is so silly it makes me even more angry. A rainy day fund would be 75% less. It's so they can get a bigger seat at the economic table and gain more power plain and simple. A $Trillion Fund will command a lot of respect and enable the idiots to have more of a say. Too bad the lowly member is considered as cattle or worker bees, without valid opinions.
Myth is misused by the powerful to subjugate the masses all too often.
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