Ensign Peak also has at least $1.3 billion in shares of oil and gas companies, even after dumping 44% of its stock in Exxon Mobil early in 2020. Number of pages: 22 Posted: 09 Sep 2013 Last Revised: 05 Mar 2014. Deceptive statements: Nielsens document states that EPA was deceptive in describing its assets to regulators even after the stories broke in 2019 and the firm came under national scrutiny. The investment activity has been the subject of some curiosity as to how an otherwise low-profile religious organization can amass such a massive portfolio. Just as every generation is told they are the chosen generation by the church's prophets, the carrot is always being dangled that time is running out in order to cultivate obedience. But when Clarke says the gains are "mainly from returns on existing investments," he is being careful not to say that those "existing investments" were made with tithing money. Church officials have said the reserves are intended to help pay for operations in poorer parts of the world and to see the 16.6 million-member faith through any economic downturns. Search our database of over 100 million company and executive profiles. Donate to the newsroom now. Isnt amassing wealth and then saving it the equivalent of burying talents, that Christ condemned in the biblical parable? Miner asked. Just last year, Prophet Russell M. Nelson did a worldwide speaking tour where he told members in Africa that only paying tithing can get them out of the cycle of poverty. 1907, 7) Analytic Investors, Inc. Steven Thorley. That case, brought by prominent former Utahn James Huntsman, sought at least $5 million in donations, interest and penalties, alleging the faiths top authorities fraudulently misled members about spending donations meant for spiritual endeavors on commercial projects instead. Ensign Peak, which manages $124 billion in investments cultivated from tithing funds, is admitting that the church doesn't tell its members about the fund because they know members aren't going to keep paying tithing if they knew the church is sitting on so much money that they could cover every administrative cost for the church with the yearly gains and still have billions left over in gains each year to grow the account. In the document, he estimates that his former employer has evaded payments of more than $20 billion in taxes and concealed foreign accounts that should total $2 billion in penalties. David Nielsen, the former Ensign Peak fund manager, said the tithing-fueled fund held at least $100 billion during his nine-year tenure there ending in 2019. Some of the stocks in which Ensign has invested millions include Apple Inc., Chevron Corp., Visa Inc., JPMorgan Chase, Home Depot, Amazon and Google, according to the article.". In 2003, the lawyers assert, the church earmarked money for City Creek from Ensign Peaks investment gains. There are few clues as to how directly involved church leaders are in Ensign Peaks moves, although officials over the fund have said they eschew debt in keeping with the faiths tenets and steer clear of investments Latter-day Saints consider objectionable, such as tobacco or gambling stocks. Though not named as parties, Ensign Peak Advisors and the words and actions of its senior managers were at the center of a high-profile lawsuit filed last March in U.S. District Court in California. . Roger has 1 job listed on their profile. Clarke, Roger G and de Silva, Harindra and Thorley, Steven, Primer on Factor Exposures and Payoffs (September 29, 2017). Not only is that statement simply untrue, it is beyond self serving for a man who knows the enormous amount of cash they are sitting on to tell those who do not have the means that they have to pay tithing in order to not just get out of poverty, but to enter the temple which they are told is essential to their salvation. Contact Us In several rounds of clashing court motions, the closely watched dispute led church attorneys to reveal innermost business details to a federal judge on some of Ensign Peaks biggest transactions including how it helped fund the City Creek Center mall in downtown Salt Lake City. The churchs governing First Presidency made up of church President Russell M. Nelson and his counselors, Dallin H. Oaks and Henry B. Eyring rejected any allegation of fraudulent behavior, insisting in a news release that the faith complies with all applicable law governing our donations, investments, taxes and reserves.. To receive the free newsletter in your inbox, subscribe here. . View Roger Clarke's profile on LinkedIn, the world's largest professional community. As for the idea that the $124 billion is for the years leading up to Jesus' return, I also think that is a ridiculous notion. Back to the article: Debates about Mormon finances and the question of transparency have persisted for decades but were triggered again in December by a whistleblower complaint filed by David Nielsen, a former portfolio manager with Ensign Peak, and reported by The Washington Post. Asia Pacific +65 6212 1000. For example, a combination of four fully invested factor sub-portfolios low beta, small size, value, and momentum captures less than half (e.g., 40%) of the potential improvement over the market portfolios Sharpe ratio. Since that time, 13 quarterly reports have been filed in full accordance with SEC requirements.". By clicking Sign up, you agree to receive marketing emails from Insider The Mormon Church and its investment adviser will pay millions to settle charges with the SEC. Obviously I no longer believe in the truth claims of the church after researching the historical and doctrinal topics, but I am still a member of record who has contributed to the church's wealth. For members of The Church of Jesus Christ of Latter-day Saints, tithing donating 10% of ones income to the faith is more of a sense of commitment than it is the church needing the money, Roger Clarke, head of Ensign Peak Advisors, which manages the denominations investing holdings, told The Wall Street Journal. Given the popularity of factor investing, also known as rules-based, smart beta, or simply quantitative portfolio management, a number of students and traditional equity analysts have asked for a primer to introduce basic terms, concepts, and calculation procedures. Roger Clarke, head of Ensign Peak (Wall Street Journal): "So they never wanted to be in a position where people felt like, you know, they shouldn't make a contribution". Ensign Peak, which manages $124 billion in investments cultivated from tithing funds, is admitting that the church doesn't tell its members about the fund because they know members aren't going to keep paying tithing if they knew the church is sitting on so much money that they could cover every administrative cost for the church with the yearly It had a $1.5 million stake in sports apparel maker Lululemon in early spring of 2019, but managers had drawn that down to $2,000 by the start of 2021. I feel terrible for the members who have been contributing their entire lives only to find out that not only did the church not need the money, but that they aren't even using it to help those in need. The head of EPA, Roger Clarke, indicated to the Journal that EPA is a rainy-day account to be used in difficult economic times. Some church leaders suggested the fund could be used in the event of an economic or financial crisis. The church contends this is not illegal and I am not a legal expert, but I can say it looks awful when a church uses a tithing investment fund to bail out its for profit ventures yet has never spent a dime to help those who truly need it. By 2003, Ensign Peaks assets had grown, according to court documents, though the church isnt publicly saying by how much. Originally I didn't plan on doing a write-up because it was all happening during the holidays and I just did not have time to write about it, but this past weekend's Wall Street Journal article really articulated what is so frustrating about the church's lack of transparency on finances, and what we've noted when looking at a lot of other troubling topics of Mormonism - they simply do not trust their members with honest, complete information on their history or finances. Check us out on Twitter or Facebook as well for future posts and updates, and thank you again for reading! Read the Wall Street Journal story. There are families that are struggling and continue to pay tithing because they were taught that the church needs it more than they do (and that the prosperity gospel will reward them with blessings to make up for it), and yet church leaders have been lying to every one of these families about the church's own means. The financial records destroy Huntsmans fraud claim, its lawyers argued in Aug. 31 court filings. Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. It's very similar to polls regarding impeachment - the more loyal you were to Donald Trump, the less likely you were to want witnesses or documents to be produced. The complaint added that Roger Clarke, the president of Ensign, claimed that the investment branch collected the funds in preparation for "the second coming of Christ." Visit Insider's homepage for more stories. Foreign accounts: EPA now admits having foreign accounts, after denying it under oath for 10+ years: Mr. Nielsens prior submissions demonstrated that EPA has falsely denied under oath each year since at least 2007 that EPA has long had foreign bank and investment accounts, estimated to exceed $9 billion and thus EPA is liable for FBAR (Report of Foreign Bank and Financial Accounts) penalties of more than $2 billion. BYU Marriott School of Business. Analytic Investors, Inc. Steven Thorley. As he grew disillusioned with leadership, the document says he eventually resigned on Aug. 29, 2019, and filed a document to the IRS Whistleblower Office in November of 2019. He has reported from dozens of countries for outlets ranging from The Wall Street Journal, The Washington Post, Der Spiegel Online and others. BYU Marriott School of Business. At some point, saving needs to be converted into good works and charitable giving.. The fund holds immense stakes of $400 million or more in household stocks like Home Depot, Disney and Johnson & Johnson while at times making lucrative quick trades in meme stocks such as GameStop and Tesla. We can prove that over and over again whether it's looking at DNA and the Book of Mormon, the Book of Abraham, or how Joseph Smith retrofitted the priesthood restoration or First Vision to establish authority. The Ensign Peak Advisors office is located above a food court in Salt Lake City and doesnt appear in the list of companies at that building lobby. And while that might not be against the law (there are questions of whether it's lawful to be tax exempt when you are not actively using the fund for charitable purposes), it is absolutely against their own definition of honesty. The Ensign Peak Advisors office is located above a food court in Salt Lake City and doesn't appear in the list of companies at that building lobby. Roger Clarke, the head of Ensign Peak, told the Wall Street Journal that the fund was an emergency account to be used in difficult times. You can Google patriarchal blessings about seeing Jesus before you die and read them, which is yet another example of why this church has no more connection to the divine (or revelation/discernment) than anyone else. I don't really know what more to say here, because Carolyn is actually doing something more in line with what the Bible teaches about helping those in need than the church that claims to speak for God. Ensign Peak Advisors Jan 1995 - May 2020 25 years 5 months . If the IRS and DOJ do not hold EPA and its management accountable, this case will erode respect for the tax laws and criminal statutes by every American and every other entity required to pay taxes. Back to the article: "The Journals exploration of church financial holdings included interviews with Clarke and top Latter-day Saint officials, including Presiding Bishop Grald Causs, the ecclesiastical leader who oversees the Utah-based faiths vast financial, real estate, investment and charitable operations. The document states in several places that Nielsen became more disillusioned over time as he worked at the firm and believed EPA was not using its resources for charitable, educational or religious purposes. Beyond question, Ensign Peak Advisors has the potential to earn big money on the churchs behalf. He urged the agency to strip the denomination of its tax-exempt status, saying Ensign may owe billions in taxes. Now he has a podcast about it. . The Church of Jesus Christ of Latter-day Saints' has a $100 billion investment portfolio,according to a 13F form. [4] As of February 2020, Roger Clarke is EP's Chief Executive Officer. We take seriously the responsibility to care for the tithes and donations received from members, the church statement said. David A. Nielsen, a former employee at EPA, says in the filing that the new memorandum contains more information than the document he submitted to the IRS Whistleblower Office in November of 2019 that was a placeholder submission and was given to ReligionUnplugged.com and other outlets by Nielsens twin brother, Lars Nielsen, in the fall of 2019. It has significantly upped those holdings since. Huntsman seeks to recover his tithing funds that were fraudulently obtained by the LDS Corporation, the lawsuit stated. The church responded that Nielsens assertions amounted to hearsay and supplied its own sworn statement from Clarke, who was president and managing director over Ensign Peak from its 1997 founding until he retired in May 2020. "Ensign Peak adjusted its approach and began filing a single aggregated report. This is a very interesting poll, because it implies that the more active in the church you are, the less transparent you want them to be. The 90-page memorandum obtained by ReligionUnplugged.com and embedded in this story summarizes evidence of false statements, systematic accounting fraud, private inurement violations of the Internal Revenue Code and other federal statutes and a Klein conspiracy by Ensign Peak Advisors, Inc. (EPA) and others.. He said "Paying tithing is more of a sense of commitment than it is the church needing the money. Carolyn Homer, a Latter-day Saint who lives in Virginia, told The Journal that after she heard about the money held by Ensign Peak, she resolved to tithe less and give more to other charities. So how does the church go from claiming $2 billion in donations over 34 years (which is overwhelmingly based on service hours that are converted to donation amounts) to $1 billion per year as church officials are claiming just months later? Former employees said the fund mushroomed from about $40 billion in 2012 to around $100 billion by 2019. And the concept of tithing in the Mormon church wasn't always like that and it was never supposed to be like that according to Prophet Joseph F Smith. Paul Glader is executive editor of ReligionUnplugged.com and a professor of journalism at The Kings College NYC. Ensign Peak Advisors ( email) 60 East South Temple 4th Floor Salt Lake City, UT 84111 United States. Although the stories broke in 2019, the continued coverage and fallout was included among the top 25 religion stories of 2020 by the Religion News Association. That might seem flippant to those who are active members, but the bottom line is that the survey referenced is making the point that the more entrenched in the church you are, the less transparent you want them to be. That result would also encourage fraudulent claims of exempt status within the tax-exempt sector generally, and by non-exempt religious organizations in particular.. . Why wouldn't more members want to be like Carolyn and donate their money to local causes that will actually use the money to help others? And the funny part about the quote is that many church leaders thought they knew when Jesus was coming back, but they just happened to be wrong. The portfolio has large positions in banking, business services and several hefty hedge funds. He has served as a member of the editorial boards of the Journal of Portfolio Management and the Financial Analysts Journal. BYU Marriott School of Business. Locations . This was approximately $2 billion to fund classic private interests., Senate Finance Committee - by Paul Glader. 72, No. Julia Miner, a retired tax attorney in the San Francisco Bay Area, is proud of her conservative Mormon tradition of frugality. A recent Tribune/Suffolk University poll revealed that while a majority of Utahns, from across the religious spectrum, support the idea of requiring tax-exempt religious organizations to publicly report their finances, barely a third of very active Latter-day Saints do. Keywords: Portfolio Theory, Factor Portfolios, Factor Investing, Portfolio Constraints, Smart Beta, Suggested Citation: If EPA were a hedge fund, itwould rank among the top five hedge fundsfor assets under management. That lines up with the information outlined from the 2009 release, and it also lines up with the church's announcement last year at General Conference that that have given $2 billion over 34 years through this fund. I know some believing members will take offense at that characterization, but please tell me where I am wrong. Do you really think when Jesus comes back to Earth that he's going to congratulate Russell Nelson on leaving those in need out to dry while accumulating a stock portfolio for his return? And when they get caught, they lie about why they withheld the information from these very members who are padding the account for them. He was a kid when the Swift raids split his family. Available at SSRN: If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Last, the church concedes the whistleblower was accurate when stating their yearly gains were about 7%, which is the benchmark rule of thumb for most investment plans. His document argues that EPAs tax avoidance gave it a distinct competitive advantage over other investment firms. The document alleges the firms cash-rich position and secretive, stable status made it a preferred investor in private equity institutions. Now, EPA has finally admitted in a recently published Form 990-T filing in November 2020 (for 2019) that EPA does have foreign bank and investment accounts. Nielsens document argues that EPA should be liable for more than $2 billion in penalties. For at least 22 years, EPA and certain senior executives have perpetrated an unlawful scheme that relies on willfully and materially false statements to the IRS and the SEC, so this for-profit, securities investment business that unfairly competes with large hedge funds can masquerade as a tax-exempt, charitable organization, the memorandum says. BYU Marriott School of Business. "These funds are then used to build up the Church and to further God's work throughout the world," LDS' website reads. From the church's manual on honesty: "When we speak untruths, we are guilty of lying. (In Conference Report, Apr. 6 (November/December 2016), Available at SSRN: If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. This is yet another rationale that is contradicted by their past actions, and they are only saying it to try and pacify members who are waking up to realize that this church is not only untrue, but not good, either. The SEC alleges that from 1997 through 2019 Ensign Peak failed to file 13F forms, which are documents that certain investment managers must disclose quarterly, listing the securities that they manage. Ensign Peak, Tithing, and Why the Church Claims They Hid it from Members (Feb. 10, 2020), Whenever we lead people in any way to believe something that is not true, That same poverty continues from one generation to another, until people pay their tithing, created a system of more than a dozen shell companies, earns a million dollars on the gain alone every single hour, Joseph Smith's implementation and use of polygamy and polyandry, Gospel Topics essay on Joseph Smith's polygamy, "Now You Know" video on the Word of Wisdom, Joseph Smith promising exaltation to marry the young daughters, shutting down questions about church history, God called the Native Americans Lamanites from Israel, God changed his mind in just 3.5 years on treating LGBT members as apostates, according to church historian Elder Marlin K. Jensen. Document alleges the firms cash-rich position and secretive, stable status made it a distinct competitive advantage other. 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