The Ensign Peak Advisors management team includes Paul Davis (Chief Operating Officer), Anthony Kirkham (Vice President and Senior Portfolio Manager), and Jason Butterfield (Chief Compliance Officer) . Donate to the newsroom now. The document says Nielsen left a financially lucrative career to work for EPA because he believed it was a worthy cause and organization. When the Great Recession hit, however, officials said the church trimmed the budget rather than tap its reserves.". Neilsen's complaint claims Ensign president Roger Clarke has said the fund would be used should the second coming of Christ occur, while the Post reported that high-ranking cleric Bishop. Ensign Peak Advisors employs 11 employees. Software Updates. Roger served as a professor for more than ten years on the faculty of the Marriott School of Management at Brigham Young University. 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. Ensign Peak Advisors. . 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. 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. Editors note This story is available to Salt Lake Tribune subscribers only. Now he has a podcast about it. Number of pages: 22 Posted: 09 Sep 2013 Last Revised: 05 Mar 2014. 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 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. BYU Marriott School of Business. Harindra De Silva. To give a better overview of this topic, we're going to refer to the Salt Lake Tribune's coverage of the recent Wall Street Journal article by Peggy Fletcher Stack, because it covers some of the quotes from Mormon leaders along with Ensign Peak about the fund without getting as deep into the weeds as the WSJ article does. Ensign Peak Advisors. 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. 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. Ensign Peak Advisors ( email) 60 East South Temple 4th Floor Salt Lake City, UT 84111 United States. . (Illustration by Christopher Cherrington | The Salt Lake Tribune). About $3 billion of that came from combined shares of Apple and Microsoft, accounting for 7% of the funds total value. BYU Marriott School of Business. EPAs senior managers for years have regularly permitted large assets to simply disappear from EPAs books and have failed to apply basic internal controls to themselves.. A judge could issue a ruling any day in that appellate case. 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. 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 We covered this above so we won't rehash this much here. BYU Marriott School of Business. Ensign Peak Advisers, the non-profit that oversees the Church's portfolio, failed to comply with the regulator's disclosure rules by filing forms for shell companies that "obscured" the Church's investments, according to the SEC on Tuesday. Huntsmans lawsuit was thrown out in September of 2021. Keywords: factor investing, rules-based portfolios, quantitative portfolio management, Suggested Citation: . Manage Products and Account Information. That the church implies that they created over a dozen shell corporations because they were afraid members would either stop paying tithing or try to replicate their investment scheme is abhorrent just as the church hiding their true history from members even in the year 2020. Ensign Peak reported in June it held $18 million in the Saudi fund and $58 million in the India one. And as we're learning more and more each day, they are right to fear that, because if you're willing to approach their history and practices in the way you approach any other organization, product, or belief, you will realize that not only is the church demonstrably false, but it's actually not very good, either. The Mormon Church's investments weren't publicly disclosed until a former Ensign portfolio manager filed a whistleblower complaint in 2019, alleging that the massive fund doesn't engage in any charitable activities and shouldn't have tax-exempt status. Or how about the many active members who not only give 10% to the church, but contribute fast offerings each month (or more) only to find out that the church earns a million dollars on the gain alone every single hour, and yet instead of using it to help those in need, they ask you to contribute more instead of being selfish and using it for worldly things such as a family day out or a weekend trip with the kids. Steven Thorley And he suggested Congress and regulators have a duty to act upon the disclosures. Now the church in this case is saying that eventually they will use the money to fund church operations in the parts of the world where they are actually growing at a decent page (where there is a lack of access to Google to research their truth claims), but why would that be needed if paying tithing will bring them out of poverty as Prophet Russell M. Nelson declared to the members just last year? 1907, 7) I know some believing members will take offense at that characterization, but please tell me where I am wrong. A Salt Lake Tribune analysis shows the next highest concentrations of its investments beyond tech are in consumer goods, health care and financial sectors, each at stakes of between 12% to 15% of Ensign Peaks total value, for shares worth a total of $8.6 billion, $6.9 billion and $6.6 billion, respectively. At some point, saving needs to be converted into good works and charitable giving.. This big concession here is that the church admits they used this tax exempt fund to underwrite a for profit venture in the City Creek Mall and to rescue Beneficial Life, both of which were originally reported by the whistleblower. If the church truly believed what they were doing was true and good, they would be open and honest and tell every member to research their claims and hold them accountable. 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". Along with the quarterly SEC filings, EPA appears to be more recognizable as an institutional investor in public companies now. Just as in the Gospel Topics essay on Joseph Smith's polygamy, they are using carefully worded denials when they know full well that they are purposefully misleading their members (and the public) at best. View Roger G Clark's profile for company associations, background information, and partnerships. Its initial filing revealed EPA had $38 billion in stocks and mutual fundsat the end of 2019, including $1.5 billion in Apple and Microsoft. Beyond tech, Ensign Peaks top holdings read like a typical blue chip roster: J.P. Morgan, Merck, Berkshire Hathaway and Intel. In 2003, the lawyers assert, the church earmarked money for City Creek from Ensign Peaks investment gains. [4] In 1997, the investment division of the LDS Church was spun off into a separate legal entity named after Ensign Peak, a hill that overlooks Salt Lake City. When it does happen, we dont have any idea whether financial assets will have any value at all. Although Mr. Nielsen could have earned significantly more working for a traditional hedge fund, Mr. Nielsen accepted EPAs offer because he believed at that time that EPA actually supported the Churchs religious and charitable activities, the document states. It totaled nearly $50 billion as of June after gaining $3 billion in three months and adding nearly $12 billion since its first filing in early 2020 just before the U.S. onset of the coronavirus pandemic. State audit alleges former Cache County prosecutors misused public resources, had side contracts without countys knowledge, Utah flooding resource guide: What to do before, during and after a flood, former top manager-turned-whistleblower claimed it had amassed up to $100 billion, how it helped fund the City Creek Center mall, the reserves are intended to help pay for operations in poorer parts. Suggested Citation, 60 East South Temple4th FloorSalt Lake City, UT 84111United States, 555 West 5th Street50th FloorLos Angeles, CA 90013United States213-688-3015 (Phone)213-688-8856 (Fax), 616 TNRBBrigham Young UniversityProvo, UT 84602United States801-378-6065 (Phone)801-378-5984 (Fax), Subscribe to this fee journal for more curated articles on this topic, Finance Educator: Courses, Cases & Teaching eJournal, S&P Global Market Intelligence Research Paper Series, Subscribe to this free journal for more curated articles on this topic, We use cookies to help provide and enhance our service and tailor content. 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. Cookie Settings. 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. What member is going to be harmed by seeing that the church has a professionally run investment fund and then attempt to replicate it? View Roger Clarke's profile on LinkedIn, the world's largest professional community. Ensign Peak Advisors. Suggested Citation, 60 East South Temple4th FloorSalt Lake City, UT 84111United States, 555 West 5th Street50th FloorLos Angeles, CA 90013United States213-688-3015 (Phone)213-688-8856 (Fax), 616 TNRBBrigham Young UniversityProvo, UT 84602United States801-378-6065 (Phone)801-378-5984 (Fax), Mutual Funds, Hedge Funds, & Investment Industry eJournal, Subscribe to this fee journal for more curated articles on this topic, Capital Markets: Market Efficiency eJournal, Econometric Modeling: Capital Markets - Portfolio Theory eJournal, We use cookies to help provide and enhance our service and tailor content. The 2019 stories inReligionUnplugged.comandother outletsrocked both the investment world and the religion world, gaining hundreds of thousands of page views as readers were intrigued by the revelation of previously hidden church finances. It has shifted since mid-2020 into stocks in basic industries and capital goods that might expect to take off in an economic recovery. Ensign Peak Advisors. 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. Despite being among the worlds largest investment funds, the Salt Lake City firm functioned largely unseen until late 2019, when a former top manager-turned-whistleblower claimed it had amassed up to $100 billion, allegedly without its senior leaders telling much of anyone. I will never claim to speak for Jesus, but it's beyond clear that the leaders of this church never have either whether it's claiming God called the Native Americans Lamanites from Israel, that dark skin is a curse from God, or that God changed his mind in just 3.5 years on treating LGBT members as apostates. Please email us anytime at ldsdiscussion@gmail.com if you would like more resources to learn about these issues or if you are looking for people that you can safely talk to as you continue your faith journey. This page was processed by aws-apollo-l2 in. The church calling the fund a "rainy-day account" is also laughable, because we can see the devastation around the world every day. Roger Clarke, the head of Ensign Peak, said: 'Paying tithing is more of a sense of commitment than it is the church needing the money' Clarke and other officials say the money is saved. Harindra De Silva. Harindra De Silva. This is another area where the church is trying to obfuscate the problem of hoarding $124 billion in liquid assets while bailing out their own business ventures and not using any of it to help those in need. [4] As of February 2020, Roger Clarke is EP's Chief Executive Officer. . The Church of Jesus Christ of Latter-day Saints' has a $100 billion investment portfolio,according to a 13F form. All rights reserved. The complaint alleged thatEPA, a nonprofit registered as a 501(c)3 and a 509(a)3 supporting organization, did not make charitable distributions but that it did send $2 billion to help two for-profit companies. I mean it's just so nonsensical that I can't believe they even try that line of thinking, but when you're caught with your hand in the cookie jar you say whatever you can to get out of the situation. We include specific empirical results that can be replicated as an exercise in data collection, programming, reporting, and analysis. From the church's manual on honesty: "When we speak untruths, we are guilty of lying. This is no surprise, although I'd just note that if you've never looked at the Word of Wisdom, we covered their recent "Now You Know" video on the Word of Wisdom and you can see how silly the Word of Wisdom is not just in the actual revelation, but the implementation of it as well. Analytic Investors, Inc. Steven Thorley. And on to the article: "Latter-day Saint officials kept the size of the churchs $100 billion investment reserves secret for fear that public knowledge of the funds wealth might discourage members from paying tithing, according to the top executive who oversees the account. 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. 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. Get Contact Info for All Departments Ensign Peak Advisors Org Chart Paul Davis Chief Operating Officer 6 That result would also encourage fraudulent claims of exempt status within the tax-exempt sector generally, and by non-exempt religious organizations in particular.. Harindra de Silva. The Journal reported that employees of the firm sign lifetime confidentiality agreements and most current employees were no longer told the assets under management figures for the firm. That suggests a remarkable level of trust in church leadership, Sam Brunson, a professor of tax law at Loyola University in Chicago, told The Tribune, not just on spiritual/religious matters but also on more mundane secular matters.. EMEA +44 20 7330 7500. 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. Back to the article: Church leaders may be right to worry that the financial revelations could have a negative impact on tithe paying. 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. Instead we have talk after talk demonizing those with doubts, telling the poor that only tithing can get them out of the poverty cycle, and that they are as transparent as they know how to be. The portfolio has large positions in banking, business services and several hefty hedge funds. Court documents and Security and Exchange Commission filings shed additional light on how the church invests its money. And do not forget that Prophet Joseph F Smith said this about tithing at the 1907 General Conference: "Furthermore, I want to say to you, we may not be able to reach it right away, but we expect to see the day when we will not have to ask you for one dollar of donation for any purpose, except that which you volunteer to give of your own accord, because we will have tithes sufficient in the storehouse of the Lord to pay everything that is needful for the advancement of the kingdom of God." 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. 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. "In June 2019, the SEC first expressed concern about Ensign Peak's reporting approach," LDS said in a statement on Tuesday. , UT Previous President for Ensign Peak Advisors Inc (801)240-3053. The financial records destroy Huntsmans fraud claim, its lawyers argued in Aug. 31 court filings. 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. Of course the church (and church apologists) would reply that Joseph F Smith was speaking as a man in that instance, and that $124 billion in liquid assets is not "sufficient" for the church's needs. So they never wanted to be in a position where people felt like, you know, they shouldnt make a contribution, Clarke said.". "God promises great blessings to those who pay tithing. The Ensign Peak Advisors management team includes Anthony Kirkham (Vice President and Senior Portfolio Manager), Jason Butterfield (Chief Compliance Officer), and Roger Clarke (President). You also can support us with a donation at Patreon.com/mormonland, where you can access gifts and transcripts of our Mormon Land podcasts.]. sltrib.com 1996-2023 The Salt Lake Tribune. Back to the article: "Here are some other takeaways from The Journal story: Doctor Thorleys publications have been presented at academic and professional seminars around the world. Huntsman countered that tithing funds and earnings from those member donations were commingled at Ensign Peak. According to lead counsel for Mr. Nielsen, Michael A. Sullivan of Finch McCranie, LLP, the team representing Mr. Nielsen includes a former senior official of the SEC, more than one former federal criminal prosecutor, a former IRS Criminal Investigative Division agent, another former IRS official, and an international tax lawyer, all with decades of experience. Thank you for supporting local journalism. 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. According to the complaint, Ensign's president, Roger Clarke, has told others that the amassed funds would be used in the event of the second coming of Christ. We believe at some point the Savior will return. This page was processed by aws-apollo-l1 in 0.078 seconds, Using these links will ensure access to this page indefinitely. Jenna Ayala In concert with coauthors Steven Thorley and Harin de Silva they have published material over the years about the use of derivatives in investment management, low volatility portfolios, constraints and the fundamental law of active management, long/short portfolio construction, pure factor portfolios and efficient factor investing. Wait, what? The SEC's order said that. It shows up increasingly in reports and press releases from those publicly traded companies. 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.. "That same poverty continues from one generation to another, until people pay their tithing." 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