Mormon Church and Affiliated Nonprofit to Pay $5 Million to Settle SEC Charges Over Disclosure Failures

The Church of Jesus Christ of Latter-day Saints and its affiliated nonprofit, Ensign Peak Advisers Inc., have agreed to pay $5 million to resolve Securities and Exchange Commission (SEC) charges. The allegations center on the church’s failure to disclose its relationship with shell companies used to manage its investments. The SEC alleges that from 1997 through 2019, Ensign Peak Advisers concealed the size of the church’s equity portfolio by funneling disclosures through 13 limited liability companies, including 12 “clone LLCs.”

The SEC’s order states that Ensign Peak Advisers failed to file required Forms 13F, which are mandated for investment managers to disclose the value of certain securities. Instead, the forms were submitted in the names of the shell companies, not Ensign Peak Advisers. The agency also claims the records incorrectly stated that the LLCs had sole investment and voting control, when in fact the nonprofit managed those decisions.

The SEC attributed the church’s actions to concerns over public reaction to the disclosure of its vast investment portfolio, which reached $32 billion in 2018. The agency emphasized that all institutional investment managers, including non-profit and charitable organizations, are required to file timely and accurate information on Forms 13F.

Ensign Peak Advisers agreed to pay a $4 million penalty, while the church contributed $1 million. SEC Director Gurbir Grewal stated that the church’s investment manager acted with its knowledge to avoid disclosure, depriving the public of accurate market information. The church has stated it “cooperated with the government” and considers the matter closed.

A church spokesperson, Chris Moore, explained that Ensign Peak relied on legal counsel since 2000 to comply with reporting obligations while maintaining portfolio privacy. The nonprofit established separate companies to file Forms 13F, believing all required securities were included in the filings. Moore noted that the settlement pertains to past filing practices and that the church has cooperated with authorities over time to resolve the matter.

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