The Mormon Church, officially known as the Church of Jesus Christ of Latter-day Saints (LDS), and its investment firm will pay out US$5 million over claims they hid a huge cache of shares.
The LDS and its investment firm, Ensign Peak Advisers, used “shell” companies to hide a US $32billion stock portfolio, the US Securities and Exchange Commission (SEC) said.
Ensign Peak will pay a US $4 million penalty and the Church will pay US $1million.
Neither has admitted any wrongdoing.
“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 Grewal, director of the SEC’s division of enforcement, said in a statement.
The financial markets watchdog said the Church and Ensign Peak had used shell companies to conceal growing investments in shares, which had reached more than US $30billion in 2018, over fears that it could lead to negative publicity.
The SEC’s announcement provided a rare insight into how Ensign Peak allegedly sought to hide a significant part of the Mormon Church’s investments.
The Salt Lake City-based adviser, which was founded by the LDS in 1997, created 13 shell companies with locations throughout the US, the regulator said.
Between 1997 and 2019, the shell companies, rather than Ensign Peak, filed quarterly investment disclosures with the SEC, it added.
A shell company is an entity that does not have any active business operations. These types of companies can be used to disguise business ownership from regulators or the public.
The Church has more than 16 million members in more than 30,000 congregations across 160 countries.
Ensign Peak is thought to manage a total of at least US $100billion on behalf of the Mormon Church.
Asaase Radio 99.5 broadcasts on radio via 99.5 in Accra, 98.5 in Kumasi, 99.7 in Tamale, 100.3 in Cape Coast and on our affiliates Bawku FM 101.5 in Bawku, Beats FM 99.9 in Bimbilla, Somua FM 89.9 in Gushegu, Stone City 90.7 in Ho, Mining City 89.5 in Tarkwa and Wale FM 106.9 in Walewale
Tune in or log on to broadcasts online: www.asaaseradio.com, Sound Garden and TuneIn
Follow us on Twitter: @asaaseradio995
Live streaming: facebook.com/asaaseradio99.5. Also on YouTube: Asaase Radio Official.
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio
