SEC Letter

Documenting the Deception by the First Presidency of The Church of Jesus Christ of Latter-day Saints from 1997-2019

To be frequently updated with news and links to talks by leaders who participated in the deception

"Qualifying for exaltation demands personal accountability."

- President Russell M. Nelson, 2019

Mormon 8

35 Behold, I speak unto you as if ye were present, and yet ye are not. But behold, Jesus Christ hath shown you unto me, and I know your doing.

36 And I know that ye do walk in the pride of your hearts; and there are none save a few only who do not lift themselves up in the pride of their hearts, unto the wearing of very fine apparel, unto envying, and strifes, and malice, and persecutions, and all manner of iniquities; and your churches, yea, even every one, have become polluted because of the pride of your hearts.

37 For behold, ye do love money, and your substance, and your fine apparel, and the adorning of your churches, more than ye love the poor and the needy, the sick and the afflicted.

38 O ye pollutions, ye hypocrites, ye teachers, who sell yourselves for that which will canker, why have ye polluted the holy church of God? Why are ye ashamed to take upon you the name of Christ? Why do ye not think that greater is the value of an endless happiness than that misery which never dies—because of the praise of the world?

39 Why do ye adorn yourselves with that which hath no life, and yet suffer the hungry, and the needy, and the naked, and the sick and the afflicted to pass by you, and notice them not?

40 Yea, why do ye build up your secret abominations to get gain, and cause that widows should mourn before the Lord, and also orphans to mourn before the Lord, and also the blood of their fathers and their husbands to cry unto the Lord from the ground, for vengeance upon your heads?

41 Behold, the sword of vengeance hangeth over you; and the time soon cometh that he avengeth the blood of the saints upon you, for he will not suffer their cries any longer.

2 Nephi 28

11 Yea, they have all gone out of the way; they have become corrupted.

12 Because of pride, and because of false teachers, and false doctrine, their churches have become corrupted, and their churches are lifted up; because of pride they are puffed up.

13 They rob the poor because of their fine sanctuaries; they rob the poor because of their fine clothing; and they persecute the meek and the poor in heart, because in their pride they are puffed up.

14 They wear stiff necks and high heads; yea, and because of pride, and wickedness, and abominations, and whoredoms, they have all gone astray save it be a few, who are the humble followers of Christ; nevertheless, they are led, that in many instances they do err because they are taught by the precepts of men.

Calls for Accountability by President Nelson

"The very choices made by reason of agency limit one’s agency in the future. You cannot exercise agency and escape accountability and responsibility for each choice.

"Never forget that 'the rights of the priesthood are inseparably connected with the powers of heaven. … [This power] cannot be controlled nor handled [except] upon the principles of righteousness.' If we abuse that power to cover our sins, to gratify our pride, to pursue vain ambition, or to control others in any degree of unrighteousness, we lose both the authority and the power of the priesthood." - General Conference Priesthood Session, 2003

"President Russell M. Nelson taught that one’s ultimate ambition—living and progressing in the eternities with God and beloved family members—is achieved only when individuals exercise their personal agency and make individual covenants.

"Qualifying for exaltation demands personal accountability, he added." - The Church News' summary of President Nelson's 2019 Sunday morning General Conference talk

"Choice and accountability tells you that for every choice you make, you are accountable for the consequences of that choice. So we need to make responsible decisions." - From the February 2013 issue of Liahona

Overview

On February 21, 2023, the Securities and Exchange Commission (SEC) issued an order regarding a settlement with The Church of Jesus Christ of Latter-day Saints over an investigation of the Church's handling of its investment portfolio via a company named Ensign Peak Advisors (EPA).

EPA was controlled by the "Senior Leadership" of the Church, defined by the SEC as the First Presidency and Presiding Bishopric.

The highlights of the order include:

Starting in 1997 and continuing through 2019, the Church and its investment auxiliary (Ensign Peak Advisors) "failed to file with the Commission certain required forms (“Forms 13F”) that would have disclosed the size of the Church’s equity portfolio to the Commission and the public."
The Church used shell companies to hide the size of its portfolio and file untruthful reports with the SEC.
EPA had no authority to implement this approach without the explicit direction of the Senior Leadership.
The Senior Leadership was concerned about "negative consequences" if Church members were to find about the size of the portfolio.
The Senior Leadership went to increasingly great lengths to hide and obfuscate the wealth over the years, including having business managers lie on forms about their locations and the autonomy of the shell companies.
The Senior Leadership was advised by auditors and legal counsel about the problems with EPA's approach and decided to continue regardless.

Implications for the LDS Church

In Section 32.6 of General Handbook of the LDS Church, "serious sin" is defined. Among those sins included are fraudulent acts and violations of trust.

The SEC Order clearly details actions by the First Presidency and Presiding Bishopric that could be described as fraudulent and deceptive, and violations of the trust of the Church members.

Section 32.6 states that a membership council (formerly known as a disciplinary council) is "required" if a member commits a "serious sin." It is even noted that General Authorities are subject to a membership council if they violate trust.

Doctrine and Covenants 107:81-83 reminds us that no one, not even the president of the Church, is exempt from a membership council.

Doctrine and Covenants 121:37 says "when we undertake to cover our sins, or to gratify our pride, our vain ambition, or to exercise control or dominion or compulsion upon the souls of the children of men, in any degree of unrighteousness, behold, the heavens withdraw themselves; the Spirit of the Lord is grieved; and when it is withdrawn, Amen to the priesthood or the authority of that man."

Members of the First Presidency and Presiding Bishopric, from 1997-2019

Important Links

The SEC Order - This was released by the SEC on 2/21/23. It is important to understand that this order was negotiated by both the LDS Church and the SEC. Even though the Church is not admitting or denying the actions described in the letter, the "facts" were accepted by them and the SEC.

The Widow's Mite Report - A detailed look at the SEC Order by "current and former Church members, whose professional and educational backgrounds include business, finance, law, investment management, economics, journalism and history."

60 Minutes Episode - Aired on 5/14/23. Nothing groundbreaking here but a good overview from a source that is widely considered to be fair.

Red Handed! How the First Presidency Got Caught Breaking the Law - An interview by Radio Free Mormon of Accounting Professor Spencer Anderson, where they break down new insights from research by the Widow's Mite team.

The LDS Church's Press Release - The Church issued a press release which people should read and then compare to the SEC Order to decide for themselves how consistent they are with each other.

Mormon Stories Interview with Attorney Mark Pugsley - A great primer for those who want to understand the issues and put the SEC's actions in context. Pugsley specializes in whistleblower cases taken to the SEC. About three hours long, and fascinating for those who want expert insight. Here is the episode on the Mormon Stories site with more links.

The Ethics of the Ensign Peak Advisors - A discussion on Mormonism Live with Bill Reel and Radio Free Mormon. Link timestamped to start at the EPA discussion. The EPA portion is just under three hours.

Nemo the Mormon's Interview with Attorney Colby Reddish - Also a great primer and shorter, just over an hour long. Largely an overview of the SEC Order and some discussion at the end about holding Church leaders accountable.

Nemo's Public Letter for Stake Presidents - Nemo's open letter which he has provided for anyone to use to contact their leaders with concerns, and to urge them to take action.

/u/devilsravioli's (Reddit) Public Letter and Link - Another open letter, inspired by Nemo's, that can be sent to stake presidents. Also contains an appendix with a huge list of links talks.

Eloquent and compelling email sent out to all members of the Eagle Mountain, Utah stake

Links to the 13F fillings of the shell companies with the SEC.

The correct filings since 2020.

Overview on KUER's Podcast, RadioWest - A balanced discussion.

Rameumptom Ruminations podcast episode - When the Prophet Breaks the Law - takes a look at the story of Daniel and the lions' den and compares it to the SEC scandal.

Wall Street Journal article with Roger Clarke, who was the head of EPA in 2018 when the whistleblower exposed the fund. The full article is behind a paywall (the Salt Lake Tribune covered the article here) but here are a couple of quotes:

***"Mr. Clarke 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.'"

***"Whereas university endowments generally subsidize operating costs with investment income, Ensign Peak does the opposite. Annual donations from the church’s members more than covers the church’s budget. The surplus goes to Ensign Peak. Members of the religion must give 10% of their income each year to remain in good standing."

Mormon church invests billions of dollars while grossly overstating its charitable giving - A 2022 article from the Sydney (Australia) Herald detailing the claims against the Church. The Lead: "The church has amassed more than $100 billion in a tax-free fund that invests in multinational companies, as a former member describes it as a ‘business dabbling in religion’."

Memorandum submitted to the US Senate Finance Committee - Lots of insightful information about the Church's wealth.

Religion Unplugged's article about the Memorandum (Feb 2023) - "The new document alleges several new violations by EPA and its leaders." The article lists these new allegations: foreign accounts, deceptive statements, fraudulent SEC filings, and tax avoidance.

Relevant Links for Church Leaders Cited by the SEC

Deceive Me Not - Elder Gary E. Stevenson, Presiding Bishop 2012-15), in a talk in 2019: "As we obey God’s commandments, we will always be led in the right way and will not be deceived."

Brother's Keeper - Then-Elder Dallin H. Oaks (1986) in General Conference with damning quotes about his future actions:

"We live in a world where many look on the marketplace as a ruthless arena where the buyer must beware, where no one is obligated to do more than the law requires, and where fraud isn’t fraud unless you can prove it in court."

"The white-collar cousin of stealing is fraud, which gets its gain by lying about an essential fact in a transaction."

"Difficulties of proof make fraud a hard crime to enforce. But the inadequacies of the laws of man provide no license for transgression under the laws of God. Though their method of thievery may be immune from correction in this life, sophisticated thieves in white shirts and ties will ultimately be seen and punished for what they are. He who presides over that Eternal Tribunal knows our secret acts, and he is “a discerner of the thoughts and intents of the heart” (Heb. 4:12; D&C 33:1).

Is This Not the Fast That I Have Chosen? - President Henry B. Eyring spoke of caring for the poor in 2015, while the Church was actively investing billons of dollars: "You and I want that warm welcome from the Savior. But how can we deserve it? There are more hungry, homeless, and lonely children of Heavenly Father than we can possibly reach. And the numbers grow ever farther from our reach."

Three Towels and a 25-Cent Newspaper - Bishop Richard C. Edgley, Presiding Bishopric 1992-2012), in a talk in 2006: "Sadly, some of the greatest missing values in today’s world are honesty and integrity. In the past few years an increasing number of business leaders have been exposed for dishonesty and other forms of bad behavior.... Always this dishonesty and lack of integrity are based on greed, arrogance, and disrespect."

An Understanding Heart - An article from 2015 about Elder Gary E. Stevenson, who had just been released as Presiding Bishop. From the article: "One employee remembers what was in Elder Stevenson’s heart as a businessman: “We were discussing a difficult business decision. I told him we had to make sure to do what was legal. He told me we had to not only do what was legal but that we had to do what was right.”

“Letting good principles absorb you in business is good for business,” Elder Stevenson states. “Integrity, hard work, compassion, treating people with respect—and at the same time requiring accountability—are not precepts you talk about and practice only on Sundays. They are to be practiced every day of the week.”

The Spiritual Foundations of Church Financial Self-Reliance - From a 2018 address by Presiding Bishop Gérald Caussé, in which he quoted President Hinckley from 1997: "The money the Church receives from faithful members is consecrated. It is the Lord’s purse. … The funds for which we are responsible involve a sacred trust to be handled with absolute honesty and integrity, and with great prudence as the dedicated consecrations of the people.

“We feel a tremendous responsibility to you who make these contributions. We feel an even greater responsibility to the Lord whose money this is."

There is a companion article to this with a Q&A that contains numerous misleading statements.

Let Virtue Garnish Your Thoughts - Talk by Bishop H. David Burton (Presiding Bishopric 1992-1995, Presiding Bishop 1995-2012) in General Conference 2009: "We need only look around us to see what is taking place in our communities to realize that personal traits of virtue are in a steep decline.... As countries around the world face financial and economic challenges, fidelity and honesty seem to have been replaced with greed and graft."

"Brothers and sisters, we need not be a part of the virtue malaise that is penetrating and infecting society. If we follow the world in abandoning Christian-centered virtues, the consequences may be disastrous. Individual faith and fidelity, which have eternal consequences, will diminish. Family solidarity and spirituality will be adversely impacted. Religious influence in society will be lessened, and the rule of law will be challenged and perhaps even set aside."

Why the Church of Jesus Christ Manages Its Finances So Carefully - Interview with the Presiding Bishopric in 2019 about how tithing is handled. In light of the SEC Order, this video will make your stomach churn.

Other Relevant Articles, Links and Videos

Elder Neil L. Andersen met with Zimbabwe's vice president in 2018 and told him, "We want to help in every way we can. We are not a wealthy people but we are good people, and we share what we have"

Elder Ballard assuring the YSA at a 2017 devotional that he and then-Elder Oaks know the integrity of the First Presidency and "we’re as transparent as we know how to be in telling the truth. We have to do that. That’s the Lord’s way."

Teaching pamphlet for missionaries, telling potential members: "Tithing is the Lord’s law of finance for His Church. Tithing donations are always used for the Lord’s purposes, which He reveals through a council of His servants."

Like a Watered Garden, Elder Jeffrey R. Holland at General Conference in 2001: "pay your tithing as a declaration that possession of material goods and the accumulation of worldly wealth are not the uppermost goals of your existence." And, "pay your tithes and offerings out of honesty and integrity because they are God’s rightful due."

Tithing: A Test of Faith with Eternal Blessings, Elder Robert D. Hales at General Conference in 2002: "Tithing also teaches us to control our desires and passions for the things of this world. Payment of tithing encourages us to be honest in our dealings with our fellowmen. We learn to trust that what we have been given, through the blessings of the Lord and our own diligent efforts, is sufficient for our needs."

From the Ensign 2018

A diagram of how tithing is used. "At Church headquarters, the First Presidency, Quorum of the Twelve Apostles, and Presiding Bishopric are the Council on the Disposition of the Tithes (see Doctrine and Covenants 120). As directed by the Lord, they make inspired decisions on how these sacred tithing funds will be used."

Despite the fact that the Ensign article above claims that the Twelve Apostles are part of the Council on the Disposition of the Tithes, by scripture, they apparently were not included in how funds were invested. EPA Head Roger Clarke talked in 2019 about how Quorum President Boyd K. Packer was not allowed to know the size of the investment fund. Packer died in 2015, never knowing the amount of money the Church had invested.

Post on Reddit (3-13-23) about a stake's account being "cleaned out" by the Church. The youth had been raising and saving for a trip to Nauvoo. No word on what the Church planned to do with that money, or why it needed it at HQ.