WASHINGTON, D.C., May 14, 2023 (Gephardt Daily) — The CBS news show “60 Minutes” tonight will interview David Nielsen, a former senior portfolio manager at Ensign Peak Advisors, following the $5 million penalty imposed on Ensign Peak and The Church of Jesus Christ of Latter-day Saints in February of this year.
The government penalty was for filing incorrect forms which “obscured the Church’s portfolio and misstated Ensign Peak’s control over the Church’s investment decisions,” according to a statement by the U.S. Securities and Exchange Commission.
The “60 Minutes” segment description says “60 MINUTES reports on the $100 billion fortune built by the secretive investment arm of the Church of Jesus Christ of Latter-day Saints, and a whistleblower’s allegation that instead of spending the money on good works, hundreds of millions were used to bail out businesses with church ties. Sharyn Alfonsi speaks with David Nielsen, a former senior portfolio manager at the church’s firm, about his role in a federal investigation and decision to come forward. Guy Campanile is the producer.”
The “60 Minutes” episode airs at 6 p.m. Sunday, tonight, on KUTV Channel 2.
SEC statement
The Securities and Exchange Commission statement released at the time says that rather than file the correct financial forms, “Ensign Peak maintained investment discretion over all relevant securities, that it controlled the shell companies, and that it directed nominee ‘business managers,’ most of whom were employed by the Church, to sign the Commission filings.”
The SEC investigation found that “Ensign Peak retained control over all investment and voting decisions.
The SEC statement quoted Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, as saying “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. The requirement to file timely and accurate information on Forms 13F applies to all institutional investment managers, including non-profit and charitable organizations.”
Church statement
The LDS Church released the following statement the same day, on Feb. 21 of this year. It does not elaborate on why “privacy” was a goal.
“The Church of Jesus Christ of Latter-day Saints and its affiliated investment manager, Ensign Peak Advisors, Inc., have settled a matter with the Securities and Exchange Commission.
“Investment managers who oversee a portfolio of public equities above a certain threshold are required to file Forms 13F with the SEC quarterly. These forms publicly disclose the names of the securities and their values.
“Since 2000, Ensign Peak received and relied upon legal counsel regarding how to comply with its reporting obligations while attempting to maintain the privacy of the portfolio. As a result, Ensign Peak established separate companies (LLCs) that each filed Forms 13F instead of a single aggregated filing. Ensign Peak and the Church believe that all securities required to be reported were included in the filings by the separate companies.
“In June 2019, the SEC first expressed concern about Ensign Peak’s reporting approach. Ensign Peak adjusted its approach and began filing a single aggregated report. Since that time, 13 quarterly reports have been filed in full accordance with SEC requirements.
“This settlement relates to how the forms were filed previously. Ensign Peak and the Church have cooperated with the government over a period of time as we sought resolution.
“We affirm our commitment to comply with the law, regret mistakes made, and now consider this matter closed.”
