SCC v. COJCOLDS Settlement agreement

[Markk]

https://www.sec.gov/litigation/admin/2023/34-96951.pdf

This will take some time, but I will hopefully be able to break this all down and what it means.

I. The Securities and Exchange Commission (“Commission”) deems it appropriate that ceaseand-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Ensign Peak Advisors, Inc., and The Church of Jesus Christ of Latter-day Saints (“Respondents”).


II. In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the “Offers”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are admitted, Respondents consent to the entry of this Order Instituting Ceaseand-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as set forth below.

I'll start tonight. Note in bold above, that this is a negotiated settlement by both parties and will be crucial in remembering this as we go forward. Also in Bold the respondent beyond EP (Ensign Peak) is The Church...i.e. The Prophet and his Counselors and the Preceding Bishop Ric. This is equally important.

 

[Richard7]

Now if Markk wants to get into the non transparency of the Church which he will claim was for reasons that the Church was hiding the amount and how it was being spent. He will also want to condemn the Church for lying most likely, but where is the lie I will ask... at best a omission of data and facts. The consequences will be mostly decided by the members of the Church, either to stay or take a hike. Do they still have confidence in Leadership and their obedience to Christ or will this amount to thousand leaving for lack of confidence and doubt that Christ is still leading this Church... hmm.

 

[Markk]

Here, going in order, with the order. Ralf we will get to the summary in due time, which you obviously did not read.

" I. The Securities and Exchange Commission (“Commission”) deems it appropriate that cease and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Ensign Peak Advisors, Inc., and The Church of Jesus Christ of Latter-day Saints (“Respondents”)... ."

This is important and must be kept in mind when reading this negotiated order by both parties. The SCC lawyers and The Churches lawyers negotiated the verbiage of this order, words were chosen very carefully by both parties. It is important to understand when the order reads "respondent," it is referring to The Church.

The SCC...is settling with what appears to be two parties, Ensign Peak Adviser inc. (EPA), and The Church of Jesus Christ of Latter-Day Saints (The Church...i.e., for this thread, the first presidency and the presiding Bishop Ric). EPA is a Church owned and operated LCC as we will see as we go.

The Players...

Commision... The government agency.

EPA... Roger Clarke, Michael Conners... Directors. 1997-Current.

The Church...known as the "respondents."

1st Presidency

1997-2008..., Hinkley, Faust, Monson Eyring.

2008- 2018..., Monson, Eyring, Uchtdorf.

2018- current..., Nelson, Oaks, Eyring.

Presiding Bishop Ric

H. David Burton (1995–2012)	Richard C. Edgley (1995–2012)	Keith B. McMullin (1995–2012)
Gary E. Stevenson (2012–2015)	Gerald Jean Causse (2012–2015)	Dean Myron Davies (2012–2015)
Gerald Jean Causse (2015–present)	Dean M. Davies (2015–2020) W. Christopher Waddell (2020–present)	W. Christopher Waddell (2015–2020) L. Todd Budge (2020–present)

These men are privy too, and oversaw and developed Ensign Peak Advisors inc. In 1997, according to my understanding and research to date, stated the fund with about 7 billion dollars in 1997. The Council of the twelve, are/were not privy to this arm of the church, from what I have read so far.

Note...Eyring served in the Presiding Bishopric as 1st counselor, from 1985-1992. He has a deep background in big business. He has had deep ties to The Church's finances since 1985.

The order of cease and desist, is a order from the SCC to the Church, to basically stop what they are doing. Which I hope to explore, in order to the cease-and-desist order.

This is all coming out almost real time for me, so my takes and opinions may change a bit as I learn more.

 

[Richard7]

Here, going in order, with the order. Ralf we will get to the summary in due time, which you obviously did not read.

I love it when he makes it all about me... which I note is how one who is distracted obviously has to deflect away form their limited amount of objective non-sensical blabber...

" I. The Securities and Exchange Commission (“Commission”) deems it appropriate that cease and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Ensign Peak Advisors, Inc., and The Church of Jesus Christ of Latter-day Saints (“Respondents”)... ."

This is important and must be kept in mind when reading this negotiated order by both parties. The SCC lawyers and The Churches lawyers negotiated the verbiage of this order, words were chosen very carefully by both parties. It is important to understand when the order reads "respondent," it is referring to The Church.

Indeed Markk, a lot of Attorney verbiage for us who are limited in securities regulations and the art of professional double speak... so you finally get to the point your trying to make.... this is all referring to the Church and Ensign Peak and eventually you will point out that the dollar stops with the Prophet, Pres. Nelson... thx you Markk...

The SCC...is settling with what appears to be two parties, Ensign Peak Adviser inc. (EPA), and The Church of Jesus Christ of Latter-Day Saints (The Church...i.e., for this thread, the first presidency and the presiding Bishop Ric). EPA is a Church owned and operated LCC as we will see as we go.

Yes the summary pretty much spelled that out... thx again. LLCs are limited liability companies set up for the purpose of investing which Markk did not bother to describe...

These men are privy too, and oversaw and developed Ensign Peak Advisors inc. In 1997, according to my understanding and research to date, stated the fund with about 7 billion dollars in 1997. The Council of the twelve, are/were not privy to this arm of the church, from what I have read so far.

That is true, only the First Presidency is in the in.... so far so good Markk... This also includes the Presiding Bishopric I believe.

Note...Eyring served in the Presiding Bishopric as 1st counselor, from 1985-1992. He has a deep background in big business. He has had deep ties to The Church's finances since 1985.

The order of cease and desist, is a order from the SCC to the Church, to basically stop what they are doing. Which I hope to explore, in order to the cease-and-desist order.

This is all coming out almost real time for me, so my takes and opinions may change a bit as I learn more.

The church and its affiliate, Ensign Peak Advisors, Inc., adjusted their practices in 2019 after learning about SEC concerns and complied with rules that require them to disclose the church’s entire stock portfolio in a single set of quarterly filing forms, the SEC said. They are considered to be in complete compliance.
By Tad Walch
Feb 21, 2023,

 

[Markk]

II.....In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the “Offers”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are admitted, Respondents consent to the entry of this Order Instituting Ceaseand-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as set forth below.

"In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the “Offers”) which the Commission has determined to accept."

This means that all parties negotiated the words of this agreement, and the settlement as a whole. This is basically a plea bargain to keep this going to trial. Like all plea bargains, it is negotiated by the lawyers, with in the Churches case, their approval.

The LDS church agrees to everything within, no one forced them into this agreement.

..."Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are admitted,, Respondents consent to the entry of this Order Instituting Cease and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as set forth below. ..."

The Church cannot either deny or admit, or in other words state this order is false. If they do, they will then revoke the settlement and it could go back to the courts. The church agrees with this order.

 

[Magdalena]

Here, going in order, with the order. Ralf we will get to the summary in due time, which you obviously did not read.

" I. The Securities and Exchange Commission (“Commission”) deems it appropriate that cease and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Ensign Peak Advisors, Inc., and The Church of Jesus Christ of Latter-day Saints (“Respondents”)... ."

This is important and must be kept in mind when reading this negotiated order by both parties. The SCC lawyers and The Churches lawyers negotiated the verbiage of this order, words were chosen very carefully by both parties. It is important to understand when the order reads "respondent," it is referring to The Church.

The SCC...is settling with what appears to be two parties, Ensign Peak Adviser inc. (EPA), and The Church of Jesus Christ of Latter-Day Saints (The Church...i.e., for this thread, the first presidency and the presiding Bishop Ric). EPA is a Church owned and operated LCC as we will see as we go.

The Players...

Commision... The government agency.

EPA... Roger Clarke, Michael Conners... Directors. 1997-Current.

The Church...known as the "respondents."

1st Presidency

1997-2008..., Hinkley, Faust, Monson Eyring.

2008- 2018..., Monson, Eyring, Uchtdorf.

2018- current..., Nelson, Oaks, Eyring.

Presiding Bishop Ric

H. David Burton (1995–2012)	Richard C. Edgley (1995–2012)	Keith B. McMullin (1995–2012)
Gary E. Stevenson (2012–2015)	Gerald Jean Causse (2012–2015)	Dean Myron Davies (2012–2015)
Gerald Jean Causse (2015–present)	Dean M. Davies (2015–2020) W. Christopher Waddell (2020–present)	W. Christopher Waddell (2015–2020) L. Todd Budge (2020–present)

These men are privy too, and oversaw and developed Ensign Peak Advisors inc. In 1997, according to my understanding and research to date, stated the fund with about 7 billion dollars in 1997. The Council of the twelve, are/were not privy to this arm of the church, from what I have read so far.

Note...Eyring served in the Presiding Bishopric as 1st counselor, from 1985-1992. He has a deep background in big business. He has had deep ties to The Church's finances since 1985.

The order of cease and desist, is a order from the SCC to the Church, to basically stop what they are doing. Which I hope to explore, in order to the cease-and-desist order.

This is all coming out almost real time for me, so my takes and opinions may change a bit as I learn more.

So it was Hinckley who started it? And Nelson is perpetuating it.

 

[Markk]

Summary

From 1997 through 2019, Ensign Peak Advisors, Inc. (“Ensign Peak”), an entity which manages the assets, including the investment securities, of The Church of Jesus Christ of Latterday Saints (the “Church”), 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. Instead, the Church and Ensign Peak created thirteen limited liability corporations (“LLCs”), including twelve similar LLCs (the “Clone LLCs”) with addresses located throughout the U.S., for the sole purpose of filing Forms 13F and preventing public disclosure by Ensign Peak of the Church’s equity securities holdings. The Forms 13F that Ensign Peak filed in the names of these LLCs misstated, among other things, that they had sole investment and voting discretion over the listed securities, when Ensign Peak at all times retained discretion over all investment decisions. Ensign Peak developed its approach to filing Forms 13F in the names of these LLCs with the knowledge and approval of the Church, which sought to avoid disclosure of the amount and nature of its assets. Through their institutionalized use of this approach for almost twenty years, Ensign Peak’s significant role in the securities markets as an institutional investment manager was not disclosed to the Commission, the markets, and the investing public as required by Section 13(f) of the Exchange Act and Rule 13f-1 thereunder.

"...From 1997 through 2019, Ensign Peak Advisors, Inc. (“Ensign Peak”), an entity which manages the assets, including the investment securities, of The Church of Jesus Christ of Latterday Saints (the “Church”), 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..."

From my recent studies...the 13f form is a very basic form, every easy to fill out, and by law, must be filled out for any investment manager that manages 100 million or more dollars in the market. The form is only 3 pages, less the instructions, and the managers must at least sign the document after they or someone else fills it out.

Here is the form

Why is the 13f form necessary in the eyes of the SEC? It is a way for the public to track the big players in the markets. To see where the "Smart Monies " is being invested. It was created by congress, in hopes to provide transparency and confidence in an honest market. Smaller investors could use the "big boy" strategies in their investing portfolios. It has issues, because firms find loopholes and strategies to tilt the system their way, used as intended, it is to help insure an open and transparent market by keeping the big boys transparent. That is my understanding, so far. Anyone has access to these forms in that they are public knowledge and attended to be so.

It allows the SEC to monitor the larger players, avoiding huge market runs. Again, I am just getting into all this, so I allow room to edit and tweak as I go. But generally, I believe I am close.

This will unfold as we go forward. But where the church defrauded the SEC, is within the13F forms and how they were filled out and for what reasons...which I hope to dissect.

I will note this often, but EPA, is The Church...nothing was done by Ensign Peak, that The Church of the first presidency did not put their stamp of approval on, the buck stops with the prophet...in this case Hinkley, Monson, and Nelson. Roger Clarke is dirty in all this and plays a major role, as did Conners (I haven't read much on him yet). But in the end the SEC makes it clear in the order, and remember each word is negotiated by lawyers in this order, that "The Church" is the ringmaster in all this. Which it is important to note, while EPA is owned by the Church, the monies are church monies, the SEC fined both? Why? And again, the language is negotiated...so there is NO doubt who in the end is responsible.

 

[Markk]

So it was Hinckley who started it? And Nelson is perpetuating it.

Yes, from what I have read so far. Radio Free Mormon (RFM) is an attorney. In his podcast with a university of Illinois investment professor, made a great observation that really is telling, at least to me.

Why and how did Eyring get promoted up through the Ranks? He is not exactly a charismatic personality, or popular speaker. What is the common denominator is Eyring...he was a Businessman (airlines), highly educated in Business and a Lawyer. His resume is really strong. Keep in mind he was a counselor in the presiding Bishop Ric before EPA was formed as an LLC. He has deep history in all this.

The church is led by Nelson, who is a medical doctor with an early interest in business, and both his councilors are lawyers, Oaks and Eyring. I believe this is not by mistake. This issue is really showing how the church is one of the largest corporations in the world and ran by lawyers and businessmen.

Just think how much time and effort we put into our finances, and yet these men who claim to be apostles of Christ, are actually managing one of the largest portfolios in the world. It is just mind blowing as I dig into this.

 

[Richard7]

"In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the “Offers”) which the Commission has determined to accept."

This means that all parties negotiated the words of this agreement, and the settlement as a whole. This is basically a plea bargain to keep this going to trial. Like all plea bargains, it is negotiated by the lawyers, with in the Churches case, their approval.

Interesting, from going to court or that the church made a offering... hmmm

The church fully cooperated with SEC officials in active discussions with the commission and offered the settlement. SEC commissioners announced Tuesday it had settled charges by accepting the church’s offer and ordered the church and Ensign Peak Advisors Inc. to “cease and desist” the previous reporting practices they already had abandoned. The church and Ensign Peak have followed the correct filing procedure for 13 quarters now.

Ensign Peak will pay a $4 million penalty to the U.S. Treasury within 10 days. The church will pay $1 million.

The LDS church agrees to everything within, no one forced them into this agreement.

SEC commissioners announced Tuesday it had settled charges by accepting the church’s offer and ordered the church and Ensign Peak Advisors Inc. to “cease and desist” the previous reporting practices they already had abandoned.

..."Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are admitted,, Respondents consent to the entry of this Order Instituting Cease and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as set forth below. ..."

The Church cannot either deny or admit, or in other words state this order is false. If they do, they will then revoke the settlement and it could go back to the courts. The church agrees with this order.

Good so far....

 

[Richard7]

Yes, from what I have read so far. Radio Free Mormon (RFM) is an attorney. In his podcast with a university of Illinois investment professor, made a great observation that really is telling, at least to me.

Yep, RFM and still a member going around and finding fault with his church... yikes, the traders of those who are against Christ.

Why and how did Eyring get promoted up through the Ranks? He is not exactly a charismatic personality, or popular speaker. What is the common denominator is Eyring...he was a Businessman (airlines), highly educated in Business and a Lawyer. His resume is really strong. Keep in mind he was a counselor in the presiding Bishop Ric before EPA was formed as an LLC. He has deep history in all this.

The church is led by Nelson, who is a medical doctor with an early interest in business, and both his councilors are lawyers, Oaks and Eyring. I believe this is not by mistake. This issue is really showing how the church is one of the largest corporations in the world and ran by lawyers and businessmen.

Just think how much time and effort we put into our finances, and yet these men who claim to be apostles of Christ, are actually managing one of the largest portfolios in the world. It is just mind blowing as I dig into this.

What a great man...

President Henry B. Eyring was named first counselor in the First Presidency of The Church of Jesus Christ of Latter-day Saints 3 February 2008. Previously, he had served as second counselor in the First Presidency to President Gordon B. Hinckley since 6 October 2007. He was named to the Quorum of the Twelve Apostles of The Church of Jesus Christ of Latter-day Saints on 1 April 1995, having previously served as a member of the Seventy since 3 October 1992.

President Eyring previously served as first counselor in the Presiding Bishopric from April 1985 to September 1992 and as Church commissioner of education from September 1980 to April 1985 and also September 1992 to January 2005.

President Eyring was president of Ricks College in Rexburg, Idaho, from 1971 to 1977. He was on the faculty at the Graduate School of Business at Stanford University from 1962 to 1971.

He holds a B.S. degree in physics from the University of Utah and master of business administration and doctor of business administration degrees from Harvard University.

Born in Princeton, New Jersey, 31 May 1933, he has served the Church as a regional representative, a member of the general Sunday School board and a bishop.

 

[Magdalena]

Yep, RFM and still a member going around and finding fault with his church... yikes, the traders of those who are against Christ.



What a great man...

President Henry B. Eyring was named first counselor in the First Presidency of The Church of Jesus Christ of Latter-day Saints 3 February 2008. Previously, he had served as second counselor in the First Presidency to President Gordon B. Hinckley since 6 October 2007. He was named to the Quorum of the Twelve Apostles of The Church of Jesus Christ of Latter-day Saints on 1 April 1995, having previously served as a member of the Seventy since 3 October 1992.

President Eyring previously served as first counselor in the Presiding Bishopric from April 1985 to September 1992 and as Church commissioner of education from September 1980 to April 1985 and also September 1992 to January 2005.

President Eyring was president of Ricks College in Rexburg, Idaho, from 1971 to 1977. He was on the faculty at the Graduate School of Business at Stanford University from 1962 to 1971.

He holds a B.S. degree in physics from the University of Utah and master of business administration and doctor of business administration degrees from Harvard University.

Born in Princeton, New Jersey, 31 May 1933, he has served the Church as a regional representative, a member of the general Sunday School board and a bishop.

Business degrees seem to be the common denominator. No fishermen or carpenters.

 

[Richard7]

Business degrees seem to be the common denominator. No fishermen or carpenters.

Unlike the teachers and Pastor with their Theology Degrees which hence gives them authority? .... hmmm

 

[Magdalena]

Unlike the teachers and Pastor with their Theology Degrees which hence gives them authority? .... hmmm

At least it’s related to religion, not how to run a business.

 

[Richard7]

At least it’s related to religion, not how to run a business.

Yep, and Ensign Peaks does the investing by permission of the First Presidency who are busy preaching the Gospel of Christ.

 

[Magdalena]

Yep, and Ensign Peaks does the investing by permission of the First Presidency who are busy preaching the Gospel of Christ.

The First Presidency signs off on every action. They’re running it.

 

[Markk]

Business degrees seem to be the common denominator. No fishermen or carpenters.

Two of the top three leaders of the church in the 1st presidency are lawyers.

In the twelve, two are lawyers, and six have degrees or deep ties in business...only Holland has a degree in religion of all 15. Bednar was a professor of Business management a Texas tech.

They just appointed a new church historian, yes, a lawyer, with no History degree.

No matter what, unless they make a drastic change, the 1st presidency has to oversee the management of Billions and Billions of dollars, they have too, there is just no way around it.

 

[Richard7]

The First Presidency signs off on every action. They’re running it.

They also depend a lot on the many Attorney they employ.... yes they were persuade to not disclose the amount of money in Ensign Peak or the
LLC they were put into.... bad advise and a honest mistake in going down this path of non-transparency...

 

[Magdalena]

They also depend a lot on the many Attorney they employ.... yes they were persuade to not disclose the amount of money in Ensign Peak or the
LLC they were put into.... bad advise and a honest mistake in going down this path of non-transparency...

Not a mistake. It was on purpose, because they thought people would stop paying tithing. The First Presidency is in control of it.

 

[Richard7]

Two of the top three leaders of the church in the 1st presidency are lawyers.

They may not be financial lawyers, I don't know for sure, but Eyeing was a business lawyer I believe.

In the twelve, two are lawyers, and six have degrees or deep ties in business...only Holland has a degree in religion of all 15. Bednar was a professor of Business management a Texas tech.

What is your point?

They just appointed a new church historian, yes, a lawyer, with no History degree.

True, and what is your point...

No matter what, unless they make a drastic change, the 1st presidency has to oversee the management of Billions and Billions of dollars, they have too, there is just no way around it.

Chuckle, they have Ensign Peak and smart financial investors...

The amount of corruption at Church HQ is practically nil. Financial scandals like those we see routinely in politics, business, non-profits, or independent mega churches are few and far between. The Church’s internal auditors are very good at what they do.

As members of the Church, we are proud of the fact that our endowment is world class. The Church sets a good example for all of us. We are in good company alongside wise financial stewards noted for their investment acumen in support of noble missions (Matthew 25:14–30). The Sovereign Wealth Fund Institute ranks the top 10 global endowments:

1. Ensign Peak Advisors
2. Japan Science and Technology Agency
3. Stanford
4. Harvard
5. Yale
6. Princeton
7. MIT
8. Lilly
9. NYU
10. Duke

 

[Magdalena]

They may not be financial lawyers, I don't know for sure, but Eyeing was a business lawyer I believe.



What is your point?





True, and what is your point...


Chuckle, they have Ensign Peak and smart financial investors...

The amount of corruption at Church HQ is practically nil. Financial scandals like those we see routinely in politics, business, non-profits, or independent mega churches are few and far between. The Church’s internal auditors are very good at what they do.

As members of the Church, we are proud of the fact that our endowment is world class. The Church sets a good example for all of us. We are in good company alongside wise financial stewards noted for their investment acumen in support of noble missions (Matthew 25:14–30). The Sovereign Wealth Fund Institute ranks the top 10 global endowments:

1. Ensign Peak Advisors
2. Japan Science and Technology Agency
3. Stanford
4. Harvard
5. Yale
6. Princeton
7. MIT
8. Lilly
9. NYU
10. Duke

You copied that from somewhere.