A former senior portfolio manager who worked at the investment arm of the Church of Jesus Christ of Latter-day Saints alleges the firm masqueraded as a charity and violated its tax exempt status by directing funds built from member donations to bail out business with ties to the church.
David Nielsen filed a whistleblower complaint with the IRS in 2019. Nielsen says that during his nine years working at Ensign Peak Advisors, the value of the firm’s investments ballooned past $100 billion. In his first public comments, Nielsen told 60 Minutes the firm used false records and statements to appear as a charity, while stockpiling money and misleading the church members.
“I thought we were going to change the world,” Nielsen said. “And we just grew the bank account.”
Each year, the Church of Jesus Christ of Latter-day Saints collects an estimated $7 billion in contributions from its 17 million members. The church expects members to participate in tithing by contributing about 10% of their income. Tithing is used to pay the church’s bills and fund the church’s programs. Whatever is left over, about $1 billion a year, is put into a reserve fund at Ensign Peak and invested.
As a registered nonprofit, those investments grow tax free, Nielsen said. Since it was created in 1997, he says the fund has swelled beyond $100 billion.
“You could solve big problems with $100 billion,” Nielsen told 60 Minutes’ Sharyn Alfonsi.
David Nielsen and Sharyn Alfonsi
60 Minutes
Nielsen said he left Wall Street in 2009 to work at Ensign Peak because he wanted to work for what he thought was a charity. He recalled thinking he could use his skills to do good.
“And the funds were never used for that,” Nielsen said. “It was really a clandestine hedge fund.”
In 2013, one of Nielsen’s bosses shared a document at a meeting that showed $1.4 billion from Ensign Peak went to a mall being built on land owned by the church, the whistleblower said. Another $600 million was used to help prop up a for-profit, church-owned insurance company called Beneficial Life.
“Look, I’m not an expert on charities, but I’d been around the block enough to know that charitable organizations can’t bail out for-profit businesses and maintain their charitable status,” Nielsen said.
Christopher Waddell, one of three church bishops who oversee Ensign Peak, said David Nielsen’s allegations are “flat-out wrong.”
“The church actually owned Beneficial Life and fortunately the church had the resources to bail out Beneficial Life during the financial crisis, 2008, 2009,” he said.
Waddell said the money given to the mall project was an investment, on which the church was receiving returns. He declined to disclose details of the investments. Unlike other nonprofits, religious organizations do not have to fully disclose all financial information to the IRS. He declined to share the value of Ensign Peak’s assets with 60 Minutes.
“That’s something I can’t share with you right now,” he said. “I know there’ve been reports on approximates and that kind of thing, and that’s as far as we can go right now.”
The bishop said Nielsen didn’t have a full picture of church finances.
Bishop Christopher Waddell with Sharyn Alfonsi
60 Minutes
David Nielsen told us his breaking point came in 2018, when a website called “Mormonleaks” linked church members to companies that only existed on paper, Nielsen said. Those shell companies held billions of dollars in stocks and bonds, and were actually controlled by Ensign Peak.
Nielsen said the investment firm called an emergency meeting at which the chief investment officer said that if Ensign Peak were to start reporting the securities in the firm’s own name, it could cause problems..
“I knew in that moment that I was in the wrong place,” Nielsen said.
Nielsen resigned in 2019 and filed a whistleblower complaint with the IRS alleging that Ensign Peak violated its tax-exempt status by moving money to for-profit businesses. It wasn’t until 2021 that Nielsen heard from investigators, but they weren’t from the IRS, they were from the U.S. Securities and Exchange Commission. The SEC launched its own Ensign Peak probe after the “Mormonleaks” report linked the church to the shell companies.
In February, the SEC fined the Mormon church and Ensign Peak a total of $5 million for using shell companies to obscure the size of its investment portfolio. SEC investigators found the church “went to great lengths” to hide $32 billion in securities over nearly 20 years. It created 13 shell companies that were “assigned a local phone number that would go directly to voicemail” in case regulators checked in.
Waddell told 60 Minutes it was the church’s lawyers who advised the church and Ensign Peak to create the shell companies. He said it wasn’t about secrecy, but rather confidentiality.
“It’s confidential in order to maintain the focus on what our purpose is and what the mission of the church is, rather than the church has X amount of money,” Waddell said.
The status of the IRS investigation into the Mormon church and Ensign Peak isn’t clear. The IRS does not comment on whistleblower complaints, which can take an average of 11 years to be resolved. Nielsen felt it was time for him to speak out.
“We gave the IRS and the SEC all the professional courtesy,” Nielsen said. “This is just too important to fall through the cracks.”
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
