Mormon Church Sued for Investing Tithing Money Instead of Using It for Charity

A federal lawsuit accuses The Church of Jesus Christ of Latter-day Saints’ investment sector of misusing hundreds of thousands of dollars donated by three men. 

The suit alleges the Mormon church invested the money instead of using it for charity as it promised. The accusations come as the church is already under fire for its handling of financial holdings provided by “tithing” from members who donate 10% of their income to the church, The Associated Press reports.

The problem lies in whether the church’s investments in bonds, real estate, stocks, and agriculture echo the donors' wishes. In a previous lawsuit filed in federal court in California by James Huntsman, the church was sued for using shell companies to hinder the size of the investment portfolio under the church’s control. 

The U.S. Securities and Exchange Commission fined the church and Ensign Peak $5 million. The church paid $1 million in February and Ensign Peak Advisors — the investment manager for the church’s assets — paid the remaining $4 million. 

The Corporation of the President of the Church of Jesus Christ of Latter-day Saints, the church’s corporate arm, obtained donations for humanitarian relief while promising the donations would be distributed accordingly, however, both the current and previous lawsuits provide evidence of the contrary. 

According to the most recent lawsuit, the church allegedly hid the fact that at least some, if not all, donations are invested in accounts not associated with charities. This money included tithes. 

It was revealed that the donated money instead went to Ensign Peak Advisors, according to the suit. 

Masen Christensen and John Oaks of Utah and Daniel Chappel of Virginia filed the newest lawsuit filed in Salt Lake City, Utah. The men said they have donated a combined nearly $350,000 to the church over the past 10 years. 

They’re seeking class-action certification — which could involve millions of church members — and an independent entity to oversee the collection and use of church donations. 

The lawsuit by Christensen and the other men relates to allegations made by whistle-blower David Nielsen, a former Ensign Peak investment manager.

Nielsen submitted a 90-page memorandum to the U.S. Senate Finance Committee demanding oversight into the church’s finances earlier this year.