Judge dismisses lawsuit against Mormon church over how it uses donations

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Judge dismisses lawsuit against Mormon church over how it uses donations

2025-04-18 08:50 Last Updated At：09:01

A federal judge on Thursday dismissed a lawsuit alleging that The Church of Jesus Christ of Latter-day Saints arm misused hundreds of thousands of dollars in donations by investing it instead of using it for charitable purposes.

U.S. District Judge Robert Shelby said a three-year statute of limitations on fraud claims in Utah passed before the lawsuit was filed in October 2023. The judge also said the plaintiffs failed to adequately show how any fraud had occurred.

The legal action from a group of donors to the church brought renewed scrutiny over how the faith known widely as the Mormon church handles its vast financial holdings. Those holdings are bolstered by so-called “tithing” from church members who contribute 10% of their income.

The lawsuit was directed at business and investment entities under the church, which doesn’t publicly disclose details about its finances. Attorneys for the plaintiffs wanted an independent entity to oversee donated funds. They also sought class-action certification that could have brought millions of church members into the case.

Church spokesperson Sam Penrod said tithing donations are an “expression of faith” that allow it to fulfill its mission.

“These donations are carefully used and wisely managed, under the direction of senior Church leader,” Penrod said in an emailed statement. “The legal claims brought against the Church were rightfully dismissed by the court.”

Plaintiffs' attorney Christopher Seeger said the dismissal would make it harder for church members to understand how donations are used.

“For decades members of The Church of Jesus Christ of Latter-day Saints have contributed 10% of their hard-earned income as tithes, and they have the right to know how these donations are being used,” Seeger said.

A similar lawsuit was filed in federal court in California in 2021 by James Huntsman, brother of former Utah Gov. Jon Huntsman, Jr., who was seeking the return of $5 million he donated before he left the church. The 9th U.S. Circuit Court of Appeals in January upheld a lower court ruling that sided with the church.

At issue in the lawsuits was whether the church’s investments in stocks, bonds, real estate and agriculture reflect the wishes of its donors.

The U.S. Securities and Exchange Commission fined the church and subsidiary Ensign Peak Advisers $5 million in February 2023 for using shell companies to obscure the size of the investment portfolio under church control. The church agreed to pay $1 million and Ensign Peak will pay $4 million.

The church has previously defended how it handles member contributions, calling the fraud claims baseless and saying contributions go to a variety of religious purposes including missionary work, education, humanitarian causes and construction of churches, temples and other buildings important to church work.

The church's corporate arm, the Corporation of the President of the Church of Jesus Christ of Latter-day Saints, solicits donations for humanitarian relief with promises that all donations are used to help those in need.

But the Utah lawsuit argued that the church hid information that some, if not all, donations are permanently invested in accounts never used for charitable work. That includes tithes — regular donations amounting to 10% of a person’s income that are expected from church members. The money instead has gone to Ensign Peak Advisors, a nonprofit created in 1997 that has grown to over $100 billion in value, the lawsuit alleged.

Like the lawsuit filed by Huntsman, the case leaned on allegations by whistleblower David Nielsen, a former Ensign Peak investment manager who submitted a 90-page memorandum to the U.S. Senate Finance Committee demanding oversight into the church’s finances.

Details on his allegations were publicized by The Associated Press and other media organizations in late 2019 and early 2020, according to Thursday's ruling. Shelby said the plaintiffs in the Utah case should have been aware of the fraud allegations by early 2020, yet did not file their case for more than three years — too late for the statute of limitations.

Ensign Peak has spent funds only twice in its 26-year history, according to both lawsuits. In 2009, it spent $600 million to bail out a failing church-owned, for-profit life insurance company. Beginning in 2010 it put $1.4 billion to build a mall near Temple Square in downtown Salt Lake City.

Scottie Scheffler returns to hometown Byron Nelson, takes 1st-round lead with 10-under 61

2025-05-02 08:56 Last Updated At：09:02

McKINNEY, Texas (AP) — Scottie Scheffler is happy to be back at his hometown event and showed it.

Cameron Champ isn't far from familiar territory, either, which is a good thing considering he got the call that he was in the Byron Nelson as an alternate about 18 hours before his tee time.

Scheffler made the turn in 29 on his way to a 10-under 61 on Thursday for a two-shot lead over Rico Hoey and Jhonattan Vegas, with Champ among seven players another shot back at 64.

Defending champion Taylor Pendrith shot 67 with players allowed to lift, clean and replace their shots in the fairways after the par-71 TPC Craig Ranch got heavy rainfall Wednesday.

The top-ranked Scheffler outshined fellow hometown star Jordan Spieth with the former Texas Longhorns paired together along with Si Woo Kim, a South Korean who also calls Dallas home and was showcased in an event sponsored by CJ Group, a conglomerate based in his home country.

Kim shot 67, capping his round with a lofty chip-in for eagle at the par-5 18th and rolling onto his back in celebration. Spieth is 2 under. Vegas, another Texas alum, had a bogey-free round along with Scheffler and Hoey.

The others at 7 under with Champ are Stephan Jaeger, Michael Thorbjornsen, Eric Cole, Andrew Putnam, Patton Kizzire and Will Gordon.

Scheffler missed last year's event in Dallas' northern suburb of McKinney for the birth of his first child, son Bennett.

“Jordan and I love playing here. This tournament has meant a lot to us over the years,” Scheffler said. “Obviously last year I was missing for some pretty good reasons. I wasn't too sad about what was going on in my life at the time.”

Back then, he had 10 wins combined before May over a three-year stretch, including the Masters and Players Championship twice each. Now, Scheffler is still seeking the first victory of 2025.

Not that he was playing poorly before posting his lowest round of the year. Scheffler finished fourth as the defending champion at Augusta and has four other top-10 finishes this year.

“I wouldn't say anxious or eager, anything like that,” the 13-time winner said of seeking his first victory in 2025. “I got off to a pretty good start today, and there's three more days of the tournament. Just focused on going home and getting some rest.”

Scheffler birdied four consecutive holes on the front nine and added one more before putting his approach at the par-5 ninth inside 5 feet for an eagle to get to 7 under.

A chip for birdie stopped on the lip at the par-4 11th, the second of three consecutive pars before he pulled even with Hoey with a birdie at 13. Scheffler took the lead by putting his tee shot on the stadium hole — the par-3 17th — inside 3 feet.

Hoey, a 29-year-old from the Philippines seeking his first PGA Tour victory, started with eight pars on the back nine before an eagle on 18 triggered an 8-under finish over his final 10 holes. His 63 tied his career low on the PGA Tour. Hoey's best finish this year also was in Texas, a tie for 11th at the Houston Open.

“It’s been up and down, but from the start of the last season and comparing it, I think I’m doing a way better job,” said Hoey, who won on the Canadian tour in 2017 and the Korn Ferry circuit two years ago. “Just feel like there are rounds I’ve been clicking; other rounds I haven’t put it up. Kind of nice to get the momentum rolling now.”

Champ, who lives in Houston and played at Texas A&M, was home when he got the call that he was replacing Gary Woodland, who withdrew. He made it to the Dallas area Wednesday night and countered two bogeys in his first three holes with nine birdies.

The 29-year-old from California won three times from 2019-21 but missed 35 of 55 cuts over the previous two years. This is just his fourth start of 2025.

“Considering last year, how many cuts I missed by one, it was like 11 or 12 or something, I haven’t really been playing that bad,” Champ said. “The last two years is probably the hardest I’ve ever worked. Feel like my physical abilities are there. It’s just getting back to the right mental state.”

Spieth and Danny Walker had to pause to clean spikes after wayward tee shots into muddy territory. Walker's cleaning delay lasted several minutes, including others helping by splashing the soles with bottled water.

Walker, playing in the group ahead of Spieth, ended up with a bogey on the par-4 11th on his way to a 68. Spieth scrambled for a par-4 at No. 3 after barely missing the water while putting his tee shot in a waste area.

AP golf: https://apnews.com/hub/golf