The Church of Jesus Christ of Latter-day Saints and its investment arm are paying $5 million in fines to the SEC

The Church of Jesus Christ of Latter-day Saints and its investment arm are paying $5 million in fines to the SEC for creating shell companies to hide their holdings from the public.

“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,” Gurbir S. Grewal, the agency’s enforcement director, said in a statement.

The church has agreed to pay $1 million and Ensign Peak will pay $4 million in penalties based on the violation.

Federal investigators said for 22 years, the firm hadn’t filed required paperwork to disclose the value of some assets in violation of the Securities Exchange Act and agency rules.

“The Church was concerned that disclosure of its portfolio, which by 2018 grew to approximately $32 billion, would lead to negative consequences,” the agency said in a statement announcing the charges.

“We affirm our commitment to comply with the law, regret mistakes made, and now consider this matter closed,” the Church said.