Judges Revive James Huntsman’s Fraud Lawsuit Against Mormon Church | Ep. 1796

Federal Court Revives James Huntsman's Fraud Lawsuit Against the LDS Church: What the Ninth Circuit Decision Means

In August 2023, a three-judge panel of the United States Court of Appeals for the Ninth Circuit issued a decision that sent ripples through both the Mormon community and legal circles: they revived James Huntsman's fraud lawsuit against the Corporation of the President of The Church of Jesus Christ of Latter-day Saints. The case centers on allegations that church leaders knowingly misrepresented whether tithing funds were used to finance the City Creek Center mall development in Salt Lake City. For members and researchers seeking to understand the documented record of the church's financial practices, this ruling represents a significant moment when courts determined that fraud claims, at least regarding concrete financial representations, deserve a jury trial.

Huntsman, a lifelong member from a prominent Mormon family, donated tithing funds throughout his adult life based partly on church assurances that such contributions would not fund the City Creek project. According to the Mormon Stories Podcast episode covering this decision, the case hinges on a straightforward question: did church officials deliberately misstate the funding source, or were their public statements accurate?

Background: From Tithing to City Creek

To understand this lawsuit, one must trace the financial architecture that allegedly moved tithing funds into a commercial development project. Huntsman's case emerged from documented transfers that occurred beginning in 2003, the same year President Gordon B. Hinckley publicly announced the City Creek Center project.

The crux of the dispute involves Ensign Peak Advisors (EPA), the church's investment arm that receives and manages tithing contributions. According to court documents and reporting on the case, EPA transferred approximately $1.6 billion, eventually totaling $1.68 billion with interest, into a subsidiary entity called Property Reserve, Inc. These funds then flowed into the City Creek development.