SEC raises alarm over growing investment scams perpetuated by religious groups

MANILA, Philippines — The Securities and Exchange Commission (SEC) has raised the alarm bells over the apparent growing number of investment scams perpetuated by religious leaders.

SEC chairperson Emilio Aquino noted the increasing number of organizations in the Philippines that are claiming to be religious institutions. He said these organizations entice members to join their group and seek investments from them.

Aquino cited Kapa-Community Ministry International Inc. (KAPA) as the biggest investment scam to hit the country in recent years.

KAPA is already estimated to have pooled around P50 billion from around five million members who are required to make a minimum investment of P10,000.00.

It was registered as a non-stock organization founded by pastor Joel Apolinario. It has been recruiting members and enticing them to make a “donation” in exchange for huge returns.

The organization would need a monthly payout of P15 billion to fulfill its promise of providing a monthly return of 30 percent to investors or P180 billion a year, according to SEC estimates.

This is not mathematically sustainable, said Aquino.

“KAPA is running a scam...We have to put a stop to it otherwise there will be more victims,” Aquino said.

The SEC has already revoked the certificate of incorporation of KAPA for serious misrepresentation.

The Court of Appeals, meanwhile, issued a freeze order on the bank accounts of KAPA.

Aside from KAPA, the SEC also issued an advisory against Munificence Ministry which represents itself as a non-profit organization and operating under the entity Interdenominational Evangelical Church Ministries Inc.

In its advisory, the SEC said the group has activities in Mindanao particularly in the cities of General Santos and Tagum and  is enticing the public through social media to invest by offering generous interest income.

The company offers investment to the public with “45 percent monthly payout, 45 percent lock-in four months.”

According to the SEC, Munificence is not authorized to solicit investments from the public.

“In view thereof, the public is advised to take the necessary precaution in dealing with the above-named entity and/or its representatives and to stop investing in this kind of investment activity,” the SEC said.