MANILA, Philippines — The Securities and Exchange Commission (SEC) has moved a step closer to putting the officers and promoters of Kapa-Community Ministry International (KAPA) behind bars.
In separate informations filed with the Bislig City Regional Trial Court Branch 29, the Department of Justice (DOJ) accused KAPA of “willfully, unlawfully and criminally” engaging in the sale or offer for sale or distribution of securities to the general public without a registration statement duly filed with and approved by the SEC.
The DOJ charged KAPA founder and president Joel Apolinario, trustee Margie Danao and corporate secretary Reyna Apolinario of violating the Securities Regulation Code (src). It also indicted Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan for violating the src when they promoted KAPA.
If there is probable cause, the indicted officers and promoters may face arrest.
The SEC has verified that a warrant of arrest was issued by the Quezon City RTC on Dec. 2, 2019 against Fernandico.
Last June, the SEC filed a complaint against KAPA for the unauthorized sale or offering for sale or distribution of securities to the general public.
Acting on the SEC’s complaint, the DOJ issued a resolution in September, finding probable cause to bring charges against KAPA, affirming the findings of the SEC.
In its complaint, the SEC said KAPA enticed the public to invest at least P10,000 in exchange for a 30 percent monthly return for life, without having to do anything other than invest and wait for the payout.
The SEC also found KAPA to have employed a Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by later investors.
According to the src, securities shall not be sold or offered for sale or distribution within the Philippines without a registration statement duly filed and approved by the SEC.
The SEC, through the Anti-Money Laundering Council, also obtained a freeze order from the Court of Appeals to preserve assets linked to KAPA.
SEC chairperson Emilio B. Aquino said the SEC is committed to see the criminal proceedings against KAPA to the end.
“We will pursue everyone involved in the investment scam that played havoc with the future of our fellow Filipinos, including those who continue to attempt to perpetuate it,” Aquino said.