SEC files raps vs KAPA execs

MANILA, Philippines — The Securities and Exchange Commission (SEC) filed criminal charges against officials of Kapa-Community Ministry International Inc. (KAPA) before the Department of Justice yesterday over an alleged investment scam.

Charged for violation of Republic Act 8799 or the Securities Regulation Code (SRC) were KAPA founder Joel Apolinario; his wife Reyna, KAPA corporate secretary; trustee Margie Danao, and officers Marisol Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista and Rene Catubigan.

The SEC said the KAPA officials violated Sections 8 and 28 of RA 8799.

Section 8 prohibits the sale or distribution of securities without a registration statement filed and approved by the SEC. 

Section 28 prohibits any person from engaging in the business of buying or selling securities as a broker or dealer or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.

The SEC said the KAPA officials also violated Section 26 of the law that prohibits Ponzi scheme – an investment program that offers impossibly high returns and pays investors using the money contributed by other investors.

KAPA should have obtained a license to sell securities, noting that the scheme of the organization involved the sale and offering for sale or distribution to the public of securities in the form of investment contracts as defined under Section 3 of  RA 8799, it said.

The agency said investigation showed that KAPA officials enticed the public to “donate” at least P10,000 in exchange for a 30 percent monthly “blessing” or “love gift” for life.

KAPA officials were also found to own nine luxury cars, sport utility vehicles and a helicopter. The group also claimed to have acquired a hospital, a school and other properties.

SEC chairman Emilio Aquino said KAPA “amassed wealth through an investment scam in the guise of religion and at the expense of the investing public.”

The SEC said it would name more respondents as it identifies other persons who have participated in the unlawful public offering and selling of securities of KAPA.  

It reiterated the government’s call for victims of the investment scam to file charges against KAPA officials.