SEC warns public anew re ‘KAPA revival’ posts
(The Freeman) - September 17, 2019 - 12:00am

CEBU, Philippines — The Securities and Exchange Commission (SEC) again sends out a warning to the public amid various social media posts announcing the relaunch of the operations of Kapa-Community Ministry International (KAPA).

The corporate regulator cautioned the public not to deal with any individual or groups representing KAPA amid claims on the supposed revival of the investment scam, under a new name KAPA Worldwide Ministry Association.

The Commission reiterates that KAPA Worldwide Ministry Association is not registered either as a corporation or as a partnership. Furthermore, no secondary license to solicit investments from the public was issued under such name.

Given its history of deceiving investors coupled with a pending criminal complaint against it and its officers and promoters, SEC said KAPA could have not successfully registered another corporation.

KAPA was formerly registered as a nonstock corporation, but its certificate of incorporation was revoked by SEC on April 3, 2019 for serious misrepresentation after it was found to have solicited investments from the public without securing a secondary license and in a manner resembling a Ponzi scheme.

KAPA allegedly schemed the public by encouraging investors to "donate" money in exchange for a 30% monthly “blessing” or “love gift” for life, without having to do anything other than invest and wait for the guaranteed return.

Section 8 of Republic Act No. 8799, or the Securities Regulation Code, provides that “securities shall not be sold or offered for sale or distribution within the Philippines,without a registration statement duly  filed with and approved by the Commission.”

Section 26 of the Securities Regulation Code further prohibits fraudulent transactions, including Ponzi schemes where investors are lured with impossibly high returns and paid using the money contributed by other investors Section 28 further states that no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.

Those acting as salesman, broker or agent may also be prosecuted and held criminally liable. They may also face a maximum fine of P5 million or imprisonment of 21 years or both, pursuant to Section 73 of the Securities Regulation Code.

On June 18, the Commission filed a criminal complaint against KAPA, its founder and president Joel A. Apolinario, trustee Margie A. Danao, corporate secretary Reyna L.  Apolinario and other promoters of the investment scam.

Those who have invested money in KAPA may file complaints with the SEC Enforcement and Investor Protection Department. (FREEMAN)

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