KAPA shuts down offices as scam victims demand return of their investments

SEC REVOKES KAPA REGISTRATION

sec

By ROGER M. BALANZA

The Kapa-Community Ministry International, Inc. (Kapa) has closed down its various offices in key cities and municipalities in the Caraga Region, Davao Region, Bukidnon and other parts of Southern Mindanao and the SOCCSKSARGEN area as  hundreds of victims of its investment scam demanded return of their investment.

SEC HUNTING DOWN KAPA FOUNDER, COORDINATORS, RECRUITERS

Kapa, founded by Pastor Joel Apolinario, lures the public with a 30 percent monthly return on investment. Apolinario is said to be subject of warrants of arrests for the Kapa scam in several courts in the Surigao provinces where it first  started operating few years ago.

The tsunami of investors demanding their money back developed as the Securities and Exchange Commission (SEC) issued another revocation order to Kapa, said to have fleeced thousands of victims in a scam reaching to billions of pesos.

The order covered the partners, officers, directors, agents, representatives and all other persons acting for and in behalf of Kapa.

Kapa’s other investment arms are the Kapa Kabus Padatuon (Enrich the Poor), Kapa/ Kappa (Kabus Padutoon), Kapa-Co Convenience Store and General Merchandise, and Kapa Worldwide Ministry

The  SEC earlier on February 14, also issued a cease and desist order against Kapa.

In its April 3 ruling, the SEC En Banc revoked Kapa’s  certificate of incorporation for engaging in unauthorized investment-taking scheme and  “serious misrepresentation on what it can do or is doing to the prejudice and damage of the public.”

The revocation of Kapa’s registration is an offshoot of the recommendation of the SEC Enforcement and Investor Protection Department to revoke Kapa’s certificate of incorporation “for offering and selling securities, in the form of investment contracts and in the guise of donations, without the necessary license.”

In its decision , the SEC En Banc  described the Kapa investment scam as similar to the Ponzi scheme which is outlawed by Section 6(i)(2) of Presidential Decree No. 902-A, or SEC Reorganization Act.

“Kapa is using its registration with the Commission as a religious corporation as a backdrop to solicit investments from the public knowing that it does not have the requisite registration. Such act is indicative of Kapa’s intent to deceive the public on what it can do or is doing to the damage and prejudice of the investing public,” the SEC En Banc said.

“Despite its lack of authority to offer and sell securities, Kapa recruited and encouraged members to ‘donate’ any amount in exchange for a 30 percent monthly return for life, without having to do anything other than invest and wait for the payout,” it said.

The SEC has advised  the public to report to its head office or extension offices any continued investment-taking activity by Kapa and its allied entities. 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s