By James A. Loyola
The Securities and Exchange Commission (SEC) has finally revoked the registration of Kapa-Community Ministry International, Inc. (KAPA) for unauthorized sale of securities that seems like a Ponzi scam.
In a statement, the SEC said KAPA’s registration was revoked by the Commission En Banc for “serious misrepresentation on what it can do or is doing to the prejudice and damage of the public.”
KAPA was found to be offering and selling securities, in the form of investment contracts and in the guise of donations, without the necessary license and in a manner resembling a Ponzi scheme.
Under the SEC Reorganization Act, the commission can revoke the certificate of incorporation on the ground of “serious misrepresentation as to what the corporation can do or is doing to the great prejudice of or damage to the general public.”
The Commission En Banc noted that, “Kapa in dealing with the public 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,” it added.
In its certificate of incorporation, KAPA is explicitly prohibited from undertaking business activities requiring a secondary license such as acting as broker or dealer in securities, investment house and close-end or open-end investment company.
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. (JAL)