By Jeffrey Damicog
Kapa-Community Ministry International, Inc. faces a criminal complaint before the Department of Justice (DOJ) for allegedly engaging in an investment scam.
The Securities and Exchange Commission (SEC) filed Tuesday (June 18) the complaint which accused Kapa of violating Republic Act No. 8799, the Securities Regulation Code (SRC).
The SEC named as respondents in the complaint Kapa founder and president Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario, Marisol Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista, and Rene Catubigan.
“A person found to have violated the SRC, or the relevant rules and regulation promulgated by the SEC, will face a maximum fine of P5 million or imprisonment of seven to 21 years, or both,” the SEC said in a statement.
The SEC said that Kapa violated in Sections 8 and 28 of the SRC which disallows the sale of securities without prior registration and approval of the SEC.
“Those who sell or offer securities to the public without the necessary license may be held criminally liable and accordingly sanctioned or penalized pursuant to the decision of the Supreme Court in the case of the SEC vs. Oudine Santos on March 19, 2014 and within the definition of securities solicitation in the 2015 SRC Rules,” it stated.
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 other investors.”
“This qualifies as a fraudulent transaction prohibited under Section 26 (26.3) of the SRC,” it stated.
Under the scheme, the SEC explained Kapa “enticed the public to ‘donate’ at least P10,000 in exchange for a 30% monthly ‘blessing’ or ‘love gift’ for life, without having to do anything other than invest and wait for the payout.”