SEC files criminal case vs Kapa execs for large-scale investment scam

SEC files criminal complaint vs Kapa execs for large-scale investment scam

/ 05:28 PM June 18, 2019

MANILA, Philippines – The Securities and Exchange Commission (SEC) on Tuesday filed a criminal complaint before the Department of Justice (DOJ) against Kapa Community Ministry International Inc. (Kapa) founder and President Joel A. Apolinario and its other officials for its involvement in an alleged large-scale investment scam.

Aside from Apolinario, facing a complaint for violation of Republic Act 8799 or the Securities Regulation Code (SRC) are trustee Margie Danao, corporate secretary Reyna Apolinario and officers Marisol Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista and Rene Catubigan.

The SEC alleged that Kapa violated Sections 8 and 28 of the SRC.


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


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

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

The SEC said Kapa has been enticing the public to invest in the guise of “donation” at least P10,000 in exchange for a 30 percent monthly “blessing” without doing anything except waiting for the payout.

However, the SEC said Kapa has no authority to sell or offer securities which is a violation of the law.

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,” said the SEC.


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

The SEC said it already issued an advisory against Kapa’s operations as early as March 2017 and also issued a cease and desist order last February and an order of revocation of the nonstock corporation’s registration last April.

The SEC said it will name more respondents as it identifies other persons who have participated in the unlawful public offering and/or selling of securities by Kapa.

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It also called on victims of Kapa to file charges against the group./ac

TAGS: Investment, KaPa, Ponzi scheme

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