What Went Before: Investment fraud involving Kapa Community Ministry

In January this year, the Department of Justice (DOJ) filed charges against Kapa Community Ministry International (Kapa), its founder Joel Apolinario and officers in various courts after being tagged by the Securities and Exchange Commission (SEC) as a perpetrator of investment fraud.

Kapa, a religious corporation, has been accused of perpetrating a Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by other investors.The criminal proceedings stemmed from the complaint filed by the SEC on June 18, 2019, against Kapa for the unauthorized sale or offering for sale or distribution of securities to the general public.

President Duterte had advised the public against patronizing Kapa because the group was engaged in a continuing crime. He also ordered the police and the National Bureau of Investigation to arrest Kapa officials.

Kapa was enticing the public to invest at least P10,000 in exchange for a 30-percent monthly return for life, without having to do anything other than invest and wait for the payout, based on the SEC’s investigation.

In a filing at Bislig City Regional Trial Court (RTC) Branch 29 in Surigao del Sur, the DOJ accused Kapa of “willfully, unlawfully and criminally” engaging in the selling or offering for sale or distribution of securities to the general public without a registration statement duly filed with and approved by the SEC.

The SEC, through the Anti-Money Laundering Council, had obtained a freeze order from the Court of Appeals on June 4, 2019, to preserve assets linked to Kapa.

The SEC also said that the cease-and-desist order against Kapa became permanent in March 2019 and, as such, remained in full force and effect. It added that the certificate of incorporation of Kapa was subsequently revoked in April 2019.

Among those charged were Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario, and Kapa promoters Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan.

On Feb. 11 this year, the Bislig City RTC ordered the arrest of the founder, officers and promoters of Kapa. On Feb. 18, the Cagayan de Oro City RTC Branch 21 issued the warrant of arrest against Apolinario, along with eight other people connected to Kapa, for syndicated estafa.

On Feb. 19 and Feb. 27, the Apolinarios and Catubigan, respectively, surrendered and posted bail for their temporary liberty while facing the investment fraud charges filed by the DOJ.

—Inquirer Research