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Kapa founder, execs ordered arrested for investment fraud

February 13, 2020 - Thursday 6:02 PM by Ruth Palo

Article Banner Image Thousands of KAPA membersin a rally in General Santos City in June 2019. MindaNews file photo by BONG S. SARMIENTO

DAVAO CITY — The Bislig City Regional Trial Court (RTC) on Tuesday issued warrants of arrest against founders, officers, and promoters of the Kapa (Kabus Padatuon) Community Ministry International for charges of investment fraud.

The Securities and Exchange Commission (SEC) on Wednesday said warrants of arrests were issued by the Bislig RTC Branch 29 against Kapa founder and president Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario, and promoters Marisol Diaz, Adelfa Fernandico, Moises Mopia, and Reniones Catubigan.

The warrants of arrest were issued following the criminal charges filed by the prosecutors at the Department of Justice (DOJ) for violations of Republic Act Number 8799 or the Securities Regulations Code (SRC).

Citing the DOJ order, the SEC said Kapa is "willfully, unlawfully and criminally" selling securities without registration.

The officials were also charged for "promoting the investment scam," the SEC said. 

“It is about time that the people behind Kapa answer the criminal charges filed against them,” SEC chair Emilio Aquino said in a statement.

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.

The SEC said it found Kapa to have enticed 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.
The SEC said it 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 later investors.”

The SEC initially issued an advisory against Kapa in March 2017. 

It later issued a Cease and Desist Order on February 14, 2019 and an order of revocation of Kapa’s Certificate of Incorporation on April 3, 2019.

Kapa, said to be a religious group, started operations three years ago in Bislig, Surigao del Sur and expanded across Mindanao before reaching the Visayas and Luzon.

The SEC urged the public to exercise "caution and discernment" as the remaining supporters of Kapa “have suggested the group's alleged revival.”