SEC REVOKES KAPA REGISTRATION
By ROGER M. BALANZA
The Kapa-Community Ministry International, Inc. (Kapa) has closed down its various offices in key cities and municipalities in the Caraga Region, Davao Region, Bukidnon and other parts of Southern Mindanao and the SOCCSKSARGEN area as hundreds of victims of its investment scam demanded return of their investment.
Kapa, founded by Pastor Joel Apolinario, lures the public with a 30 percent monthly return on investment. Apolinario is said to be subject of warrants of arrests for the Kapa scam in several courts in the Surigao provinces where it first started operating few years ago.
The tsunami of investors demanding their money back developed as the Securities and Exchange Commission (SEC) issued another revocation order to Kapa, said to have fleeced thousands of victims in a scam reaching to billions of pesos.
The order covered the partners, officers, directors, agents, representatives and all other persons acting for and in behalf of Kapa.
Kapa’s other investment arms are the Kapa Kabus Padatuon (Enrich the Poor), Kapa/ Kappa (Kabus Padutoon), Kapa-Co Convenience Store and General Merchandise, and Kapa Worldwide Ministry
The SEC earlier on February 14, also issued a cease and desist order against Kapa.
In its April 3 ruling, the SEC En Banc revoked Kapa’s certificate of incorporation for engaging in unauthorized investment-taking scheme and “serious misrepresentation on what it can do or is doing to the prejudice and damage of the public.”
The revocation of Kapa’s registration is an offshoot of the recommendation of the SEC Enforcement and Investor Protection Department to revoke Kapa’s certificate of incorporation “for offering and selling securities, in the form of investment contracts and in the guise of donations, without the necessary license.”
In its decision , the SEC En Banc described the Kapa investment scam as similar to the Ponzi scheme which is outlawed by Section 6(i)(2) of Presidential Decree No. 902-A, or SEC Reorganization Act.
“Kapa 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,” the SEC En Banc said.
“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,” it said.
The SEC has advised the public to report to its head office or extension offices any continued investment-taking activity by Kapa and its allied entities.