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SEC warns public on KAPA’s ‘disinformation’ campaign

/ 02:52 PM August 27, 2019

MANILA, Philippines — The Securities and Exchange Commission has warned the public on the “disinformation” campaign of entities that had been exposed to be “investment scammers,” particularly Kapa-Community Ministry International (KAPA), a religious corporation found soliciting investments in a manner resembling a Ponzi scheme.

A Ponzi scheme is an investment fraud which lures investors with promises of high financial returns or dividends. In such a scheme, the operator pays the initial disciples by the amount invested by subsequent investors while bulk of the investment remains with the proponent or operator.

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Among others, the SEC called out what it stressed as KAPA’s false claim in social media that it was in the process of securing the necessary licenses to resume its operations. KAPA even cited a supposed statement issued by the Bangko Sentral ng Pilipinas (BSP) in its favor.

The BSP was expected to release a separate statement refuting the claim.

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“We enjoin the investing public to be more discerning with and critical of any promises and persuasions made by fraudsters,” SEC chair Emilio Aquino said in a press statement on Tuesday.

“When presented an investment opportunity, take time to verify the legitimacy of the company, especially their authority to solicit investments from the public, and to understand how the promised returns will be generated and delivered,” he added.

KAPA also falsely claimed that it already filed with the SEC an application for a secondary license to sell and offer for sale securities to the public.

The SEC stressed that it had not received any application for a secondary license from KAPA, as verified by the SEC Company Registration and Monitoring Department (CRMD). Besides, KAPA does not have a juridical personality to make such application, the SEC said.

The corporate watchdog earlier issued a cease-and-desist order to KAPA. On April 3, the SEC revoked KAPA’s certificate of incorporation for “serious misrepresentation of what it could do or was doing to the great prejudice of or damage to the general public.”

Under its scheme, KAPA had enticed the public to “donate” P10,000 in exchange for a 30 percent monthly “blessing” or “love gift” for life, without having to do anything but wait for the promised payout.

On June 18, the SEC filed a criminal complaint against KAPA, its founder and president Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario and other promoters of what it determined to be an investment scam. /muf

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TAGS: KAPA, Kapa Community Ministry International, Ponzi, SEC
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