Cases filed against Kapa, ‍‍its founders and officers

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

Kapa 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.

In a filing at Bislig City Regional Trial Court (RTC) Branch 29, 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 DOJ also charged Kapa founder and president Joel Apolinario, trustee Margie Danao and corporate secretary Reyna Apolinario of violating Sections 8(8.1), 26.1 and 28 of the Securities Regulation Code.

Also indicted were Kapa promoters Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan for violation.

The DOJ further charged Diaz before the Rizal RTC for violation of Section 28. It filed similar charges against Mopia and Fernandico with the Quezon City RTC Branch 93.

So far, the SEC has verified that a warrant of arrest was issued by the Quezon City RTC on Dec. 2, 2019, against Fernandico, the SEC said in a statement on Thursday.

“We are committed to see the criminal proceedings against Kapa through to the end,” SEC Chair Emilio Aquino said. “We will pursue everyone involved in the investment scam that played havoc with the future of our fellow Filipinos, including those who continue to attempt to perpetuate it.”

Upon finding of sufficient probable cause, the judges may order the arrest of the indicted officers and promoters of Kapa, in accordance with the Revised Rules of Criminal Procedure.

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.

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.

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.

Meanwhile, the SEC reiterated its call on the general public to exercise more caution and discernment, noting that certain supporters and promoters of Kapa peddled false information about the group’s supposed revival.