DOJ APPROVES FILING OF RAPS VS KAPA EXECS

The Department of Justice (DOJ) has recommended the filing of criminal charges against Kapa-community Ministry International and its key officials for allegedly perpetrating a Ponzi scam.

In a resolution issued on Sept. 25, state prosecutors found probable cause to charge Kapa, its founder and president Joel Apolinario, trustee Margie Danao and corporate secretary Reyna Apolinario for multiple violation of the Securities Regulation Code (SRC).

They also indicted Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan for promoting and participating in the unlawful public offering or selling of securities by Kapa, the Securities and Exchange Commission (SEC) said in a press statement on Tuesday.

The SEC, which filed a criminal complaint against Kapa in June, said the group perpetrated the Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by other investors.

30-percent ‘blessing’

Kapa has enticed the public to invest at least P10,000 in exchange for a 30 percent monthly “blessing” or “love gift” for life, without having to do anything other than invest and wait for the payout.

“The indictment of Kapa, along with its founder, officers and promoters, is an affirmation of our unwavering commitment to championing investors and tackling abuses in the corporate sector,” SEC Chair Emilio Aquino said.

“This should also serve as a stern warning against other groups engaging in unlawful investment-taking activities and other predatory practices to the detriment of the investing public,” Aquino said.

The Kapa scheme involves the sale and offering for sale or distribution to the public of securities, in the form of investment contracts, as defined under Section 3 of the SRC, according to the SEC. These were disguised as “donations.”

Code violations

Ponzi scheme qualifies as a fraudulent transaction prohibited under Section 26 of the SRC.

Offenders face a maximum fine of P5 million or imprisonment of seven to 21 years, or both.

The SEC has pushed for a penalty one degree higher, considering the use of Facebook and Youtube in the illegal investment scheme.