SEC: KAPA is not registered, cannot collect investments

SEC logo 050218 - SEC: KAPA is not registered, cannot collect investments

THE Securities and Exchange Commission (SEC) is denying news that KAPA Community Ministry International, Inc. has been registered and is cleared to start operations as a crowdfunding entity.

In a statement Monday, the country’s corporate regulator disproved YouTube videos of a supposed radio broadcast that claimed KAPA “will not be subjected to NBI (National Bureau of Investigation) raid since it already registered with the Commission…”

“To set the record straight, KAPA is not registered with the Commission,” it said. “The public is hereby warned to exercise caution in viewing these kinds of YouTube video posts as they have been found to contain false reports.”

The SEC likewise reinforced its cease and desist order against the organization that it issued in February, which specifically named KAPA founder and president Joel A. Apolinario and any person acting on his behalf.

“The said Cease and Desist Order was eventually made permanent and is in full force and effect up to the present,” the SEC said, adding that the Commission en banc has issued an April 3 decision to revoke the certificate of registration of KAPA.

The SEC has been trying to warn the public against KAPA for almost three years as the organization violated provisions of the Securities and Regulation Code (SRC).

It filed a court case against the group in June for violating Section 8 (8.1) of the SRC which pertains to the requirement to register securities with the SEC; Section 26.1 which prohibits the use of schemes to defraud; and Section 28 which requires brokers and dealers to register with the SEC to buy and sell securities.

The Department of Justice eventually found in October probable cause to indict the identified KAPA officers in SEC’s complaint. These are Mr. Apolinario, trustee Margie A. Danao, corporate secretary Reyna L. Apolinario and others that were involved in KAPA’s illegal selling of securities: Marisol M. Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan.

The SEC claims KAPA solicits at least P10,000 from its members in the guise of “donations,” in exchange of monthly returns of 30% “blessings” or “love gifts” for life.

The SEC estimates KAPA has collected about P50 billion from its operations based on its supposed 5 million members and the minimum investment of P10,000 per head. — Denise A. Valdez

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