AN OFFICIAL of the Securities and Exchange Commission (SEC) Cebu extension office is advising victims of investment scams to file charges.
Alma Estrada-Dalena, a securities counsel, told SunStar Cebu they are also mulling to form an inter-agency task force with authorities to address concerns on the alleged investment scam of Kapa-Community Ministry International Inc. (Kapa) and other financial companies.
Dalena said they need the help of law enforcement agencies since their function is administrative.
“We have plans to eventually form a task force because we believe that what the inter-agency task force in Davao did should be duplicated here,” Dalena said.
Fourteen operators of investment schemes in Davao were shut down by an inter-agency task force because of the lack of government requirements.
Dalena said they are not only monitoring Kapa but also other investment companies that promise a fast payout of an investor’s money.
The SEC Cebu extension office has jurisdiction over Central and Eastern Visayas.
Dalena said that although their office has yet to receive a formal complaint from any victims, they strongly discourage investing in companies that may be engaged in fraudulent schemes.
If an investor falls prey to a scam, Dalena said they need to go directly to the regular court to file a case.
“We have exhausted all efforts from issuing a series of advisories, a cease and desist order and even the revocation of their registration to inform the public of these dealings,” she said.
Dalena said these investment scams target overseas Filipino workers, pensioners or those who have money to roll out.
But she reiterated that not one individual has gone to their office to complain or to inquire about these financial companies.
Their agency is coordinating with the Department of Justice in regard to financial companies reportedly involved in investment schemes.
Last Monday, June 3, 2019, the Police Regional Office (PRO) 7 also warned that it would relieve police personnel caught investing in Kapa.
But despite SEC’s repeated advisories and the PRO 7’s threats, some members of the public continue to believe that Kapa’s operations are legitimate.
Gwen (not her real name), a 29-year-old single real estate broker in Cebu City, said she “donated” P1 million to Kapa, which she divided in 10 accounts of P100,000 each.
A month after she made the donation, she opted to accept her “love gift” (interest) of P30,000 for one account at the Kapa office in the northern town of Compostela, Cebu since she decided to leave her donations and collect the proceeds of P1.3 million for each account at the end of one year.
She insisted that her donation was a legitimate investment. That is why she is not afraid despite all the negative publicity against Kapa.
Gwen said many people have received their love gifts that had far exceeded the amount they donated to the ministry.
“I am not afraid of SEC’s advisories since the Commission does not have a court order. Only the court can shut down Kapa,” Gwen said in Cebuano.
She also said the religious corporation told her that she must withdraw her donations once each account reaches P3 million.
Meanwhile, Cathy (not her real name), a Mandaue City resident who has been a member of Kapa since last December, said she donated P50,000 when Kapa still had its office in Liloan, Cebu.
She said she already received love gifts of P15,000 each (the promised 30 percent return) on four occasions, or a total of P60,000. She decided to leave P30,000 with Kapa and collect the proceeds at the end of one year.
On April 3, 2019, the SEC revoked Kapa’s Certificate of Corporate Registration, saying that soliciting investments from its members was neither essential nor necessary to carry out Kapa’s purpose as a religious corporation; therefore, its investment-taking activities in the guise of donations constituted a “serious misrepresentation” on what it can do.
Kapa is collecting investments from the public in the guise of a “donation” with a promise of a “30 percent return per month until forever,” the SEC said.
Unlike Gwen, Cathy is worried about the SEC advisories and the police warnings.
But since she already recouped her capital, she said she wouldn’t suffer that much financially if the government closed Kapa.
“If that happens, let’s just say I gambled and I lost. Kapa members cannot do anything if everything turns out to be a scam since we signed a piece of paper saying the money we turned over was a donation,” Cathy said in Cebuano. (From AYB of SuperBalita Cebu, PJB)