Kapa continues to defy SEC

Logo courtesy of Securities and Exchange Commission and Kapa-Community Ministry International, Inc. Facebook page
Logo courtesy of Securities and Exchange Commission and Kapa-Community Ministry International, Inc. Facebook page

DESPITE the advisory released by the Securities and Exchange Commission (SEC) against Kapa-Community Ministry International Inc., the religious corporation continues to accept members and investors.

A staff member of Kapa has assured that they have not received any complaints from their investors and members.

Melchor Dueda, a staff member of Kapa in its Taytay, Rizal branch, said none of their investors have complained.

“If that’s the malicious news about Kapa, no member is complaining because it’s legit,” said Dueda in a text message to SunStar Cebu.

Last February, the SEC ordered Kapa to stop soliciting investments from the public because it did not have the license to do so, and its manner of investment resembled a Ponzi scheme.

Without the authority to offer and sell securities, Kapa still recruited and encouraged its members to donate any amount in exchange for a 30 percent monthly return, the SEC advisory said.

Because it continued to defy the cease and desist order, the SEC revoked Kapa’s certificate of registration on April 3, 2019.

The SEC said Kapa’s investment-taking activities were not essential to carrying out its duties as a religious corporation; therefore, taking investments in the guise of “donations” was a “serious misrepresentation” of what it can do.

But last Tuesday, June 4, Kapa posted a video on YouTube stating its “new policy starting June 2019.” The video showed an unnamed woman from its Quezon City branch orienting people on how members could get IDs and invest. She also waved papers she claimed was a “writ of preliminary injunction, meaning this is the last decision of the court that ang Kapa hindi nila puwedeng pakialaman. Hindi nila tayo puwedeng ipasara (The SEC cannot touch or close Kapa).”

On the same day, June 4, the SEC Cebu extension office told SunStar Cebu that it planned to form an inter-agency task force to address concerns on the alleged investment scam of Kapa.

Kapa originated in Bislig City, Surigao del Sur. It opened its doors in Cebu last April.

Meanwhile, Police Regional Office 7 Director Debold Sinas has begged off from issuing more statements on Kapa, saying the SEC requested him to refrain from commenting against Kapa.

Sinas said he will wait for the SEC’s action, as the agency has the authority to check the activities of Kapa.

A resident of Compostela, Cebu told Superbalita Cebu that Kapa’s office in the town no longer opened after the police inspected it.

The Compostela Municipal Government will file a complaint against Kapa for its failure to get a business permit last April.

While Kapa faces controversy for going against the SEC, its founder is also warning against other organizations that could be scamming others of their investments.

In a video he posted on YouTube on May 23, 2019, Pastor Joel Apolinario called on his members to pull out their investments from other organizations, which he described as scammers.

“I was able to sustain millions of my members every day because of our business. Now, you will just invest that hard-earned money on some sort of scam financial company? I hope you will help me as I was able to help you,” he said in a mix of Tagalog and English.

Apolinario did not name the firm but said it was operating in Tagum City, Davao del Norte.

“In Tagum City, they have different offices. That alone tells you it’s a scam. They have no exact and fixed office,” he said.

He advised members to approach the National Bureau of Investigation should the said company fail to return their investments. (WBS, JJL, From AYB of SuperBalita Cebu, KAL)

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