THE Securities and Exchange Commission (SEC) denied that Kapa Community Ministry International Inc. (Kapa) is back in business after some radio anchors claimed that the commission issued a memorandum circular giving Kapa the authority to do "crowdfunding."
In a forwarded statement, the SEC warned the public from viewing YouTube videos featuring the alleged news relayed by anchors Roger Abing Camingawan and Daniel Flash Villas in their radio broadcast, claiming that Kapa will not be subjected to the raids of the National Bureau of Investigation (NBI) since it is already registered with the issuance of SEC Memorandum Circular 14, series of 2019.
SEC added that according to the video, Camingawan said by virtue of Section 2 Paragraph (Q), "Registrar of Qualified Buyers," Kapa is now registered as a crowdfunding entity and it is now "merely awaiting the document that authorizes them to be a crowdfunding entity."
"To set the record straight, Kapa is not registered with the Commission under SEC Memorandum Circular 14, Series of 2019 or the Rules and Regulation Governing Crowd Funding either as a crowdfunding intermediary or funding portal, nor has it a pending application before the Commission under said Rules. Thus, Kapa is not licensed to engage in crowdfunding," the commission said in a statement.
SEC reminded the public "to exercise caution in viewing these kinds of YouTube video posts as they have been found to contain false reports."
SEC also said the abovementioned anchors, according to Kapa's counsel, are not authorized to speak in behalf of the group.
"Further, Kapa, through its counsel on record, has disclaimed authorizing the publication of a myriad of posts on social media claiming that only authorized officers of Kapa, namely: Rene Catubigan and Ronnie Garay may speak on behalf of the entity," SEC said.
The SEC en banc in February 2019 issued a cease and desist order against Kapa, including its founder Joel A. Apolinario, from engaging in activities of selling and/or offering for sale securities in the form of investment contracts in the guise of donation or any other forms of the same nature.
In March 2019, the commission made the order permanent after Kapa failed to file a motion to lift the order within the prescribed period.
SEC, in April, revoked Kapa's Certificate of Registration.
Meanwhile, the commission already filed a criminal complaint against Kapa and its directors, officers and agents, including Apolinario, for violation of the Securities Regulation Code.
The case was filed before the Department of Justice after the commission found probable cause to indict said persons before the appropriate courts.
President Rodrigo Duterte, in June, also declared Kapa's transaction illegal.