OFFICERS and identified promoters of Kapa-Community Ministry International (Kapa) are now inching closer to be behind bars as the court found sufficient probable cause for them to be arrested.
In a press release from the Securities and Exchange Commission (SEC), the Department of Justice (DOJ) has filed formal criminal charges against Kapa, its officers and promoters with the regional trial courts (RTC) in Bislig City, Quezon City and Rizal.
SEC said the court finds sufficient probable cause for the issuance of warrants of arrest, in accordance with the Revised Rules of Criminal Procedure, wherein the order the arrest of the indicted officers and promoters of Kapa shall be issued.
In separate information filed with the Bislig City Regional Trial Court Branch 29, DOJ accused Kapa of “willfully, unlawfully and criminally” engaging in the selling or offering for sale or distribution of securities to the general public without a registration statement duly filed with and approved by SEC.
DOJ charged Kapa founder and president Joel Apolinario, trustee Margie A. Danao and corporate secretary Reyna Apolinario of violating the Republic Act No. 8799, or the Securities Regulation Code (SRC).
DOJ also filed charges against Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan for violation the SRC for promoting the investment scam.
Diaz was also charged before the Rizal RTC for also violating the SRC. Similar charges were also filed against Mopia and Fernandico with the Quezon City RTC Branch 93.
"The concerned judges, upon finding of sufficient probable cause for the issuance of Warrants of Arrest, shall order the arrest of the indicted officers and promoters of Kapa, in accordance with the Revised Rules of Criminal Procedure," SEC said in a press statement.
SEC, on June 18, 2019, filed complaint against Kapa for the unauthorized sale or offering for sale or distribution of securities to the general public.
In a resolution issued on September 25, 2019, DOJ found probable cause to bring charges against Kapa, affirming the findings of the SEC.
The commission found Kapa to have enticed the public to invest at least P10,000 in exchange for a 30 percent monthly return for life, without having to do anything other than invest and wait for the payout.
SEC also found Kapa to have employed a Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by later investors.
The commission recently reiterated its announcement that Kapa is "not back in business" after radio broadcasters in General Santos City Roger Abing Camingawan and Daniel Flash Villas claimed that Kapa successfully registered as a crowdfunding entity, pursuant to SEC Memorandum Circular No. 14, Series of 2019, among others.
Kapa, through its counsel on record, earlier disclaimed authorizing the publication of such false claims on social media and noted that only Catubigan and Ronnie Garay may speak on behalf of the group.
SEC said individuals found to have violated the SRC, or the relevant rules and regulations promulgated by the commission, will face a maximum fine of P5 million or imprisonment of seven to 21 years, or both.
Considering the use of Facebook and YouTube in the illegal investment scheme, DOJ recommended that the penalty to be imposed against Kapa, its officers and agents be one degree higher than what is prescribed by the SRC, pursuant to Section 6 of Republic Act No. 10175, or the Cybercrime Prevention Act of 2012.
Meanwhile, SEC reiterated its advice for the general public to exercise more caution and discernment as certain supporters and promoters of Kapa peddled false information about the group’s supposed revival.