SEC renews warning vs. investment scams amid KAPA’s disinformation campaign

The Securities and Exchange Commission (SEC) is advising the public at large to exercise more caution and discernment amid disinformation campaigns of investment scammers.

The commission took note of false claims by Kapa-Community Ministry International (KAPA) on social media. Supposedly, the group was poised to secure the necessary licenses to resume its operations.

Most recently, KAPA falsely claimed that the Bangko Sentral ng Pilipinas released a statement purportedly approving its investment scheme and questioning delays on the part of the SEC. The central bank refuted such claim, the SEC said in a statement Tuesday.

KAPA also falsely claimed that it already filed with the SEC an application for a secondary license to sell and offer for sale securities to the public.

The commission has not received any application for a secondary license from KAPA, as verified by the SEC Company Registration and Monitoring Department (CRMD). “Besides, KAPA does not have a juridical personality to make such application,” the SEC noted

On April 3, the commission revoked KAPA’s certificate of incorporation for serious misrepresentation of what it could do or was doing to the great prejudice of or damage to the general public.

“KAPA, formerly registered with the SEC as a nonstock corporation, solicited investments from the public without securing a secondary license. Worse, the group had employed a Ponzi scheme,” the commission said.

Under its scheme, KAPA had enticed the public to “donate” P10,000 in exchange for a 30% monthly “blessing” or “love gift” for life, without having to do anything other than shell out money and wait for the promised payout.

Section 8 of Republic Act No. 8799, or the Securities Regulation Code, provides that “securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the commission.”

It prohibits fraudulent transactions, including Ponzi schemes where investors are lured by impossibly high returns and paid using money contributed by other investors.

Section 28 further states that no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.

In this light, those acting as salesman, broker or agent may be prosecuted and held criminally liable. They may also face a maximum fine of P5 million or imprisonment of 21 years or both, pursuant to Section 73 of the Securities Regulation Code.

On June 18, the Commission filed a criminal complaint against KAPA, its founder and president Joel A. Apolinario, trustee Margie A. Danao, corporate secretary Reyna L. , and other promoters of the investment scam.

“We enjoin the investing public to be more discerning with and critical of any promises and persuasions made by fraudsters,” SEC Chairperson Emilio B. Aquino said.

“When presented an investment opportunity, take time to verify the legitimacy of the company, especially their authority to solicit investments from the public, and to understand how the promised returns will be generated and delivered,” he added.

Those who have invested money in KAPA may file complaints with the SEC Enforcement and Investor Protection Department at Secretariat Building, PICC Complex, Roxas Boulevard, Pasay City with telephone numbers (02) 818-6337 and (02) 818-5324.

Affected investors may also visit the SEC Davao City Extension Office at SDC Building, Purok 13, Maa Road, Maa, Davao City; call (082) 298-2170 and (082) 298-1893; or email kjpestares@sec.gov.ph. In Cagayan de Oro City, they may visit the Commission at SEC Building, corner 14th and Tomasco Del Lara Street; call (088) 857-4325 and (088) 857-7225; or email rvegypto@sec.gov.ph. —VDS, GMA News