A court in Bislig City, Surigao del Sur has ordered the arrest of the founder and key officers of Kapa Community Ministry International for charges of investment fraud.
The Bislig Regional Trial Court Branch 29 ordered the arrest of Kapa founder Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario, and alleged promoters Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan on Tuesday, the Securities and Exchange Commission (SEC) said Wednesday.
State prosecutors have filed criminal charges against the Kapa officers for violations of the Securities Regulation Code based on allegations by the corporate regulator.
The SEC had accused Kapa of enticing the public to invest at least P10,000 into the organization in exchange for a 30% monthly return for life "without having to do anything other than invest and wait for the payout."
Prosecutors from the Department of Justice had found the officers sold or offered securities for sale without filing a registration statement with the SEC.
In indicting the officers last September, the panel of prosecutors found that Kapa was engaged in a Ponzi scheme "considering the impossibly high yields of return promised to investors."
They also rejected Kapa's argument that the "investments" were religious donations, because "the promise of return negates the giver’s liberality that is the hallmark of every donation," Justice Undersecretary Markk Perete said at the time. —KG, GMA News