SEC sees progress in criminal cases vs. Kapa after founder's arrest

The Securities and Exchange Commission (SEC) is optimistic on the progress of the cases pending in various courts against Kapa-Community Ministry International (KAPA) for allegedly scamming the public following the arrest of its leader for syndicated estafa.

“With the mastermind already behind bars, we are positive about the progress and resolution of the criminal cases we have initiated to bring KAPA to justice,” SEC Chairperson Emilio Aquino said in a statement Friday.

“The Commission stands committed to protecting the public from predatory and fraudulent investment schemes, more so during the pandemic. It will be persistent in pursuing the perpetrators.”

On Tuesday, Kapa leader Joel Apolinario and 23 other were arrested in Surigao del Sur, a police operation that also resulted in the death of two persons.

Apolinario was arrested after policemen swooped down on an isolated resort in Sitio Dahican in Brgy. Handamayan, Lingig at 7:30 a.m.

An exchange of gunfire ensued between Kapa members and the authorities.

Two unidentified suspects were killed while a certain Melecio Siano, one of Apolinario's men, was brought to the Bislig City District Hospital.

The Bislig Regional Trial Court Branch 29 ordered the arrest of Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario, and alleged promoters Marisol Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan on Tuesday.

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

The SEC said a person found to have violated the Securities Regulation Code, or the relevant rules and regulations promulgated by the SEC, 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, the 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, the SEC. —KBK, GMA News